Application of all relevant limitations


Jordan, an employee, drove his auto 20,000 miles this year, 15,000 to meetings with clients and 5,000 for commuting and personal use. The cost of operating the auto for the year was as follows:

Gasoline and repairs $7,000
Insurance 1,000
Depreciation 4,000

Jordan submitted appropriate reports to his employer, and the employer paid a reimbursement of $ .50 per mile. Jordan has used the actual cost method in the past. Jordan's AGI is $50,000. What is Jordan's deduction for the use of the auto after application of all relevant limitations?

A) $1,500

B) $500

C) $1,000

D) $8,000

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Accounting Basics: Application of all relevant limitations
Reference No:- TGS045804

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