Question

Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 13,120 miles for business during 2018 and a total (including business miles) of 16,000 miles. His total expenses for his automobile for the year are:

Gasoline $2,061 Oil changes 92 Insurance 1,030 Tires 225 Repairs 620 Total $4,028

The automobile cost $20,000 on January 1, and depreciation expense for the year, including business use, was $4,000. His business parking and toll fees for business amount to $327.

Calculate Marc's transportation expense deduction for the year under each method listed below.

Round business use to the nearest whole percentage. If required, round your answers to the nearest dollar.

Standard Mileage Method: $____________

Actual Cost Method:    $____________

Answer 1

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