Question

Martha is a self-employed tax accountant who drives her car to visit clients on a regular basis. She drives her car 4,000 miles for business and 10,000 for commuting and other personal use. Assuming Martha uses the standard mileage method, how much is her deductible auto expense for the year? a. The deductible business auto expense is $ . b. Where in her tax return should Martha claim this deduction? The expense should be deducted on Martha's .

Answer 1

Ans-a- The deductible business auto expense = Miles travelled for the purpose of business* standard milage rate

The deductible business auto expense= 4,000*0.545

= $2,180

Note- For 2018 the standard milage rate is 54.5cents per mile.

b-The expense should be deduct on Martha in Schedule C-Business Income and Expenses.

Answer 2

$2,300 (2020 standard milage rate is 57.5 cents per mile)