Brittany,who is an employee,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: Brittany's AGI for the year is $50,000,and her employer does not provide any reimbursement.She uses the standard mileage rate method.After application of any relevant floors or other limitations,Brittany can deduct
A)$10,400.
B)$12,400.
C)$11,400.
D)$9,700.

Question

Brittany,who is an employee,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:  Brittany's AGI for the year is $50,000,and her employer does not provide any reimbursement.She uses the standard mileage rate method.After application of any relevant floors or other limitations,Brittany can deduct
A)$10,400. 
B)$12,400. 
C)$11,400. 
D)$9,700.

Quizplus · Accepted Answer

A)(20,000 miles × .535 + $500 parking + $200 tolls - $1,000 (2% of AGI))= $10,400.The cost of repairs would not be added to the standard mileage method.

Brittany,who Is an Employee,drove Her Automobile a Total of 20,000