A taxpayer own a Tesla model S which hat I purchase price of $80,000 on March 1st of 2020 the car was put into service on that date and the taxpayer elected to use the standard mileage deduction the taxpayer has a W-2 job approximately 40 miles from home round trip and drive the vehicle into the office 4 days a week additionally the taxpayer has an interior design service as a sole proprietorship the interior design job often required several trips to clients home which is often over 100 miles one way but only 60 mi from their W2 office for tax year 2023 the taxpayer drove 4200 miles for the interior design business is the following statement true about the scenario.    1. Taxpayer must substantiate business miles with a log book indicating mild date and business purposes.   2. For the 2023 tax year the taxpayer can select section 179 depreciation of 18,100.    3. But depreciation has been on the Tesla will capped at 16,000 for tax year 2023.   4. The taxpayer may include miles from their home office to the client site as a business miles.

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 35P: Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that...
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A taxpayer own a Tesla model S which hat I purchase price of $80,000 on March 1st of 2020 the car was put into service on that date and the taxpayer elected to use the standard mileage deduction the taxpayer has a W-2 job approximately 40 miles from home round trip and drive the vehicle into the office 4 days a week additionally the taxpayer has an interior design service as a sole proprietorship the interior design job often required several trips to clients home which is often over 100 miles one way but only 60 mi from their W2 office for tax year 2023 the taxpayer drove 4200 miles for the interior design business is the following statement true about the scenario. 

 
1. Taxpayer must substantiate business miles with a log book indicating mild date and business purposes.
 
2. For the 2023 tax year the taxpayer can select section 179 depreciation of 18,100. 
 
3. But depreciation has been on the Tesla will capped at 16,000 for tax year 2023.
 
4. The taxpayer may include miles from their home office to the client site as a business miles.
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