Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2014. This represents about 75% of the auto's use. She has receipts as follows: Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct
A) $11,200.
B) $12,200.
C) $11,950.
D) $13,200.

Question

Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2014. This represents about 75% of the auto's use. She has receipts as follows:  Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct
A) $11,200. 
B) $12,200. 
C) $11,950. 
D) $13,200.

Quizplus · Accepted Answer

(20,000 miles × .575) + $500 parking + $200 tolls - $1,000 (2% of AGI) = $12,200. The cost of repairs would not be added to the standard mileage method.

Brittany, Who Is an Employee, Drove Her Automobile a Total