Under the actual expense method, which of the following expenses, if any, will not be allowed?
A)Parking fines incurred during business use of a car.
B)Interest expense on a car loan (taxpayer is self-employed).
C)Auto insurance.
D)Auto club dues.
E)None of the above.

Question

Quizplus · Accepted Answer

Parking fines incurred during business use of a car are not considered a legitimate business expense and therefore are not allowed under the actual expense method. The other expenses listed (B, C, and D) are all considered legitimate business expenses and would be allowed under the actual expense method.

Under the Actual Expense Method, Which of the Following Expenses