Question

Ryan is self-employed. this year ryan used his personal auto for several long business trips. ryan paid $1,590 for gasoline on these trips. his depreciation on the car if he was using it fully for business purposes would be $4,800. during the year, he drove his car a total of 18,800 miles (a combination of business and personal travel). (do not round intermediate calculations. round your final answer to the nearest dollar amount.)
a. ryan can provide written documentation of the business purpose for trips totaling 3,760 miles. what business expense amount can ryan deduct (if any) for these trips?

Answer 1

The expenses that Ryan can deduct for the business trips he had is calculated by summing up the expenses he had with regards to gasoline and the depreciation.

Cost of gasoline = (3,760 miles)($1,590/18,800 miles) = $318

Cost of depreciation = $4,800

Adding the costs will give us an answer of $5118.

Answer: $5,118