When one vehicle is used for more than one business purpose the A. Taxpayer must use the actual expense method for the vehicle. B. Taxpayer must use the same method of claiming expenses for all business uses. C. Taxpayer must allocate the expenses based on the ratio of each vehicle's miles to total miles for both vehicles. D. Total mileage for each use would not include the mileage from the other business use.

Question

Frankie

Business

29 November, 10:50

When one vehicle is used for more than one business purpose the A. Taxpayer must use the actual expense method for the vehicle. B. Taxpayer must use the same method of claiming expenses for all business uses. C. Taxpayer must allocate the expenses based on the ratio of each vehicle's miles to total miles for both vehicles. D. Total mileage for each use would not include the mileage from the other business use.

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Answers (1)

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Osvaldo Brady · Answer 1

The correct answer is letter "D": Total mileage for each use would not include the mileage from the other business use.

Explanation:

In case the same vehicle is used for two different businesses, for tax return purposes, the mileage used for each business must be separated and reported isolated in the tax return. The standard mileage rate method is used for this matter. The total mileage driven within the year cannot be entered as the one used for each business individually.