Question

Ryan estimates that he drove approximately 2,260 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,300 miles. Ryan uses the actual expense method. What business expense amount can Ryan deduct (if any) for these trips

Answer 1

Answer: $1,355.41

Explanation:

Business expense deductible:

= Adjusted Cost of gasoline + Depreciation

As Ryan can only provide documentation for 1,300 miles, this is what the deductible will be based on:

= (Cost of gasoline * Documented miles for business / Estimated miles for business) + (Depreciation * Documented miles for business / Total miles travelled)

= (1,920 * 1,300 / 2,260) + (3,900 * 1,300 / 20,200)

= $1,355.41