Question

Lara uses the standard mileage method for determining auto expenses. During 2021, she used her car as follows: 18,400 miles for business, 3,680 miles for personal use, 5,520 miles for a move to a new job, 1,840 miles for charitable purposes, and 920 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

Assuming  that all the mileage expenses are allowable  Lara's deduction for are:

• Business $10,304
• Medical $294.4
• Charitable $128.8

Deduction

Using IRS mileage deduction rate for 2021

Deduction for business (56%)

Deduction for business= (18,400 x .56)

Deduction for business=$10,304

Deduction for medical (16%)

Deduction for medical= (1,840 miles x .16)

Deduction for medical=$294.4

Deduction for charitable (14%)

Deduction for charitable= (920 miles x .14)

Deduction for charitable=$128.8

Inconclusion Lara's deduction for are: Business $10,304, Medical $294.4 and Charitable $128.8.

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