Haley, a self-employed individual, drove her automobile a total of 20,000 business miles in 2017. This represents about 75% of the auto's use. She has receipts as follows: $$\begin{array} { l r }
\text { Parking (business only) } & \$ 500 \
\text { Tolls (business only) } & \$ 200 \
\text { Total repairs } & \$ 1,000
\end{array}$$ If Haley uses the standard mileage rate method, how much can she deduct as a business expense?

Question

Haley, a self-employed individual, drove her automobile a total of 20,000 business miles in 2017. This represents about 75% of the auto's use. She has receipts as follows: $$\begin{array} { l r } 
\text { Parking (business only) } & \$ 500 \
\text { Tolls (business only) } & \$ 200 \
\text { Total repairs } & \$ 1,000
\end{array}$$ If Haley uses the standard mileage rate method, how much can she deduct as a business expense?

Quizplus · Accepted Answer

The standard mileage rate for 2017 was 53.5 cents per mile. Therefore, 20,000 miles x $0.535 = $10,700. Additionally, parking and tolls are fully deductible, adding $500 + $200 = $700. Total deduction is $10,700 + $700 = $11,400.

Haley, a Self-Employed Individual, Drove Her Automobile a Total of 20,000