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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
In 2012, Micah Johnson (SSN 000-22-1111) incurs the following unreimbursed employee
business expenses:
Airplane and taxi fares $ 4,000
Lodging away from home 5,000
Meals while away from home 1,000
Automobile expenses (related to 100% of the use of his personal automobile):
Gasoline and oil 8,500
Repairs 1,000
Insurance 900
Depreciation 1,775
Parking and tolls (includes only business use) 100
Total 22,275
Johnson receives a $7,800 reimbursement for the travel expenses. He did not receive
any reimbursement for the auto expenses. He uses his personal automobile 80% for
business use and placed his current automobile in service on October 1, 2008. Total
business miles driven during the year (evenly throughout the year) amount to 26,400,
his commuting miles in 2011 amount to 2,000, and other personal miles amount to
4,600 miles. Johnson’s AGI is $60,000, and he has no other miscellaneous itemized
deductions.
a. Calculate Johnson’s expense deduction using the 2011 Form 2106 (Employee Business
Expenses) based on actual automobile expenses and other employee business expenses.
b. Calculate Johnson’s expense deduction for 2011 using the standard mileage rate
method and other employee business expenses. (Assume that none of the restrictions
on the use of the standard mileage rate method are applicable.)
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