Cole purchased a car for business and personal use.In 2017,he used the car 60% for business (13,000 total use miles)and used the standard mileage rate to calculate his vehicle expenses.He also paid $1,500 in interest and $360 in county property tax on the car.What is the total business deduction related to business use of the car rounded to the nearest dollar?
A)$1,860.
B)$4,173.
C)$5,289.
D)$6,033.

Question

Quizplus · Accepted Answer

The standard mileage rate for 2017 was 53.5 cents per mile. For 13,000 miles, the deduction is 13,000 x 0.535 = $6,955. Since the car was used 60% for business, the business portion is $6,955 x 0.60 = $4,173. Additionally, 60% of the interest ($1,500 x 0.60 = $900) and property tax ($360 x 0.60 = $216) can be deducted. Total deduction: $4,173 + $900 + $216 = $5,289.

Cole Purchased a Car for Business and Personal Use