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:

Wall Calendar

A calendar designed to be hung on a wall, displaying months and dates for easy reference.

Status Option

A feature in software or applications that allows users to select or display their current state or progress.

Purple Bar

A graphical element or user interface feature that is distinguished by a purple color, specifics depend on the application.

Seven-day Week

A time measurement system used worldwide, consisting of seven consecutive days.