f.
Major overhaul
g. Personal property taxes on car
h. Tolls
8-28 Transportation Expenses. Indicate the amount, if any, deductible by the taxpayer in
each of the following cases. (Ignore the rules on miscellaneous itemized deductions.)
a. R owns and operates his own advertising agency as an independent contractor. He
works in downtown Denver, but chooses to live in the mountains 90 miles away.
During the year, he spent $2,700 for transportation expenses to and from work.
b. Q, a high school basketball coach, liked to scout his opposition. On one Friday
afternoon, he left school and drove 40 miles to attend the game of the team he
played next. On the way, he stopped for a meal ($5). He watched the game and
returned home.
c. R, a carpenter, is an independent contractor. He commutes to work in a truck.
He drives the truck in order to carry the tools of his trade. During the year, R's
total transportation costs were $5,000. R estimates that his costs of transportation
without the tools would have been $4,000, since he otherwise would have taken
public transportation.
d. G, a self-employed attorney, works downtown. She is on retainer, however, with
a client who has offices two miles from her home. G often stops at the client's
office before going to work. The distance between these locations is as follows:
home to office, 20 miles; home to client, 2 miles; and client to office, 22 miles.
During the year, G drove directly to work 180 days and via the client's office
50 days.
