Question

3.Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,400 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 12,000 miles (combination of business and personal travel). Ryan can provide written documentation of the business purpose for trips totaling 3,000 miles. If Ryan does not use the standard mileage rate, what business expense amount can Ryan deduct (if any) for these trips?

Answer 1

Answer : $3,350.

Explanation:

The expense that Ryan can deduct for the business trips he had is calculated by summing up the expenses he had with regards to gasoline and the depreciation.

Cost of gasoline = $1,400 × (3,000 miles / 12,000 miles) = $350

Cost of depreciation = $3,000

Adding the costs will give us an answer of $3,350.