Mort is employed as brick layer. on the weekends, he also does some landscaping for several businesses and received five forms 1099-misc with amounts in box 7. he uses his van in his landscaping business to pick up supplies at various garden shops. his written record of his mileage shows that he drove the van 910 miles for this purpose. he used the van 25% for business in 2015 (910 business miles divided by 3,640 total miles). in 2015, mort paid $400 of interest on the van loan and he paid personal property tax of $200. how much of mort's loan interest and personal property tax can he deduct on his schedule c?

Question

Business

Blackjack

17 February, 16:06

Mort is employed as brick layer. on the weekends, he also does some landscaping for several businesses and received five forms 1099-misc with amounts in box 7. he uses his van in his landscaping business to pick up supplies at various garden shops. his written record of his mileage shows that he drove the van 910 miles for this purpose. he used the van 25% for business in 2015 (910 business miles divided by 3,640 total miles). in 2015, mort paid $400 of interest on the van loan and he paid personal property tax of $200. how much of mort's loan interest and personal property tax can he deduct on his schedule c?

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Answers (1)

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Paul Leonard · Answer 1

The answer is "$100 of interest and $50 of the personal property tax".

Mort paid $400 of interest on the van loan

and he paid personal property tax of $200

Now,

Interest = 25% of $400

=25/100 x 400 = 0.25 x 400

Interest = $100

personal property tax = 25% of $200

=25/100 x 200 = 0.25 x 200

personal property tax = $50