Under the actual expense method, which, if any, of the following expenses will not be allowed?
A) Parking fines incurred during business use of a car.
B) Interest expense on a car loan (taxpayer is self-employed).
C) Auto insurance.
D) Auto club dues.
E) None of the above.

Question

Quizplus · Accepted Answer

Parking fines are considered non-deductible personal expenses, and therefore cannot be deducted as a business expense under the actual expense method.

Answer: B, C, D 
 Interest expense on a car loan, auto insurance premiums, and auto club dues are all considered ordinary and necessary business expenses and can be deducted under the actual expense method.

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