Chelsea, who is self-employed, drove her automobile a total of 20,000 business miles in 2015. This represents about 75% of the auto's use. She has receipts as follows: Chelsea has an AGI for the year of $50,000. Chelsea uses the standard mileage rate method. After application of any relevant floors or other limitations, she can deduct

Question

Chelsea, who is self-employed, drove her automobile a total of 20,000 business miles in 2015. This represents about 75% of the auto's use. She has receipts as follows:  Chelsea has an AGI for the year of $50,000. Chelsea uses the standard mileage rate method. After application of any relevant floors or other limitations, she can deduct

Quizplus · Accepted Answer

(20,000 miles × .575) + $500 parking + $200 tolls = $12,200. The cost of repairs would not be added to the standard mileage method. Chelsea is self-employed so the 2% of AGI floor does not apply.

Chelsea, Who Is Self-Employed, Drove Her Automobile a Total of 20,000