Question

11. ( 2 points)rick is a business advisor who lives in escondido, california, and works in san diego. he makes a 70-mile round trip commute to his job every workday, for a total of 14,000 miles a year. in addition, he drives 100 miles per month to visit clients from his office in san diego. if rick uses the standard mileage method for computing automobile expenses, what is his automobile expense deduction for 2022?

Answer 1

Rick's automobile expense deduction for 2022 is calculated by multiplying the total annual business miles (15,200) by the standard mileage rate (58.5 cents per mile) for that year, resulting in a deduction of $8,892.

Step-by-step explanation:

To calculate Rick's automobile expense deduction for 2022, we first need to add his annual commuting miles to the additional miles driven to visit clients. Rick commutes 14,000 miles annually for work and drives an extra 100 miles per month for client visits. Since there are 12 months in a year, these client visit miles add up to 1,200 miles annually.

Therefore, Rick's total annual business miles driven are 14,000 miles (commute) + 1,200 miles (client visits) = 15,200 miles. To find the deduction amount, we need to multiply these total business miles by the standard mileage rate for 2022 set by the IRS. Assuming the 2022 standard mileage rate is 58.5 cents per mile, Rick's deduction would be 15,200 miles * $0.585/mile = $8,892.