Question

During the year 2018, Ricki, who is not self-employed and does not receive employer reimbursement for business expenses, drove her car 5,800 miles to visit clients, 10,800 miles to get to her office, and 500 miles to attend business-related seminars. All of this mileage was incurred ratably throughout the year. She spent $420 for airfare to another business seminar and $240 for parking at her office. Using the automobile expense rates in effect for 2018, what is her deductible transportation expense?

Answer 1

Taxpayer can deduct cost associated with their business. Expenses associated with travel out of your home city or country is treated as deductible expenses, but travel with in the City is not deducted from the tax payment. Here Ricki can claim against Airfare to a business seminar but parking at heru office is not tax deductable. In 2018 Ricky drove 5,800 miles to visit clients and top miles to attend business related seminars.So 6,300 tax deductable miles which equals $ 3,433.5 deduction from the tax base.

In 2018 the IRS set the rate at 54.5 Cents for every mile of business travel. So (6,300*54.5% = 3433.5) .Richi can claim $ 420 for Airfare to another business seminar travel.

So, the total tax deduction with related to Rochi travel in 2018 are ; = $3853.5

*** ($3433.5+$420 = $3853.5)