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?

---

Definitions:

Neurogenic Bladder

A bladder dysfunction caused by neurological damage, leading to problems with storage or voiding of urine.

Cognitive Impairment

A decline in memory, language, thinking, or judgment that may impact everyday activities.

Spinal Cord Injury

Damage to the spinal cord that results in loss of function, such as mobility or sensation, below the level of the injury.

Diaphoretic

Characterized by profuse sweating, often as a symptom of illness or a response to medication.