Are you buying Regular gas? Premium gas? or 'Smart Gas'?
IF YOU ARE A 'SMART BUSINESS PERSON'- YOU WILL USE 'SMART GAS'
With the cost of gasoline at $4, you need to set up a plan to survive. Let's assume your little Mercedes gets 20 miles per gallon. If you traveled 100 miles, you would need 5 gallons of gas. At $4 per gallon, your total cost would be $20.
If you turned that 100 mile drive into a business trip, those miles become tax deductible business miles.
The US government now allows you to write off - 58.5 cents per business mile. If you travel 100 business miles, your deduction is $58.50.
If you are in a 40% tax bracket, the tax savings you would receive would be ($58.50 x40%) = $23.40. (paid for 'Smart Gas').
The only way you can get this business mileage deduction is by owning your own traditional business or easily starting your own home based business (HBB).
Our business sense tells us that with your next 5 to 7 tank fulls of gas you are going to be spending $500. So it makes perfect business sense to start your own HBB and have your business paid for with your next 5 to 7 tank fulls of gas.
After that - you are running on 'Smart Gas,' at no cost!
***PLEASE talk to a Tax Professional about the deductions available to you ***
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