Should I maximize the tax deductions?
Why should I know tax deduction rules?
There is an old saying about earning a living: “It’s not how much you make, it’s how much you keep.” Consider Uncle Sam as your business partner. The offer you can’t refuse is the tax on your income. Uncle allows you to claim certain tax deductions Your mission is to deduct as much as you can and still keep the Godfather happy. Capiche?
Net profits from your work is what is taxed. So, the more deductions you have, the less income tax you will owe come April 15th. One of the biggest deductiosn a small business can make is the mileage deductions from driving a private car for business. But to do so, you must keep a proper mileage log or risk IRS audit. Audits typically goes back three years if they happen so keeping a proper log is worth it! Thsi is where MileCatcher comes into the picture. It will register the trip s, help you classify trips automatically and do the math. But what trips are deductable and not? if in doubt, download our free tax e-books written by Fredrick W. Daily, US Tax Attorney, for more advice.