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1. Make sure you get the maximum allowable tax deduction for business use of your car<\/strong><\/p>\n There are two methods to calculate your auto expenses and you can choose the one that gives you the best results:<\/p>\n actual costs<\/strong> You can choose differently each year <\/strong>without needing permission from the IRS. As your car gets older and needs more repairs, the actual expense method frequently gives higher deductions.<\/p>\n If your business use is less than 100%, you\u2019ll still need to keep mileage records so you can split your costs between personal and business purposes.<\/p>\n 2. Make sure you track all your business PayPal transactions correctly<\/strong><\/p>\n If you sell on-line, you probably have a ton of entries in your PayPal account. You need to record them all properly so you don\u2019t pay too much in taxes. The types of items include<\/p>\n Sales revenue Some of these transactions represent income, some expense, some neither. If you don\u2019t understand the difference, it\u2019s easy to miss some deductions and it\u2019s also possible to overstate your income.<\/p>\n 3. Make sure you take all the deductions you\u2019re entitled to for health insurance premiums and medical expenses<\/strong><\/p>\n If you file Schedule C and show a net profit<\/em><\/strong> for your business, you can deduct a portion of the amount you paid for medical insurance. This is NOT a deduction from your business income and is NOT reported on Schedule C. It\u2019s a deduction for adjusted gross income and is reported on Line 29 of Form 1040.<\/p>\n If you own more than 2% of an S corp,<\/strong> you can deduct the cost of medical insurance premiums you paid for yourself, your spouse, and dependents as long as the amounts were included in your W-2 wages from the corporation.<\/p>\n Any amounts that you deduct as self-employed health insurance premiums can\u2019t be included in your itemized deductions on Schedule A.<\/p>\n
\noptional mileage amount<\/strong> (for 2009 it\u2019s .55 per mile)<\/p>\n
\nListing fees from eBay and other venues
\nCredit card processing fees
\nShipping expenses
\nMoney transfers<\/strong><\/p>\n