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:

Western Europe

A region comprising the western part of Europe, known for its advanced economies, democracies, and rich cultural history.

Louis XV

King of France from 1715 to 1774, whose reign is often noted for the decline in royal authority that paved the way for the French Revolution.

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Systematic changes and improvements made to public education policy and practices, often aimed at increasing accessibility, quality, and relevance of education in response to societal needs.

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