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In 2017 Jessica bought a new truck for $45,000 to use 80% for her sole proprietorship

Accounting Nov 09, 2020

In 2017 Jessica bought a new truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12,000 in 2017, 14,500 in 2018, and 13,000 in 2019. a. If Jessica uses the standard mileage method, how much may she deduct on her 2019 tax return (miles were incurred ratably throughout the year)? b. What is the deduction for 2019 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume $179 was not elected in the year of purchase.

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