michelle is an employee who must use her personal automobile for employment related 413590

Michelle is an employee who must use her personal automobile for employment related business trips. During the current year, Michelle drives her car 60% for business use and incurs the following total expenses (100% use of car): Gas and oil $9000 Repairs $1400 Depreciation $4700 Insurance and license fees $1300 Parking and tolls business related $100 Total $16,500 Michelle drives 24,000 business miles during the current year and receives a reimbursement of 40 cents per mile from her employer. Assume that an adequate accounting is made to Michelle’s employer. A. states $5020 of the unreimbursed expenses are deductible from AGI, computed as follows: 24,000 miles unreimbursed at current IRS mileage rate which is 56.5 per mile, plus parking and tolls $100=1,346,100 total expenditures, yes? then minus reimbursement 24,000*.40 mile = 9600 and so 1,356,100 9600=1,346,500 deductible from AGI, yes? B. Under the actual cost method, $340 is deductible from AGI, computed as follows: Expenses excluding parking and tolls $29,000*60% business use=17,400 plus parking and tolls $100=17,500 minus employer’s reimbursement amount…..I don’t see what they’d reimbuse so I don’t know the amount. Do you know? Right now I have a deduction amount of 17,500 Question 1 What amount is deductible (before the 2% nondeductible floor) if Michelle elects to use the standard mileage method? Question 2 What amount is deductible (before the 2% nondeductible floor) if Michelle uses the actual cost method? Question 3 Can taxpayers switch back and forth between the mileage and actual methods each year?