Under the actual cost method, which, if any, of the following expenses will not be allowed?
A)Car registration fees.
B)Auto insurance.
C)Interest expense on a car loan (taxpayer is an employee).
D)Dues to auto clubs.
E)None of the above.

Question

Quizplus · Accepted Answer

Interest expense on a car loan is not allowed under the actual cost method unless the taxpayer is self-employed and the vehicle is used for business purposes. All other expenses listed (car registration fees, auto insurance, and dues to auto clubs) are generally allowed under the actual cost method.

Under the Actual Cost Method, Which, If Any, of the Following