Paola works as a sales executive for Avis rental cars.

Paola works as a sales executive for Avis rental cars.

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Paola works as a sales executive for Avis rental cars. She receives several fringe
benefits including group health insurance for her family. She purchased a new
Mercedes from Avis for $40,000 when the FMV was $55,000. The purchase cost
for Avis was $40,000. Avis’s average gross profit percentage is 25%. Paola’s
company offers free group term life insurance for all their employees. Paola
received $500,000 in life insurance coverage in 2019. Paola drives to various sales
meetings away from her primary place of work totaling 7,000 business related
miles. The remainder of her 18,000 miles driven were commuting or personal.
Paola was not reimbursed for these mileage expenses and like her husband she
plans to use the standard mileage deduction, if expense is deductible

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