Question 50 Chapter 6
In 2017, Jessica bought a new heavy truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12,000 in 2017, 14,500 in 2018, and 13,000 in 2019.
If Jessica uses the standard mileage method, how much may she deduct on her 2019 tax return (miles were incurred ratably throughout the year)?
What is the deduction for 2019 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase.
Homework Answers
a. miles in 2019 x 80% usage (13000x.80)= 10400 x 58 cents per mile= $6,032 dedeuction
b. truck price x 19.2%(use MACRS table half year convention 5 yr, 3rd recovery year0
(45000 x .192)=8640 x 80% usage= $6912 deduction
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Just Need the C part.
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business that provides pet-sitting services. The
business is considered a sole proprietorship for income tax
purposes and represents Stella's only source of income. In 2018,
the standard deduction amount was greater than Stella's total
itemized deductions. Stella does not have any available tax credits
nor did she make any estimated tax payments for her 2018 tax
return.
Stella reports her income and expenses from the business using
the cash method. Stella's automobile was...
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