Tax Tidbits: Presented by Wayne M. Davies of www.YouSaveOnTaxes.com.Short but sweet nuggets for
Small Biz Owner and/or Self-Employed Person, each morsel serving up a specific tax reduction strategy guaranteed to tickle your monetary taste-buds.
The U.S. Tax Code is so big, there's only one way to digest it: one little nibble at a time.
Just like a piece of candy, one small bite of tax knowledge can give you one very delicious deduction!
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Tax Tidbit #1: How To Turn Non-Deductible Commuting Mileage Into A Legitimate Business Expense
-- by Wayne M. Davies
Copyright 2003 Wayne M. Davies Inc.
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For most folks, commuting mileage is a non-deductible expense -- unless you know little tax trick I'm about to reveal.
The non-deductibility of commuter miles is painfully true for employee who fights rush hour traffic every day, twice a day, for 5 to 10 hours a week.
All that hassle, and what does he have to show for it? Just gas money down drain, not to mention wear and tear on both his vehicle and his stress-o-meter.
You can deduct virtually all your mileage, including miles you log from your home to office or other place of business, if you meet following two criteria:
1. You are a small business owner or self-employed person, and
2. You have two offices or work locations: one outside home (Office #1) and one inside home (Office #2).
Having two offices is very common for today's self-employed professional. The store owner, shopkeeper, salesman, plumber, consultant -- all these folks are typically self-employed and have two offices: one where they meet with public (Office #1), other at home, where they get their paperwork done (Office #2).
