Multiple Choice Question 2 of 35 Exam Question 2 Audrey move

Multiple Choice Question 2 of 35 Exam Question 2 Audrey moved 500 miles to begin a new job in 2017 If she used her car to transport her furnishings to the new city, drove 1.000 miles to complete the move. paid $50 in tolls, and spent $150 for gas, what is her maximum deduction for the use of the vehicle to move? A) $200 O B) $220 O C) $430 D) $590 Back Next

Solution

ans)

1) Option ( A)

Maximium deduction for the use of vehicle to move

tolls = 50

gas = 150

Total deductable expenses 200

All of the

expenses you claim must be both reasonable and necessary to your move. Reasonable moving expenses may include the cost of gas or the mileage on your vehicle, rental trucks, short-term storage, and boxes. For a long move, you might include the cost of lodging at a hotel on the way to your new home.

The IRS allots a standard mileage rate that you can use to calculate your travel expenses, but if you prefer, you can keep up with your actual transportation costs and deduct those instead. Eligible travel costs include gas, oil, parking fees, and tolls.

2) option ( C) 12700

The federal standard tax deduction amounts for taxpayers who do not itemize deductions are listed below.

Tax Year 2017 Standard Deduction Table

Filing Status	Standard Deduction
Single	$6,350
Head of Household	$9,350
Married Filing Separately	$6,350
Married Filing Jointly	$12,700
Qualifying Widow(er)	$12,700