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Problem - 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 2017 for employment-related business miles. She incurs the following expenses 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 20,000 miles.
What are the possible amounts of Sarah's deductible transportation expenses?
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