It’s Easy to Qualify for the BIGGEST TAX BREAK for Network Marketers in 2005

Most active network marketers can qualify for vehicle-use tax deductions worth $3,000 to $5,000, or even more!

In 2005 every Business-Mile on your personal vehicle gives you a tax deduction worth 40.5-cents per mile. That’s more than $400 for every 1,000 business miles you put on your car. 10,000 business miles = $4,050 in tax deductions. 13,000 business miles = $5,265 in deductions.

Here are three steps to claiming thousands in business-use tax-deductions for your vehicle.

1. Estimate what your odometer reading was on January 1, 2005 and save that number in your 2005 tax files. Then make a note in your day planner to record your odometer reading on Dec. 31 of this year. With these two numbers you’ll know the total mileage you put on that vehicle in 2005.
    

2. Now, for just 90-days, every time your car is used for anything, jot down just four quick facts: (1) the date, (2) odometer reading from your dashboard, (3) where you are going (destination), and (4) primary purpose of the trip. At the end of the 90 days, you will determine what percentage of total miles was for Business Use, and what percentage was primarily for Personal use.
    

3. Multiply your Total Mileage for the entire year (Step 1, above) times the Business-Use percentage (from Step 2), and then multiply that number by $0.405, and you’ll have the value of your 2005 tax deduction for business use of your personal vehicle.

For example, let’s say you drive 15,000 miles this year, and your business use is 85% (based on your 90-day sample period). 85% of 15,000 is 12,758 miles. Multiply that number by 40.5¢/mile, and you get the value of your tax deduction -- $5,163.75!

Where do you put the most miles on your car? Commuting? “Commuting” miles are never deductible. HOWEVER, you may be able to convert your commuting miles into tax-deductible “Business Use” by using the IRS “Two Business Location Rule.”

How many miles do YOU commute? Ready to learn how to use the “Two Business Location Rule” to add thousands more to your tax deductions? Check out my article on this topic, here on MainStreetMLM.

Save a Bundle!

Ron Mueller, author of
"It's How Much You KEEP, That Counts! Not How Much You Make"
www.HomeBusinessTaxSavings.com