Maximize Your Tax Deductions Using The IRS's "Two Business Location Rule"

Written by Collin Almeida

Maximize Your Tax Deductions Using The IRS's "Two Business Location Rule"

by Collin Almeida

If you're like most Americans, your automobile is one of your biggest expenses. Gas, insurance, maintenance, and licensing all add up to a generous portion ofrepparttar average person's income, not to mentionrepparttar 117343 actual cost of buying or leasing a vehicle. Wouldn't it be wonderful if you could write-off a considerable amount of these expenses on your taxes? Well, if you own a home-based business, you can. All it requires is some simple documentation and you can start claiming thousands of dollars in automobile-related tax deductions.

How many times have you gone to pick up office supplies while you were out buying groceries? When wasrepparttar 117344 last time you ran torepparttar 117345 bank to make a quick business deposit onrepparttar 117346 way to picking up your children at school? Chances are you do these things allrepparttar 117347 time, but you probably never realized that those miles could be claimed on your taxes. As far asrepparttar 117348 IRS is concerned, you can claimrepparttar 117349 miles as a business expenses ifrepparttar 117350 primary purpose for your trip was company-related. Think ofrepparttar 117351 plethora of possibilities: making copies atrepparttar 117352 mall while Christmas shopping, buying stamps on your way to pick up dinner, or comparing prices on computers while you shop for a new DVD player. All of these trips and plenty more could be legally claimed as tax deductions.

In addition to errands, you can also claimrepparttar 117353 miles you rack up while commuting to and from a regular job. If you have a home-based business, your commute mileage can be deducted underrepparttar 117354 IRS's "Two Business Locations Rule." According to this rule, you can claim mileage accumulated driving - "from one business location to a second business location". Here's how it works:

Before going to your regular job, handle a business- related task for your home-based company, such as phoning a client, checking e-mail, or balancingrepparttar 117355 books.

On your way to your regular job, make a "necessary business stop." For example, you might run byrepparttar 117356 bank, repparttar 117357 copy center, orrepparttar 117358 post office.

Drive to your regular job. Reverserepparttar 117359 procedure atrepparttar 117360 end ofrepparttar 117361 day. As long as you follow all four steps daily, you can claim all those commuter miles. While there's no trick involved in claiming these deductions, it does require additional effort on your part. First, you must rearrange your schedule in order to incorporaterepparttar 117362 business stops. While this may seem annoying at first, most home-based business owners find thatrepparttar 117363 reorganization boosts their overall efficiency. For example, instead of running a dozen separate errands during a week, those can be combined into only a few, slightly longer trips, which will save you time, energy, and probably gas.

Where Do They Get the Stuff They Sell??

Written by Natalie Williams

When I fist began researching how people made money on eBay, I wondered what we all probably wonder... "Where do these people get all this stuff they sell?" I was underrepparttar impression there was this one big answer, one particular place, where everyone purchased their merchandise and sold on eBay. I've come to realize there are many different places and many different ways that people acquire items to sell. Here are a few:

1- You may already have a physical retail store somewhere andrepparttar 117342 items you sell on eBay arerepparttar 117343 same items you sell in your store. You are usingrepparttar 117344 same distributors you normally use. Why is it that we never seem to walk into a Walmart and think "Where does Walmart get all this stuff they sell?" They set up accounts withrepparttar 117345 companies that either manufacture or distributerepparttar 117346 product they sell. 2- Sell your personal items from aroundrepparttar 117347 house. 3- Go to yard sales, pawn shops and thrift stores. Buy inexpensively and sellrepparttar 117348 items on eBay. 4- Set up accounts with drop ship companies. These companies usually sell a lot of different types of products for usually 10%-25% below retail cost. You can advertise an item for sell (on eBay, to your friends, an online store, wherever). Once you sellrepparttar 117349 item and collectrepparttar 117350 money for it, THEN you purchaserepparttar 117351 item fromrepparttar 117352 drop shipper who in turn will shiprepparttar 117353 item directly to your customer. You never have to have inventory in your home. Normally, your customer won't know it didn't come from you. This is called "Blind-Drop Shipping".

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