Jon uses his automobile 80% for his business that he operates as a sole proprietorship. He drove a total of 10,000 miles (8,000 business,2,000 personal) and paid the following amounts for his vehicle:Parking at client's officesAuto InsuranceAuto club DuesOil Changes and Tune-upsRepairs$ 1801,6001802801,160Depreciation allowable2,050Fines incurred while traveling for business 320Gasoline2,200a. What is Jon's 2021 deduction for using his car if he uses the automatic (standard milleage) method?The IRS standard mileage rate for 2021 is.56 cents per mile.O $4,480Ⓒ$7,970O $4,660$7,650$6,310

The standard mileage rate, recognized as the default cost per mile established by the IRS, applies…

Answered: Jon uses his automobile 80% for his…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below] Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 1,060 Advertising expense Mortgage interest Property taxes 640 4,500 1,290 1,200 5) Repairs & maintenance Utilities Depreciation 12,300 During the year, Natalie rented out the condo for 89 days, receiving $14,000 of gross income. She personally used the condo for 38 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.) a. What is the total amount of itemized deductions Natalie may deduct in the current year…
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