Question

Lara uses the standard mileage method for determining auto expenses. During 2020, she used her car as follows: 14,400 miles for business, 2,880 miles for personal use, 4,320 miles for a move to a new job, 1,440 miles for charitable purposes, and 720 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for:

A. Business?B. Chartible?C. Medical?

Answer 1

A. $ 7876.8

B. $ 201.6

C. $ 122.4

Step-by-step explanation:

As per the Internal revenue Service or the IRS, the standard rates of mileage for the year 2020 is :

Automobile -- 54.5

Charity ---- 14

Medical ---- 17

A. Lara's automobile deduction for business is = 14,400 miles x 0.547

= $ 7876.8

B. Lara's expenses for the charitable contribution deduction is

= 1,440 miles x 0.14

= $ 201.6

C. Lara's expenses for her medical deduction is = 720 miles x 0.17

= $ 122.4