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1Other expenses
Davis Petroleum expenses $2,744
Cellular telephone 715
Continuing education 1,550
Tax preparation 248
5,257
In computing the $1,325 depreciation deduction on Form 4562,
petitioner determined his automobile’s depreciable basis by
applying a business use percentage (79.1 percent) against the
automobile’s reported cost basis ($16,500). Petitioner
determined the business use percentage as follows:
Total business miles driven during year 11,865
Total commuting miles driven during year ---
Total other personal miles driven during year 3,135
Total miles driven during year 15,000
Business use percentage =
11,865 business miles/15,000 total miles = 79.10%
In computing the $5,280 deduction for business use of home
on Form 8829, petitioner applied a business use percentage (80
percent) against the reported cost ($6,600) of keeping up and
running his apartment. Petitioner determined the business use
percentage by dividing his estimate of the area used regularly
and exclusively for business (720 square feet) by the total area
of his apartment (900 square feet).
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Last modified: May 25, 2011