There are 12 easy, specific actions you can take right NOW,
that will slash your 2014 taxes to the legal minimum.
HERE IS ACTION STEP #5 of #12 –
Can I presume you have read Chapter 8 of Home Business Tax Savings,
Made Easy? If not, see Special Issue #2 in this 12-part series.
Hint: The key to one of your biggest tax deductions may be in your ignition.
Business use of your personal vehicles gives you a 56¢ per mile tax deduction
this year. Doesn’t sound like a big deal, does it? Let’s look at the math…
a. Gas cost is $3.50/gal
b. Tank holds 18 gal
c. Car gets 20 mpg
- A fill-up (18 gal) @ $3.50 per gal will cost us $63.00.
- Those 18 gal (@ 20 mpg) will get us 360 miles down the road.
What was our fuel cost per-mile?
$63 divided by 360 miles = 17.5¢ per mile
Cost is only 17.5¢ per mile?
But the IRS lets us deduct 56¢ per mile. DO THE MATH!
Our tax deduction is 3.2 times greater than our actual gasoline cost!
Look at this…
At a cost of $3.50 per gallon, our fill-up cost $63. At a tax deduction rate of
56¢ per mile, Uncle Sam gave us $201.60 in tax deductions to use that $63.00
tank of gas for business driving.This is kind of a big deal!
To make sure you get this deduction for every business-mile you put on your
car this year, you must have records (of course!). But all they ask for is Day,
Destination, Primary Purpose,and Distance traveled when using the vehicle
for business purposes. It takes maybe 20 seconds.
Download your FREE 1214 Vehicle-Use Log
That’s #5 of the 12 best tips I can give you to leg
ally slash your 2014 taxes to the bone.
SEARCH THIS BLOG for “Special Edition 6 of 12” tomorrow.