Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000 in 2021 and is not a ero-emission vehicle, with maximum CCA claimed in that year. Assume that the automobile was eligible for the AccII. The purchase was financed with a bank loan of $37,000. In 2022, the interest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2022 operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for 2022?
Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000 in 2021 and is not a ero-emission vehicle, with maximum CCA claimed in that year. Assume that the automobile was eligible for the AccII. The purchase was financed with a bank loan of $37,000. In 2022, the interest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2022 operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for 2022?
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 28P
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Jean Brochet uses an automobile in a business he carries on as a sole proprietor. The automobile cost $53,000 in 2021 and is not a ero-emission vehicle, with maximum CCA claimed in that year. Assume that the automobile was eligible for the AccII. The purchase was financed with a bank loan of $37,000. In 2022, the interest on this loan totaled $4,440. The automobile is used exclusively for business purposes, with the 2022 operating expenses totaling $7,500. What is the maximum automobile deduction that can be claimed for 2022?
Note: The correct answer is $16,100 but I don't know how solve the problem. Please help me out!
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