This year Clark leased a car to drive between his office and various work sites. Clark carefully recorded that he drove the car 23,000 miles this year and paid $7,200 of operating expenses ($2,700 for gas, oil, and repairs, and $4,500 for lease payments). What amount of these expenses may Clark deduct as business expenses?

Question

Quizplus · Accepted Answer

The costs are deductible and prorated between business and personal use. Alternatively, in lieu of deducting these costs, Clark may simply deduct a standard amount for the business mileage.

This Year Clark Leased a Car to Drive Between His