Applied Cost

You don't know the actual cost, so you're making one up. You're applying your creativity. Think: car mileage. You have no idea what it actually costs you to drive your 1997 Ford Taurus the 22 miles back and forth to work everyday. You bought it. You have gas, maintenance, insurance, and a ticket every month or two.

So you make up a per mile cost (Okay, we'll be generous...you estimate a cost) and apply that metric when you seek that deduction on your taxes.