Jackson uses his automobile 90% for business and during 2012 drove a total of 14,000 miles. Information regarding his car expenses is listed below.
|
Business parking |
$ 140 |
|
Auto insurance |
1,300 |
|
Auto club dues (includes towing service) |
180 |
|
Toll road charges (business related) |
200 |
|
Oil changes and engine tune ups |
210 |
|
Repairs |
160 |
|
Depreciation allowable |
2,850 |
|
Fines for traffic violations (incurred during |
|
|
business use) |
320 |
|
Gasoline purchases |
2,800 |
What is Jackson’s deduction in 2012 for the use of his car if he uses:
a. The actual cost method?
b. The automatic mileage method?