Alvin Is a Self-Employed Sound Technician Who Reports on the Cash

question 91

Essay

Alvin is a self-employed sound technician who reports on the cash method and calendar year. Alvin has a shop in Austin, Texas, but he spends much of his time away from his shop traveling to and from various concerts around the country. Alvin leases a truck to move his equipment around the country, and this year, he spent $12,000 in lease payments and paid $18,000 for gas, oil, and repairs. Alvin keeps records of his personal use of the truck and he estimates that 6,000 of the total 36,000 miles put on the truck this year were for personal trips. What amount of these expenses may Alvin deduct as business expenses?

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Definitions:

Import Quotas

Limitations set by a government on the number or value of goods that can be imported into a country within a specified time frame.

Current Drinkers

Individuals who consume alcohol and have done so recently, within a specific timeframe defined by a study or survey.

18th Amendment

An amendment to the United States Constitution that prohibited the manufacture, sale, and transportation of alcoholic beverages, later repealed by the 21st Amendment.

Alcohol Consumption

Refers to the intake of beverages containing ethanol, which can have varying effects on health and behavior.