Reference no: EM133143921
Question - Alyssa is self-employed and uses her personal automobile in connection with her business. During 2020, Amelie drove her car a total of 23,000 miles. Her business log shows that she drove 13,800 miles for business purposes. During 2020, Amelie incurred the following actual expenses based on 100% use, that is, 23,000 total miles: (The standard mileage rate method permits a deduction based on a mileage rate of 57.5 cents per mile for the year 2020.)
Gas and oil $8,900
Repairs and maintenance 2,900
Depreciation 6,100
Insurance 1,520
Licenses and fees 350
Total $19,770
Required -
a. Compute Alyssa's deduction if she uses the actual cost method.
b. Compute Alyssa's deduction if she uses the standard mileage method.
c. Assume Alyssa used the standard mileage method in 2020. In addition to the automobile expenses, she made several business trips and incurred the following travel expenses while away from home overnight:
Airfare $4,000
Hotel 1,910
Meals 790
Taxi fees and tips 270
Total $6,970
None of the above expenses were personal in nature. What are Alyssa's deductions in 2020 after all limitations?
d. Would Alyssa's deduction in 2020 be for AGI or from AGI?