I plan on 0-20 miles from my home base, no mileage surcharge. Over 20-50 miles, a $30 mileage surcharge. I really don't plan on going beyond 50 miles. Yes I'll pay taxes on that surcharge... Just like all my other income. I'll simply deduct the 55 cents a mile or whatever it is for 2009 for all my business miles on the appropriate IRS form and add the surcharges I've accrued to the revenue side. Simple accounting, perfectly legal, perfectly legit, and pays me a small token for my time on the road that can't be spent generating revenue in a more productive fashion. Regards, Rob McCall Murrieta, CA On Apr 07, 2009, at 18:11 , Duaine & Laura Hechler wrote: > OK, let's assume you do this "wholesale" idea. > > Although, I've already gone through this "kind" of idea with a tax > man. > > A customer's mileage is 30 miles (ignoring the fact whether it's one > way > or around trip) > > At 95 cents a mile = $28.50 > > At 55 cents a mile = $25.00 > > Assuming you report it a 55 cents a mile - that's $3.50 profit, > right ? > > Wrong, that now, becomes taxable income. > > Did you really come out ahead ? It all depends on your tax rate ? > > I'd stick to whats "legal" > > Duaine >> Andrew & Rebeca Anderson wrote: >>> What the IRS allows you to write-off is your "wholesale." Seems to >>> be what everyone else is saying. I've been charging 95 cents a >>> mile. >>> >>> Andrew Anderson >> >> -- >> Duaine Hechler >> Piano, Player Piano, Pump Organ >> Tuning, Servicing & Rebuilding >> Reed Organ Society Member >> Florissant, MO 63034 >> (314) 838-5587 >> dahechler at att.net >> www.hechlerpianoandorgan.com
This PTG archive page provided courtesy of Moy Piano Service, LLC