Expand mobile version menu
  Skip to main content

Real-Life Activities

Real-Life Math

You're a notary who serves a rural area. Therefore, you do a lot of driving to different towns and villages to notarize documents.

For income tax purposes, you need to know how much you drive your car for work. For example, if you drive it half the time for personal use, and half the time for work, you can claim half your car-related expenses as a business expense. This will reduce how much income tax you pay.

You keep track of your driving for 2 months. Each week, you make note of how much driving you did for work.

Week 1: 850 miles
Week 2: 600 miles
Week 3: 920 miles
Week 4: 1,020 miles
Week 5: 730 miles
Week 6: 710 miles
Week 7: 910 miles
Week 8: 860 miles

Using the above numbers, answer the following questions.

  1. How much work-related driving, in total, did you do?
  2. If your car's odometer shows 9,200 miles for those 2 months, what percentage of your driving was work related?
  3. If your car expenses total $1,450, how much of it can you claim as a business expense?

Contact

  • Email Support

  • 1-800-GO-TO-XAP (1-800-468-6927)
    From outside the U.S., please call +1 (424) 750-3900

Support


Powered by XAP

OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.