There is a lot of talk about tax rates. Every way you turn the talking heads are mentioning them once again. Yet I venture to say the average person doesn’t fully understand how our tax system works. For example, a family making $100,000 a year may be especially terrified to learn their tax bracket may be raised from 25% to 28%. Quick head math: 3% more a year is $3,000 more a year in taxes! However, it’s not that simple. Read on for your free Tax Rates 101 course.
Insurance salespeople, architects, realtors, contractors, and property managers; these are just a few of our clients that use their personal car to get from business point A to business point B. As a business owner, if you use your personal car to drive anywhere needed to conduct business (to a meeting, client site, post office, office supply store, etc.) these miles are deductible to you as an expense.
So let’s cut to the chase. The whole process is made more complex by the fact that there are two ways to account for your car expense. Which one is better? Each situation is individual (of course!) so you will need to weigh each option. Or get a CPA to help you weigh each option. (Us?)