Asked by Derin Jabour on Jun 03, 2024
Verified
Which of the following statements is false with respect to the standard mileage rate?
A) The standard mileage rate encompasses depreciation.
B) The taxpayer can have an unlimited number of autos and use the mileage rate.
C) Section 179 cannot be used on a standard mileage rate auto.
D) The standard mileage rate cannot be used on a taxi.
Standard Mileage Rate
A fixed rate set by the IRS that taxpayers can use to calculate deductible vehicle expenses for business, charitable, medical, or moving purposes.
Depreciation
Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life, representing wear and tear, deterioration, or obsolescence of the asset.
Section 179
A tax code provision allowing businesses to deduct the full purchase price of qualifying assets financed or purchased during a tax year, subject to limits.
- Investigate the employment of residential and automotive assets by businesses for tax reasons, including an overview of permissible deductions and their limits.
Verified Answer
Learning Objectives
- Investigate the employment of residential and automotive assets by businesses for tax reasons, including an overview of permissible deductions and their limits.
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