Question

According to Ian Redpath and Brian O'Sullivan, which of the following is correct regarding the depreciation element of the standard mileage rate?

	A.	It cannot be used to decrease basis upon sale or trade-in of the vehicle.
	B.	It must be used to decrease basis upon sale or trade-in of the vehicle.
	C.	It may be used to increase basis upon sale or trade-in of the vehicle.
	D.	It must be used to increase basis upon sale or trade-in of the vehicle.

Answer 1

Ans:c

Reason: as the rate increases for every year (i.e1%) .

The standard mileage rate changes regularly to keep up with inflation. The 2018 rate for miles driven is 54.5 cents per mile for business purposes, 14 cents per mile for charitable purposes and 18 cents per mile for medical and moving purposes. These rates are each up one cent from the 2017 rates.