ivering catered meals to customers. You have asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate Bobby’s deduction for transportation costs. Bobby has responded by saying, “Well, I don’t really keep track
ivering catered meals to customers. You have asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate Bobby’s deduction for transportation costs. Bobby has responded by saying, “Well, I don’t really keep track
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bobby Reynolds, a new client of yours, is a self-employed caterer in Santa Fe, New Mexico.
Bobby drives his personal van when delivering catered meals to customers.
You have asked him to provide the amount of business miles driven using his vehicle.
You are planning on using the standard mileage method to calculate Bobby’s deduction for transportation costs.
Bobby has responded by saying, “Well, I don’t really keep track of my miles. I guess I drove around 3,000 miles last year for the business.”
What would you say to Bobby?
Please give a response as if you are a professional tax accountant.
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