Question

In 2022, Jay drove his car 17,000 miles during the year. Each month, he drove 1,050 miles for business (so 12,600 business miles for the year). If Jay takes the standard mileage rate and has no other additions, what would be his car and truck expenses on his Schedule C?

a) $5,250
b) $8,820
c) $12,600
d) $17,000

Answer 1

Jay's deductible car and truck expenses on his Schedule C using the standard mileage rate of 58.5 cents would be $7,371 for 12,600 business miles in the year 2022, which is not listed in the provided options.

Step-by-step explanation:

In 2022, Jay drove a total of 17,000 miles, out of which 12,600 miles were for business purposes. To calculate his car and truck expenses on his Schedule C using the standard mileage rate, we need the IRS standard mileage rate for 2022.

Assuming the standard mileage rate for 2022 is 58.5 cents per mile, which is the rate for business miles driven from July 1, 2022, through December 31, 2022 (for the first half of the year, it was 56 cents), we would calculate Jay's deductible expense by multiplying 12,600 business miles by the standard mileage rate of 58.5 cents.

12,600 miles x $0.585/mile = $7,371

Therefore, Jay's car and truck expenses on his Schedule C would be $7,371 for the year 2022. The correct answer to the question would be none of the provided options (a-d), since $7,371 is not listed amongst them.