Respuesta :
Answer:
$7,636
Explanation:
During the year, Pablo keeps the following record of his travel:
Miles Home to office 864
Office to home 864
Home to local clients to home 10,630
Home to out of town clients to home 2,650
If he used the standard mileage rate, the amount that can be deducted as a business expense will exclude the commute from home to office and office to home because:
You can claim the business-miles deduction for trips from your workplace to job sites, meetings with customers and for business errands but the commute from home to work is not deductible.
Secondly, Beginning January 1, 2020, the standard mileage rates for the use of a car (van, pickup or panel truck) will be: 57.5 cents per mile for business miles driven, down from 58 cents in 2019.
Therefore the correct computation will be:
Home to local clients to home 10,630 x $0.575 = $6,112.25
Home to out of town clients to home 2,650 x $0.575 = $1,523.75
Total amount to be deducted as business expense = ($6,112.25 + $1,523.75) = $7,636
Answer: $7,636
Explanation:
Pablo's travel records are as follows;
Distance in Miles :
Home to office = 864
Office to home = 864
Home to local clients to home = 10,630
Home to out of town clients to home = 2,650
Pablo is reimbursed for business expenses. Business expenses coukd be explained as cost incurred based on assignments or errands carried out for the organization. It doesn't include the individual's personal expenses while not on organizational duty.
Therefore from the data provided, business expenses only include;
Distance in miles :
Home to local clients to home = 10,630
Home to out of town clients to home = 2,650
Using the 2020 standard mileage rate which is : 57.5 cent per mile, equivalent to $0.575
Reimbursable business expense :
Home to local clients to home 10,630 x $0.575 = $6,112.25
Home to out of town clients to home 2,650 x $0.575 = $1,523.75
Total amount to be deducted as business expense = ($6,112.25 + $1,523.75) = $7,636
