Cole purchased a car for business and personal use. In 2015, he used the car 60% for business (13,000 total use miles) and used the standard mileage rate to calculate his vehicle expenses. He also paid $1,500 in interest and $360 in county property tax on the car. What is the total business deduction related to business use of the car rounded to the nearest dollar?

Question

Quizplus · Accepted Answer

The total business deduction includes the standard mileage rate deduction, business portion of interest, and business portion of property tax. The standard mileage rate for 2015 was 57.5 cents per mile. Therefore, the deduction is (13,000 miles * 0.60 * $0.575) + ($1,500 * 0.60) + ($360 * 0.60) = $4,485 + $900 + $216 = $5,601.

Cole Purchased a Car for Business and Personal Use