Question

To apply expenses of more than one vehicle to a single business use __________.

a. Only the actual expense method may be used.
b. Deduct the expenses using the same method for both.
c. When using the standard mileage, combine the mileage of all vehicles into one entry.
d. Make a separate entry for each vehicle.

Answer 1

Answer:

The correct answer is letter "C": When using the standard mileage, combine the mileage of all vehicles into one entry.

Explanation:

The standard mileage is a rate set by the Internal Revenue Service (IRS) for taxpayers to consider deduction expenses of mileage driven due to business activities. When the taxpayer has more than one business and different vehicles, the sum of the mileage used for business purposes is added in one amount to be considered for deduction.