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?
Manji
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. 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
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
Domestic
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?
Curt is self-employed as a real estate salesman and drives his car frequently to take clients to see homes for sale. Curt drove his car 20,000 miles for business purposes and 25,000 miles in total. His actual expenses for operating the auto including depreciation are $10,000 since he drove it so much during the year. Curt has used the actual cost method since he started his business in 2015. How much is Curt’s deductible auto expense for the year?
John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. (i) John incurred legal expenses as he was sued for false advertising. (ii) John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000. (iii) John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs him $1,500. (iv) John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use the footpath. Required: With reference to relevant legislation and case law advise John on the assess ability and/or deductibility of above events.

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