ANSWERS TO PROBLEMSCHAPTER 6 Topical List of Problems 24 Passenger Cars Part

Answers to problemschapter 6 topical list of problems

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ANSWERS TO PROBLEMS—CHAPTER 6 Topical List of Problems 24. Passenger Cars: Part Business/Part Personal Expenses (¶6805) 25. Passenger Cars: Part Business/Part Personal Expenses (¶6805) 26. Trade or Business, Production of Income, and Personal Expenses (¶6201, ¶6301, and ¶6725) 27. Trade or Business, Production of Income, and Personal Expenses (¶6201, ¶6301, and ¶6725) 28. Deductions for Losses (¶6401) 29. Trade or Business Deductions (¶6201-¶6245) 30. Deductions for AGI or from AGI (¶6115 and ¶6125) 31. Deductions for AGI or from AGI (¶6115 and ¶6125) 32. Tax Planning and Compliance Expenses (¶6325) 33. Deductible Amounts Paid on Behalf of Another Taxpayer (¶6785) 34. Salaries and Wages Deductions (¶6245) 35. Property Tax Deductions (¶6245) 36. MACRS Depreciation (¶6801) 37. Alternative Straight-Line Depreciation (¶6801) 38. MACRS Depreciation (¶6801) 39. Midquarter Convention Asset (¶6801) 40. MACRS and Section 179 (¶6825) 41. MACRS Depreciation and Passenger Cars (¶6805) 42. MACRS, Section 179, and Automobiles (¶6805) 43. MACRS Depreciation and Residential Real Property (¶6801) 44. MACRS Depreciation and Nonresidential Real Property (¶6801) 45. Conversion of Personal to Business Use Property (¶6855) 46. Conversion of Personal to Business Use Property (¶6855) 47. Research and Experimentation Expenses (¶6875) 48. Depletion Deduction (¶6885) 49. Transportation Expenses: Automobiles (¶6535) 50. Travel Expenses: Two Places of Business (¶6545) 51. Travel Expenses: Business and Personal Travel (¶6545) 52. Employee Moving Expenses (¶6560) 53. Multiple Choice—Rents and Royalties Expenses (¶6115 and ¶6301) 54. Multiple Choice—Trade or Business Expenses (¶6115 and ¶6201) 55. Multiple Choice—Trade or Business Expenses (¶6115 and ¶6201) 56. Multiple Choice—Immediate Expensing of Capital Expenditures (¶6825) 57. Comprehensive Problem—Deductible Expenses 58. Comprehensive Problem—Employee Moving Expenses 59. Research Problem—Trade or Business Deductions ©2015 CCH Incorporated. All Rights Reserved. Chapter 6
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23 Instructor’s Manual 60. Research Problem—Trade or Business Deductions Answers to Problems Part Business/Part Personal Expenses 24. The amount of Al's car expense deduction on his current year tax return is $5,667. Al would use the following formula for computing car expenses deductible as business- related expenses. Business Miles × Car Expenses = Car Expenses Deductible as Business-Related Expenses Total Miles 10,000 Business Miles × $10,200 Car Expenses = $5,667 Deductible Expenses 18,000 Total Miles The standard mileage allowance would only provide an allowance of $5,750 (10,000 business miles × $.575 per mile). Part Business/Part Personal Expenses 25. The amount of Al's car expense deduction on his current year tax return is $5,600, computed as follows: 10,000 Business Miles × $6,700 Car Expenses = $3,722 Deductible Expenses 18,000 Total Miles In this instance, it would be better for Al to use the standard mileage allowance which would provide an automobile deduction of $5,750 (10,000 business miles × $.575 per mile). Trade or Business, Production of Income, and Personal Expenses 26. a. T, "for" AGI b. P, "from" AGI c. T, "from" AGI d. T, "for" AGI e. T, "from" AGI Trade or Business, Production of Income, and Personal Expenses 27. a. T, "for" AGI b. X, not deductible c. X, not deductible d. T, "for" AGI e. X, not deductible ©2015 CCH Incorporated. All Rights Reserved. Chapter 6
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