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  3. a taxpayer owns a tesla, model s, which had a purc

A taxpayer owns a Tesla, Model S, Which had a purchase price of $80,000 on...

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Accounting

  1. A taxpayer owns a Tesla, Model S, Which had a purchase price of $80,000 on March 1, 2018. The car was put into service on that date, and the taxpayer elected to use the standard mileage deduction. The taxpayer has a W-2 job approximately 40 miles from home, round trip, and drives the vehicle into the office 4 days a week.

Additionally, the taxpayer has an interior design service as a sole proprietorship. The interior design jobs often require several trips to the client's home, which is often over 100 miles one way, but only 60 miles from their W-2 office. For tax year 2020, the taxpayer drove 4,200 miles for the interior design business.

Is the following statement true about this scenario?

  • The taxpayer itemizes their deductions and can deduct the $1,200 of personal property tax on their Schedule A.

  • The taxpayer is not required to keep a record since they used the standard mileage rate instead of actual.

  • The taxpayer may include miles from their home office to the client site as business miles.

  • For tax year 2020, the taxpayer can take Section 179 depreciation of $18,100.

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