Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000in 2022 and is not a zero-emission vehicle, with maximum CCA claimed in that year. Assume that theautomobile was eligible for the Accll. The purchase was financed with a bank loan of $37,000. In 2023, theinterest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2023operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for2023?$19,875.$16,760.$16,890.$24,665.

An automobile used in a business may be eligible for some deductions from the business's revenue.…

Answered: Jean Brochet uses an automobile in a…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 43P

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Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was 52,000. He incurred the expenses in June and July 2019. Under the following circumstances, what can Terry deduct in 2019? a. Terry was in the hardware store business and did not acquire the two hardware stores. b. Terry was in the hardware store business and acquired the two hardware stores and began operating them on October 1, 2019. c. Terry did not acquire the two hardware stores and was not in the hardware store business. d. Terry acquired the two hardware stores but was not in the hardware store business when he acquired them. Operations began on October 1, 2019.
Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that repairs automobiles. In late December 2019, the company repaired Samuel Mosleys car and charged him 1,000. Samuel did not think the problem had been fixed and refused to pay; thus, Trip refused to release the automobile. In early January 2020, Trip made a few adjustments and convinced Samuel that the automobile was working properly. At that time, Samuel agreed to pay only 900 because he did not have the use of the car for a week. Trip said fine, accepted the 900, and released the automobile to Samuel. An IRS agent thinks Trip, as an accrual basis taxpayer, should report 1,000 of income in 2019, when the work was done, and then deduct a 100 loss in 2020. Prepare a memo to Susan Apple, the treasurer of Trip, with the recommended treatment for the disputed income.
Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000 in 2021 and is not a ero-emission vehicle, with maximum CCA claimed in that year. Assume that the automobile was eligible for the AccII. The purchase was financed with a bank loan of $37,000. In 2022, the interest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2022 operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for 2022? Note: The correct answer is $16,100 but I don't know how solve the problem. Please help me out!
Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000 in 2021 and is not a ero - emission vehicle, with maximum CCA claimed in that year. Assume that the automobile was eligible for the Accll. The purchase was financed with a bank loan of $37,000. In 2022, the interest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2022 operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for 2022? a. 24665 b. 19875 c. 16100 d . 16890
None
On June 28, 2020, Ms. Annie Rawlings purchased an automobile to be used exclusively in her unincorporated business. The cost of the automobile was $49000, before GST and PST. She finances a part of the purchase price and, as a consequence, has financing charges for the period June 28, 2020 to December 31, 2020 of $3920. Ms. Rawlings has decided not to deduct any CCA this year. Ignoring any deduction for CCA, how much other costs can Ms. Rawlings deduct in 2020 with respect to this vehicle acquisition?
On June 25, 2020, Ms. Annie Rawlings purchased an automobile to be used exclusively in her unincorporated business. The cost of the automobile was $51000, before GST and PST. She finances a part of the purchase price and, as a consequence, has financing charges for the period June 25, 2020 to December 31, 2020 of $4280. Ms. Rawlings has decided not to deduct any CCA this year. Ignoring any deduction for CČA, how much other costs can Ms. Rawlings deduct in 2020 with respect to this vehicle acquisition? Round to the nearest dollar. Do NOT w commas, dollar signs, or decimals in your response.
Jose purchased a vehicle for business and personal use. In 2022, he used the vehicle 20,000 miles (80% of total) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $1,800 in interest and $175 in property taxes on the car. Required: Calculate the total business deduction related to the car. Do not round intermediate calculations. Round your final answer to the nearest whole number. Schedule C Schedule A Total Deduction
Cole purchased a car for business and personal use. In 2022, he used the car 60% for business (13,000 total use miles – ratably through the year) 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?
Cole purchased a car for business and personal use. In 2022, he used the car 60% for business (13,000 total use miles – ratably through the year) 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? Multiple Choice $8,721. $1,116. $4,719. $5,835.
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Jos is a Sales Manager. He uses his own car to travel to various locations. He acquired the car on 1 October 2021 for $60,000. The acquisition cost was funded entirely by a loan at an interest rate of 15%. He has determined that the depreciation deduction on the car would be $2,300 for the year. In addition, Jos incurred the following expenses during the year: Registration and insurance = $2,000; Repairs and maintenance = $1,000; and Oil and fuel costs = $1,500. For the period 1 October 2021 to 30 June 2022, Jos estimates that the car travelled 15,000 kilometres, 12,000 of which were for business purposes. You may assume that Jos has maintained all necessary records and a logbook. Required: Calculate Jos's deduction for car expenses under the two methods (cent per kilometre rate 0.72 and logbook) in Div 28 of Income Tax Assessment Act 1997. Assume that depreciation has been adjusted for part-year use and the impact of the car limit

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Jean Brochet uses an automobile in a busi in 2022 and is not a zero-emission vehicle,