Sarah purchased a new car at the beginning of the year. She makes an adequate accounting to her employer and receives a $2,400 (12,000 miles × 20 cents per mile) reimbursement in 2016 for employment-related business miles. She incurs the following expenses related to both business and personal use:
$\begin{array}{ll}
\text { Gas and oil } & \$ 6,000 \
\text { Repairs and maintenance } & 2,500 \
\text { Depreciation } & 3,000 \
\text { Insurance } &{1,800} \
\text { Total } & {\$ 13,300}
\end{array}$ She also spent $200 on parking and tolls that were related to business. During the year she drove a total 20,000 miles.
What are the possible amounts of Sarah's deductible transportation expenses?

Question

Sarah purchased a new car at the beginning of the year. She makes an adequate accounting to her employer and receives a $2,400 (12,000 miles × 20 cents per mile) reimbursement in 2016 for employment-related business miles. She incurs the following expenses related to both business and personal use:
 $\begin{array}{ll}
\text { Gas and oil } & \$ 6,000 \
\text { Repairs and maintenance } & 2,500 \
\text { Depreciation } & 3,000 \
\text { Insurance } &{1,800} \
\text { Total } & {\$ 13,300}
\end{array}$ She also spent $200 on parking and tolls that were related to business. During the year she drove a total 20,000 miles.
What are the possible amounts of Sarah's deductible transportation expenses?

Quizplus · Accepted Answer

The Answer of Sarah purchased a new car at the beginning of the year. She makes an adequate accounting to her employer and receives a $2,400 (12,000 miles × 20 cents per mile) reimbursement in 2016 for employment-related business miles. She incurs the following expenses related to both business and personal use:
 $\begin{array}{ll}
\text { Gas and oil } & \$ 6,000 \
\text { Repairs and maintenance } & 2,500 \
\text { Depreciation } & 3,000 \
\text { Insurance } &{1,800} \
\text { Total } & {\$ 13,300}
\end{array}$ She also spent $200 on parking and tolls that were related to business. During the year she drove a total 20,000 miles.
What are the possible amounts of Sarah's deductible transportation expenses?

Sarah Purchased a New Car at the Beginning of the Year