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About Wayne M. Davies

Wayne M. Davies is author of 3 tax-slashing eBooks for small business owners and the self-employed. For a free copy of Wayne's 25-page report, "How To Instantly Double Your Deductions" visit http://www.YouSaveOnTaxes.com
Unraveling Tax Laws: Inventory And Depreciation

Hi Wayne: I own a Video Store which I bought last year. I used “taxcut” to do my taxes but realized too late that I was over my head. Someone is probably going to have to look at them. I completed and paid my taxes on time even though there may be errors.

I’m confused about my inventory. Do I show it on the balance sheet and taxes as inventory or just depreciate it as a depreciation expense?

How to Deduct Your Next Vacation

It is perfectly legal to deduct your next vacation. Here’s how to do it.

Carpe Diem — Seize The Per Diem Method (and Throw Away Your Receipts)

The mantra of tax record-keeping has remained relentlessly burdensome for decades: “No Receipt, No Deduction”.

But fear not, you who loathe the never-ending climb up the mountain of paperwork required by the U.S. tax code.

Many of our most beloved tax rules have exceptions, and such is the case with this one.

Vehicle Deductions And Section 179
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What can you tell me about Section 179. I own a small business and have heard that I can obtain a substantial tax benefit by purchasing a new vehicle. I was told that to obtain the most benefit I should purchase a vehicle with at least 6000 lb. Gross Vehicle Weight. How much benefit could I expect and do I have to maintain ownership for any specific length of time? If I purchase late in the year can I still utilize the deduction? Is there anything I should be aware of that could bite me if I’m not careful?

The Deductibility Of Charitable Contributions

I was told that you have to reach a certain percent of donation from your annual income before you can claim it as tax deduction. Others tells me that they claim all their deduction no matter how much. I’m confused, please help!

Thanks, Bernadette

Sole Properietorship And Tax Liablility

Hi Wayne:

I am a Personal and Business Coach and that income requires quarterly self-employment tax payments as estimates of that year’s taxes. I also earn some occasional income through a couple of other businesses who hire me as contract labor. The income I earn through those businesses gets reported on 1099-Misc under section 7. Nonemployee compensation. Does that income also need to be included in the quarterly self- employment tax payments? At what point of income MUST you file the quarterly payments?

Taxes And The Personally-Funded Business

Hi Wayne:
I currently work for an aerospace company and run my own business. Can I use my aerospace money to pay for some of my business expenses? I really don’t want the money to be taxed twice, but do I have no other choice?

How To Turn Non-Deductible Commuting Mileage Into A Legitimate Business Expense

For most folks, commuting mileage is a non-deductible expense — unless you know the little tax trick I’m about to reveal.

The non-deductibility of commuter miles is painfully true for the employee who fights rush hour traffic every day, twice a day, for 5 to 10 hours a week.

Quickbooks Question + Mileage Deductions

I have a question about payroll items and tax tracking categories in QuickBooks. I have JUST ME and I’m an 1120S, so I don’t feel it’s worth the $169 subscription price when I can download the tables once for free. I waited until after 2/15/2003 to activate my free download, but now the Payroll area keeps running me through the setup wizard and telling me that my tax tracking categories are all wrong. Even when I check “this payroll item is inactive” for the things I don’t use (like Tips Out and Tips In), it still gives me the error.

Help! I Made a Big Tax Mistake

Dear Wayne,
I make a big mistake. I am currently in a lot of debt so I decided a few years ago to change my number of dependents on my W4 so that I can get more money on my paycheck. Well, the problem is I put too many and now for the first time ever I owe back taxes. Although I have two dependents I still owe and the worst is I have not filed for 1999-2002.

5 Reasons Why You Should NOT Get A Big Tax Refund

I will never forget the day one of my tax clients came to pick up his personal income tax return.

“How’s it look?” he asked.

“Well,” I said, “You’re getting a refund.”

Wayne Davies Answers Tax Questions
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Wayne Davies joined the WebProNews team of experts with his break out article “How To Reduce Your Business Taxes.” He’s been answering WebProNews readers’ tax questions ever since.

Tax Questions Answered: eBusiness Deductions

Hi Wayne,

I’ve had 3 CPAs all give me different answers, and a forth one flatly refuses to believe that any internet business is a “real” business; she’s strictly ‘Brick-n-mortar’.

I sadly found this out ‘after’ she did my taxes, and cost me thousands in deductions.

Tax Questions Answered: Reporting Affiliate Profits

Hi Wayne:

I received about $6000 last year from affiliate programs, etc. I am planning on filing this as passive income, counting any PPC costs as expenses, etc. Do you see any problems?

Tax Questions Answered: Incorporating
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Hi Wayne,

I would like to incorporate my company. Some people are recommending to incorporate my company in Delaware. I would like to know how it works. If you charge for this advice or if you can help please let me know what is the cost for your help.

Tax questions Answered: Dissolving a Corporation

Hi Wayne,

Just read your very informative article from WebProNews. In the article you say that to dissolve an S corp is a can of worms, why?

I launched my second ecommerce company in May of 02 in Massachusetts. I incorporated as an S corp. In October of 02 I moved to New York. I decided that since the company was not a huge success (yet) that there was really no reason for me to keep a corporation in Mass while living in NY.

Tax Filing 101: It’s Never Too Early To Procrastinate

For all you procrastinators out there, here’s a nuts ‘n bolts guide on how to legally postpone the filing of your Year 2002 income tax returns. When it comes to putting things off, you can never plan too far ahead! In many cases the IRS allows you to file a ‘no-questions-asked’ extension form. Which particular form you file depends on what type of entity your business happens to be.

How to Reduce Your Business Taxes

It’s tax time (again), and since you are an Internet professional, it’s time for a crash course in Small Business Taxation.

A Big Tax Loophole Just Got Bigger: How To Turn Taxable Income Into Non Taxable Income

Believe it or not, there are ways to convert taxable income into non-taxable income, without any fear of an IRS audit. Here’s one of my favorites. It’s been part of our tax code for over 30 years, yet many still don’t take advantage of it.

The Biggest 37 Cent Mistake You Could Ever Make

When it comes to filing your tax return, spending 37 cents could be the biggest mistake you ever make.
Millions of taxpayers make the mistake of putting their income tax return in a regular letter-sized envelope, sticking on a 37 cent stamp, and placing the envelope in the mailbox.

A Big Tax Loophole Just Got Bigger: How To Turn Taxable Income Into Non-Taxable Income

Believe it or not, there are ways to convert taxable income into non-taxable income, without any fear of an IRS audit.

How To Audit-Proof Your Tax Return Forever!

Congress recently passed legislation that is supposed to result in a more “sensitive” Internal Revenue Service. You know, not such a lean, mean, tax-collecting machine.

5 Tax Myths That Are Costing You A Bundle

This article is based on the following assumption: You are an Internet professional who hates to pay taxes.