Question

Lara uses the standard mileage method for determining auto expenses. During 2020, she used her car as follows: 21,800 miles for business, 4,360 miles for personal use, 6,540 miles for a move to a new job, 2,180 miles for charitable purposes, and 1,090 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:

Answer 1

A. Business $11,881

B. Charitable $305.2

C. Medical $196.2

Step-by-step explanation:

Calculation to determine Lara's deduction for:

a. Deduction for Business= (21,800 miles x .545)

Deduction for Business= $11,881

b. Deduction for Charitable= (2,180 miles x .14)

Deduction for Charitable= $305.2

c. Deduction for Medical=(1,090 miles x .18)

Deduction for Medical=$196.2

Therefore Lara's deduction are:

A. Business $11,881

B. Charitable $305.2

C. Medical $196.2