Amy works as an auditor for a large major CPA firm.During the months of September through November of each year, she is permanently assigned to the team auditing Garnet Corporation.As a result, every day she drives from her home to Garnet and returns home after work.Mileage is as follows: For these three months, Amy's deductible mileage for each workday is:

Question

Amy works as an auditor for a large major CPA firm.During the months of September through November of each year, she is permanently assigned to the team auditing Garnet Corporation.As a result, every day she drives from her home to Garnet and returns home after work.Mileage is as follows:  For these three months, Amy's deductible mileage for each workday is:

Quizplus · Accepted Answer

The IRS standard mileage rate for business travel for the year 2020 is 57.5 cents per mile. Multiplying this rate by the total mileage driven over the three months period (September to November) gives us:

57.5 cents/mile x 22 miles/day x 66 workdays = $8,415

Since Amy's commute is for work purposes and thus, considered a business expense, she can claim this mileage as a tax deduction. Therefore, her deductible mileage for each workday is:

$8,415 / 220 workdays (assuming a year-round employment) = $38.25 per workday

However, the IRS does not allow the deduction of commuting expenses between home and a regular place of work. Since Amy is permanently assigned to Garnet Corporation during the three months period, her commute between home and Garnet does not qualify for a tax deduction. Therefore, the correct answer is D) 60 miles.

Amy Works as an Auditor for a Large Major CPA