Calculate sarah deductible transportation expense

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Question - Sarah purchased a new car at the beginning of the year. She makes an adequate accounting to her employer and receives a $2,400 (12,000 miles * 20 cents per mile) reimbursement in 2013 for employment-related business miles. She incurs the following expense related to both business and personal use:

Gas and Oil - $6,000

Repairs and maintenance - $2,500

Depreciation - $3,000

Insurance - $1,800

Total - $13,300

She also spent $200 on parking and tolls that were related to business. During the year she drove a total of 20,000 miles.

a) Calculate Sarah's deductible transportation expense, using the actual expense method.

b) Calculate Sarah's deductible transportation expense, using the standard mileage method.

Reference no: EM131920508

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