Commuting is Tax-Deductible, IF........

The Final Word:
YES, "COMMUTING" IS
TAX-DEDUCTIBLE, IF...
There is so much misinformation about
this subject among home-based business
owners, and so much lack of information
among tax professionals, it's time to set
the record straight -- authoritatively!

My source is Internal Revenue Ruling 99-7,
as amplified by 1999-5 Internal Revenue
Bulletin 4. (Those are the sources you may
need, in order to convince your own tax pro
that s/he may be "less than fully informed.")

Most tax pros know that IRS Regs, Section
1.62-2(e) and 1.262-1(b)(5) state that the costs
of commuting between a taxpayer's residence
and his/her place of business or employment
are non-deductible personal expenses.



HOWEVER, if they kept reading...

...they would see these words: "However, the
costs of going between one business location
and another business location generally ARE
deductible under Section 162(a), Rev Rul 55-109,
and 1955-1 C. B. 261.

Section 280A(c)(1)(A) explains how a taxpayer
may claim a "home office" deduction. (That's
covered in Chapter 4 of "It's How Much You KEEP,
That Counts! Not how much you Make.)

In the case of Curphey v. Commissioner [73 T.C.
766 (1980)] the Tax Court's decision was that such
expenses "were deductible where the home office
was a taxpayer's principle place of business."



HERE is the DEFINITIVE STATEMENT
in the Court's WRITTEN decision:

"We see no reason why the same (IRS) Rule which
states that local transportation expenses incurred
in travel between one business location and another
are deductible, should not be equally applicable
where a taxpayer's principle place of business,
with respect to the activities involved, is in his
residence."

Need more "proof?" Okay, here is what IRS Revenue
Ruling 94-47 (the most current statement on the
subject) says verbatim:

"If the Taxpayer's residence is the taxpayer's principle
place of business within the meaning of Section
280(a)(1)(A) - i.e., YOU HAVE A HOME-OFFICE - the
taxpayer MAY deduct daily transportation expenses
incurred in going between the taxpayer's RESIDENCE
and ANOTHER work location in the same trade or
business, regardless of distance."



What does "in the same trade or business" mean? I
cover that on page 93, but let me repeat it.

Revenue Ruling 99-7 says, and I quote,
"Where an employee has two separate employers,
BOTH such positions constitute part of the
employee's trade of business."

HOW MUCH DOES THIS MEAN
TO YOU?

How many miles do you drive to your W-2 job?

Multiply that number by 2, to get your round-trip
daily commuting distance.

Multiply that number by 5 to get your weekly
commuting mileage.

Next, multiple that by 50 weeks, to determine how
many 'commuting' miles you travel in a full year.

Finally, multiply that number by $0.585 - the per-mile
tax deduction for business use of your personal vehicle.

THAT'S HOW MUCH THIS IS WORTH TO YOU.

For example:

Let's say you drive 12 miles to work.

12 miles x 2 = 24 miles per day, roundtrip.

24 miles x 5 days/week = 120 miles per week.

120 miles x 50 weeks/year = 6,000 miles per year.

6,000 miles x $0.585 = $3,510.

$3,510 = THE AMOUNT OF YOUR NEW,
ADDITIONAL TAX DEDUCTION!!!

WANT MORE INFO ON THIS
HUGE TAX BREAK?

Members of my new Mentors Club can login and
click on "What's New?" at the top of the page, and
you will find a brand new SPECIAL REPORT on this
subject.

It provides enough in-depth information (including
several specific Tax Code Sections and Tax Court
Rulings) to arm you for convincing your tax pro or
defending yourself in an audit.

A lot of tax pros just don't know this information.
But, after you share my SPECIAL REPORT with them,
if they don't add this deduction to your next tax return
- you might call it malpractice.


IF YOU ARE NOT YET A MEMBER OF
MY NEW "MENTORS CLUB," READ THIS

My most valuable information (such as the Special Report
mentioned above) will always be made available to you
(for a small price) on my web site (see below).

BUT the SAME information will be available for FREE on
my Mentors Club site in the Members Area - plus lots and
lots of additional resources that will be exclusive to
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WANT TO "TEST DRIVE" A MEMBERSHIP?
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I'll even remind you - twice - as the 'decision date' approaches
so that you can make an informed decision.


So, there you go -- TWO "Tax Tips You Can Bank On"

1. How to increase your tax refund BIG TIME by deducting your
commuting mileage, and

2. How to get world-class mentoring by 50+ Millionaires,
Business Leaders and Success Coaches, all for less than
a buck a day (and FREE for the first 30 days!).

Visit me at www.HomeBusinessTaxSavings.com

Helping THOUSANDS to SAVE a BUNDLE!!!
Ronald R. (Ron ) Mueller, MBA, Ph.D.
Author, Speaker & Business Success Coach

www.HomeBusinessTaxSavings.com

P. S. -- The Specials and the 30-Day Trial Membership
both expire at midnight on Labor Day Monday -- just
THREE DAYS AWAY! You snooze, you lose.