You can do that here to but the mileage amount usually works out better unless you are also depreciating the car itself or leasing the car—or have a lot of expensive repairs in a year. David Love www.davidlovepianos.com From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf Of John Ross Sent: Tuesday, April 07, 2009 2:32 PM To: pianotech at ptg.org Subject: Re: [pianotech] Mileage charges - the tax angle Up here, we can deduct the costs of repair, fuel etc. as a tax deduction. It would be offset by any amount charged to the customer. John Ross Windsor, Nova Scotia ----- Original Message ----- From: Israel Stein <mailto:custos3 at comcast.net> To: pianotech at ptg.org Sent: Tuesday, April 07, 2009 4:18 PM Subject: [pianotech] Mileage charges - the tax angle Daniel, Don't fall for the nonsense of "well, you can use it as a tax deduction". The government does not reimburse you for yoru expenses - tax deductions merely mean that you don't have to pay taxes on the money that you took in but spent on "cost of doing business". The money still stays spent - you don't get it back. The only thing that matters is that when you subtract the cost of doing a particular job from what it cost you to do the job - it's still worth your while to do it. So the real costs (gas, wear-and-tear, insurance, etc) and the time spent traveling vs. what you charge is all that matters - taxes don't enter into it. With one exception - if you are trying to minimize your declared income in order to get into a lower tax bracket. I think that in our business that rarely applies (unless one has a spouse with a three-figure income...) In any case, I don't think that the occasional undercompensated trip to The Land of Enchantment (that's what it says on the license plates) is going to get you into a lower tax bracket... Israel Stein -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://ptg.org/pipermail/pianotech_ptg.org/attachments/20090407/c6d4d914/attachment-0001.html>
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