Question

Lara uses the standard mileage method for determining auto expenses. During 2018, she used her car as follows: 11,600 miles for business, 2,320 miles for personal use, 3,480 miles for a move to a new job, 1,160 miles for charitable purposes, and 580 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: If required, round your answers to the nearest dollar.

a. Business?

b. Chartible (162 is correct answer)

C. Medical?

Answer 1

Answer:

a. $6,322

b. $162

c. $104

Explanation:

In this question, we apply the standard rate for mileage for each case in 2018 i.e shown below:

a. For business:

= Number of miles for business × prescribe rate

= 11,600 miles × 54.5%

= $6,322

b. For charitable

= Number of miles for charitable × prescribe rate

= 11,60 miles × 14%

= $162

c. For Medical:

= Number of miles for business × prescribe rate

= 580 miles × 18%

= $104