Running Errands? It's Deductible!

January 30, 2013


It’s always great to pay fewer small business taxes each year. One of the most common ways to do this for your small business is to deduct your transportation cost.

Instructions

1 Keep a ledger of your business mileage. It's crucial that you have a work-related mileage recorded. Having all 12 months is ideal, but one month will be enough of a sample to get an idea of what your yearly work-related mileage will be.

2 If you only have one month, then you take your monthly mileage total and multiply that number by 12. This will give you a rough estimate of what your yearly business mileage is. If you have a log for each month, then you take the total of the 12 months and multiply it by the year’s allowance. For 2012  & 2013 the allowance is $.555 and $.565 per mile.

3 Look at your receipts and figure out how much you spend each month on gas, car payments, vehicle maintenance and any other car-related expenditures. Add all of these numbers together and multiply the result by 12. Then, estimate how much of that usage is work-related. For example, if you think that half of your car usage is for work-related endeavors, then 50 percent of your car expenses are deductible on your taxes. Fifty percent is the maximum amount you can deduct with this method.

4 Take your yearly mileage total and multiply it by 0.48 to see how much mileage you can deduct. Compare that number with the estimated amount of your deductible work-related car expenses and choose whichever number nets you a bigger tax deduction.


Get more: How To Keep Your Business From Becoming TheIRS!
 

When Eating Out Is Tax Deductilble

January 10, 2013

Meals & Entertainment 50% versus 100%

As you record and document the expenses in your business, a common sticking point occurs when trying to determine meal and entertainment expenses that are nondeductible, 50 percent deductible and 100 percent deductible. To help ease recordkeeping for both you and your employees, consider establishing these three separate expense categories within your company's expense report.

Documenting Expenses

In order to deduct business meal and entertainment ex...


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It's Deductible - Credit Card Interest

January 9, 2013


Credit card interest as business expense
 

Credit card interest is never deductible for individuals, but it’s a different story when a business is involved.

“Business interest,” meaning interest paid on any loan taken out for business purposes, is considered a legitimate business expense, and that includes interest on credit cards. However, the debt must be related to a trade or business activity. You can’t use your company credit card for personal expenses and then deduct the int...


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25 Days Left In The Year To Make More Money!

December 6, 2012

Generate More Cash for Your Business Quickly

We are in the season for giving!  Why not receive more cash for your business.  More gifts are given in cash, gift certificates, and gift cards.  They are purchased more this time of year than all other holidays combined.

Here are some quick tips to generate some quick cash for your business with gift certificates:

  • ·        Offer printed and virtual gift certificates.
  • ·        Make sure that you place an expiration date on them. Never more ...

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26 Days Left To Lower Your Business Taxes!

December 5, 2012

Pay Some Bills Before They Are Due!

Pay some bills early!  I know, normally I recommend that you hold onto cash as long as you can, but there are times when sooner is better than later on paying bills.  If your company is using the cash method to report taxes, every expense/bill that is paid on or before December 31st will counts as a business write off for 2012!  So go ahead and pay those bills that are not due until 2013 today!  It will lower your tax liability.
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27 Days Left To Lower Your BusinessTaxes!

December 4, 2012


It's Not Too Late To Lower Your Taxes for 2012!

 

If you know that you will owe taxes on your business profit...it is not too late to lower that tax bill!  There is a little known provision called Section 179.

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased, financed or leased must be within the specified dolla...


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The Secret Is In The Sauce!

August 17, 2012

McDonald’s has a secret sauce that made their Big Mac and the company successful. 

Burger King told you that “you can have it your way” every time to get you to buy their burgers.

Who told you that they would deliver a fresh hot pizza in 30 minutes or less…or it is FREE?  If you don’t know the answer, click here.

Now that I have your attention, what is the “secret sauce” that will solve your customers’ problem(s) better than anyone else?

Okay, I know that these are exam...


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What's In a Name?

July 30, 2012

McDonald’s has a secret sauce that made their Big Mac and the company successful. 

Burger King told you that “you can have it your way” every time to get you to buy their burgers.

Who told you that they would deliver a fresh hot pizza in 30 minutes or less…or it is FREE?  If you don’t know the answer, click here.

Now that I have your attention, what is the “secret sauce” that will solve your customers’ problem(s) better than anyone else?

Okay, I know that these are exam...


Continue reading...