Tax clinic:
Volume 5 , No. 20
December 1, 1979
Staff
Publisher and Editor:
Ralph C. Lally II
Editorial Director:
David Pierson
Managing Editor:
Vicki Darlington
International Editor:
David Snook
Editor, Coin Slot
Technical Editor:
Zac Oliver
Correspondents:
Pat Matthews
Roger C. Sharpe
Arthur B. Hollander
Douglas McCallum
Art Direction :
Katey Schwark
Circulation Manager &
Classified Advertising:
Valerie ·cognevich
Typography:
Vickie Lofton
Advertising Representative:
David Pierson
European Representative :
Esmay Leslie
PLAY METER, December 1, 1979.
Volume 5, No . 22 . Copyright 1979 by
Skybird Publishing Company. PLAY
METER ( ISSN 0162-1343) is publish-
ed twice monthly on the 1st and 15th
of the month . Publishing offices: 320
Old Hammond Highway, Metairie,
La . 70005, P. 0. Box 24170, New
Orleans, 70184. Tel. 504 / 838-8025.
Subscription rates : U. S. and Cana-
da - $25; Europe and Japan - $45;
elsewhere - $50. One order subscrip-
tion : 2-9, $20 each; 10-24, $17 each ;
25 or more, $15 each . Advertising
rates available on request . No part of
this magazine may be reproduced
without expressed permission. The
editors are not responsible for
unsolicited manuscripts. Second-
class postage paid at New Orleans
/0113 and additional mailing offices .
Postmaster : Send Form 3579 to
PLAY METER, P. 0 . Box 24170,
New Orleans , La . 70184.
European office : PLAY METER Pro-
motions, " Harescombe" Watford
Road , Northwood Middx. England,
Northwood 29244.
Using a personal auto
for business purposes
QUESTION: How much may I
deduct for use of a personal
automobile for business purposes?
ANSWER : The deduction for use
of a personal automobile for business
purposes may be based on one of
two available methods , each in -
volving an apportionment of the
expenses between business and
personal use . Deductible items for
automobile expenses include the cost
of gasoline , oil, repairs , insurance ,
depreciation, interest to purchase the
car , taxes , licenses , garage rents ,
parking fees , tolls, and other vehicle
expenses .
Expenses incurred for the opera-
tion of an automobile must be
apportioned between business and
personal use . based upon the
number of miles driven for business
purposes as compared to the number
of total miles in a year . If an
automobile is used exclusively for
business purposes , the entire cost of
operation and maintenance may be
deducted .
However . expenses for use of an
automobile for commuting between
the taxpayer's home and principal or
regular place of business are consi -
dered personal expenses , and non -
deductible .
The Internal Revenue Code pro-
vides for two acceptable methods of
computing the expenses allowable
for the operation of an automobile ,
which are as follows :
- Deduction of the actual operating
and fixed expenses of the automo-
bile , including a reasonable amount
of depreciation . The yearly deprecia-
tion deduction must be further
adjusted by the number of months in
business use , divided by the entire
yearly twelve-month period. Actual
expenses must be substantiated with
adequate documentation, such as
receipts, bills of sale , and other
written agreements .
- Deduction of a standard mile -
age rate of 17 -cents per mile for the
first 15,000 miles of business use
each year , and 10-cents per mile for
each succeeding mile , except when
the automobile is fully depreciated or
considered fully depreciated in a
prior year , then it is limited to
10-cents per mile . This method may
be used instead of actual operating
costs . and parking fees , tolls and the
like incurred during business use still
are deductible in addition to the
standard mileage rate .
Adequate records must be main -
tained to establish the actual business
miles the automobile was driven .
Approximations and estimates are
not considered acceptable .
The IRS allows the taxpayer a
choice of either method , and allows
taking the maximum of the two
methods of expense . Records , how-
ever, should be carefully kept to
facilitate the maximum allowable
deduction .
-By
Comprehensive
Accountin']
Corp . of Aurora, Illinois . Compre -
hensive provides a bookkeeping,
accounting, and tax service to over
14 ,000 business clients each month
through a nationwide network of
more than 140 franchised offices.
Calendar
December 3-12
Ohio Music and Amusement Asso-
ciation Digital Mechanics School ,
Columbus , Ohio
January 17-19
German Coin Machines Manu -
facturers (VDAI), exhibition grounds ,
Frankfort , Germany
January 18-20
Music Operators of Minnesota , Min -
neapolis , Minnesota
Oregon
January 25-26
Amusement and
Music
Operators
Association ,
Beach , Portland , Oregon
Jantzen
March20-22
Amusement Operators Expo .. Fair-
mont Hotel , New Orleans , Louisiana
May 16-18
Music and Amusement Association
annual convention , Host Farm ,
Lancaster , Pennsylvania
June 5-7
Music Operators of Texas , El Paso ,
Texas