Malcolm’s employer offers him the option to use the cents-per-mile rule instead of the lease value rule for 2017. Which method will yield the lower gross income for Malcolm? (Use 53.5 cents per mile in your calculations.)
What will be an ideal response?
The lease rate provides less of a taxable income effect. The cents-per-mile is $1,070 = 2,000 miles x $.535 per mile, making it higher by $129.17.
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