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Chapter 6 w solutions

4114 deduction using actual expenses depreciation

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Unformatted text preview: in auto basis? $4,114 Deduction using actual expenses? Depreciation, insurance, license, repairs $14,000 x.83 = 11,620 Tolls & parking while on business 125 x 1 = 125 208 250 x.83 = $11,953 Total auto deduction on schedule C $11,953 Interest on car loan Continued on next Page>>>>>> 1 Burkett – Tax I - Chapter 6 Auto Expenses – Example 12, pp. 6.7-8 w/addl information Itemized deduction allowed if Nancy is self employed? Interest if on a home equity loan = $250-208= $42 (deducted above) What would change in the previous example if Nancy was an employee and not self employed? 1. Interest? Only deductible if the loan is secured by home. 2. Property tax (if any)? All deductible as itemized deduction (follows normal rules that apply to individual deductions). 3. Other allowed expenses: Reimbursed by employer? Cannot...
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