Final Answer:
Ella's deduction for the year, using the automatic mileage method and working 240 days in 2016, is $4,032.
Step-by-step explanation:
Ella's deductible mileage can be calculated by multiplying the total business miles driven during the year by the standard mileage rate set by the IRS. The relevant distances are:
1. Home to regional office: 10 miles
2. Regional office to sales outlet 1: 13 miles
3. Sales outlet 1 to sales outlet 2: 11 miles
4. Sales outlet 2 to sales outlet 3: 9 miles
5. Sales outlet 3 to home: 15 miles
The total business miles are 58 miles (10 + 13 + 11 + 9 + 15). For 240 working days in 2016, Ella's total business miles for the year would be 13,920 miles (58 miles/day * 240 days).
For the tax year 2016, the IRS standard mileage rate was 54 cents per mile. Therefore, Ella's deductible mileage expense would be $7,516.80 (13,920 miles * $0.54/mile).
However, it's important to note that the IRS limits the deductible mileage to business-related travel only. Ella's daily commute from home to the regional office is considered a personal expense and is not deductible. Her daily round trip for commuting is 20 miles (10 miles each way), and with 240 working days, the non-deductible commuting miles amount to 4,800 miles (20 miles/day * 240 days). Subtracting this from the total business miles, Ella's deductible mileage becomes 9,120 miles (13,920 miles - 4,800 miles).
Therefore, Ella's final deduction for the year using the automatic mileage method is $4,032 (9,120 miles * $0.54/mile).