Chapter 6 w solutions

Chapter 6 w solutions

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Unformatted text preview: Burkett – Tax I - Chapter 6 Auto Expenses – Example 12, pp. 6.7-8 Answer is different than the book. Why? Nancy is a self employed real estate salesperson. In the 2011 she uses her car 18,700 miles for business & 3,800 miles for commuting to the office & other personal reasons for a total of 22,500 miles. Assume the business mileage was incurred evenly over the year. Her auto expenses are depreciation, insurance, license, repairs =$14,000, tolls & parking while on business = $125 & interest on car loan = $250 Business use %? 18,700/22,500 = 83% Deduction using standard mileage rate? Depreciation, insurance, license, repairs $14,000 Tolls & parking while on business 125 x 1 = 125 Interest on car loan 250 x.83= 208 9,958 $10,291 Business mileage 18,700/2=9,350 9,350 * .51 = $4,769 9,350 * .55.5 = $5,189 $9,958 Total auto deduction on schedule C $10,291 Reduction...
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This note was uploaded on 02/22/2012 for the course ACCT 403 taught by Professor White during the Fall '11 term at South Carolina.

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