Chelsea,who is self-employed,drove her automobile a total of 20,000 business miles in 2017.This represents about 75% of the auto's use.She has receipts as follows: Chelsea has an AGI for the year of $50,000.Chelsea uses the standard mileage rate method.After application of any relevant floors or other limitations,she can deduct

Question

Chelsea,who is self-employed,drove her automobile a total of 20,000 business miles in 2017.This represents about 75% of the auto's use.She has receipts as follows:  Chelsea has an AGI for the year of $50,000.Chelsea uses the standard mileage rate method.After application of any relevant floors or other limitations,she can deduct

Quizplus · Accepted Answer

A)(20,000 miles × .535)+ $500 parking + $200 tolls = $11,400.The cost of repairs would not be added to the standard mileage method.Chelsea is self-employed so the 2% of AGI floor does not apply.

Chelsea,who Is Self-Employed,drove Her Automobile a Total of 20,000 Business