George drove a 2008 Chevrolet pick-up truck which he placed into service on January 2, 2019. The truck cost George S12,800. The truck weighs 6,800 pounds. George logged 22,000 business related miles in his pick-up truck. He alsologged 20,000 non-business related miles. Written documentation exists justifying the business - use of the pick - uptruck. George has always used the standard mileage method. The truck has never been depreciated under the MACRSmethod. Standard mileage method is based on $0.655 per mile for 2023. Vehicles over 6,000 lbs are in the SUV categorySection 179 limited to $28,900 per vehicle Bonus depreciation and MACRS depreciation is calculated normally

Show draftsGeorge's Truck Depreciation and Expense Calculation (Standard Mileage Method) Given…

Answered: George drove a 2008 Chevrolet pick-up…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter9: Deductions: Employee And Self-employed-related Expenses

Section: Chapter Questions

Problem 23P

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Ryan is self employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,850 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 14,600 miles. Ryan estimates that he drove approximately 1,560 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. What business expense amount can Ryan deduct (if any) for these trips?
Tim used his 2015 F-150 pickup truck to meet with clients and for other business needs. The truck was driven a total of 15,473 miles during 2016 and 3,541 of those miles were for business purposes. Tim kept a meticulous mileage log. Kate’s car was also available for personal use. Tim uses the standard mileage rate for deducting the use of his truck. Tim also paid parking fees of $55 and Tolls of $50 during the business use of the truck. Which of these expenses are deductible in the 2018 tax return?
Allan’s employer purchased a car in March 2020 at a cost of $44,000 GST inclusive and provided the car to Allan on 1 April 2020. Allan garages the car at his home each night during the 2020/21 FBT year. Allan traveled 40,000 kilometers in the car during the year, and the odometer and logbook records show that 10,000 kilometers were for business purposes and 30,000 kilometers were for private purposes. The operating costs of the car (not including deemed depreciation and deemed interest) were $9,000 (GST inclusive). Allan did not make any contribution but provided all the necessary documents for his employer to calculate his FBT liability. Advise Allan and his employer of the tax consequences of this transaction.
Philip, a self-employed salesman, uses his Chevy to travel to potential buyers from his office. During 2020, he drove the car 5,000 miles for business, 3,000 commute miles and 12,000 personal miles. He paid $10,000 two years ago for the car which can be depreciated over 5 years. He has never depreciated the car using any other method than the straight-line method. In the past he has always used the standard mileage rate for car expenses. If his total gasoline and maintenance costs for the car (business and personal) were $2,000, how much may Philip deduct using the standard mileage rate for 2020? How much may he deduct using the actual cost method.
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. He paid $1,850 for gasoline on these trips. Ryan estimates that he drove approximately 2,220 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 18,500 miles (a combination of business and personal travel). What business expense amount can Ryan deduct (if any) for these trips? (Do not found intermediate calculations. Round your final answers to the nearest whole dollar amount.) Maximum deductible amount
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,920 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,900. During the year, he drove his car a total of 16,400 miles (a combination of business and personal travel). Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. b. Ryan estimates that he drove approximately 1,740 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,300 miles. What business expense amount can Ryan deduct (if any) for these trips? Maximum deductible amount
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $2,400 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,300. During the year, he drove his car a total of 19,800 miles (a combination of business and personal travel). (Round your final answers to the nearest whole dollar amount.) a. Ryan can provide written documentation of the business purpose for trips totaling 3,960 miles. What business expense amount can Ryan deduct (if any) for these trips?
Required information [The following information applies to the questions displayed below.] Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $2,080 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $4,800. During the year, he drove his car a total of 12,600 miles (a combination of business and personal travel). Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. Ryan can provide written documentation of the business purpose for trips totaling 2,520 miles. What business expense amount can Ryan deduct (if any) for these trips? Maximum deductible amount
Required information [The following information applies to the questions displayed below.] Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $2,080 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $4,800. During the year, he drove his car a total of 12,600 miles (a combination of business and personal travel). Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. b. Ryan estimates that he drove approximately 1,360 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 840 miles. What business expense amount can Ryan deduct (if any) for these trips? Maximum deductible amount
When Craig began his business, he invested his own 2020 Ford pick-up truck into the business. He originally paid $25,000 for the truck and the current estimated fair market value is $14,000. The truck will exclusively be used for the business. Craig would like to know how much to record the truck for in the accounting software. Research this and support your answer with an excerpt from the IRS publication citing this reasoning. (Hint: Search Publication 551)
Tirta has a home décor consulting business. She drives a 2013 Chevy Sonic (which she only uses for business) to her clients' houses for meetings. The vehicle is fully depreciated and paid off. She keeps excellent records, and for 2021 has the following items: 6,850 business miles, tolls $150, parking $75, gas $885, maintenance $350, registration $100, and insurance $1,500. In her first year claiming the vehicle, she used the actual expense method. For 2021, which rate is her best option, and what would her deduction be?
Frank operates a construction business in Dallas, Texas. On May 1, 2022, Frank purchased a warehouse for his business. The warehouse cost $500,000. In June 2022, Frank purchased some new equipment for the business. The equipment cost $200,000. Frank took $8,000 of depreciation on the warehouse in 2022 and $13,000 in 2023. Frank took $40,000 of depreciation on the equipment in 2022 and $80,000 in 2023. Frank decided to sell the warehouse and equipment so he could upgrade the business. He sold the warehouse for $550,000 and the equipment for $220,000 on December 31, 2023. What result to Frank?

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