Wayne Davies

Free

Tax Preparer / Tax Reduction Expert

Wayne Davies

Wayne Davies Quick Facts

Main Areas
Tax reduction strategies for individuals, small business owners and the self-employed
Best Sellers
The Tax Reduction Toolkit
Affiliation
National Association of Tax Professionals

Wayne M. Davies is a Tax Professional serving individuals, small businesses and self-employed people in all 50 states. Based in Fort Wayne, Indiana, Wayne has been helping people reduce their taxes for the past 20 years. He provides a complete line of bookkeeping, accounting, payroll and tax preparation services for all business types: sole proprietorships, partnerships, corporations and LLC's. He is author of 3 tax-slashing ebooks for small business owners and the self-employed, "The Tax Reduction Toolkit: 29 Little-Known Legal Loopholes That Will Reduce Your Taxes By Thousands", "Incorporation Tax Secrets Revealed", and "How To Incorporate Yourself For Free". His ebooks are available separately or as a 3-volume set, "The Ultimate Small Business Tax Reduction Guide". Wayne publishes 2 free online newsletters: "Make Your Life Less Taxing" (on personal tax issues; new subscribers receive a free Special Report, "How To Save Hours of Time and Thousands of Dollars with One Simple Tax Deduction") and "The Small Business Tax Newsletter" (for small business owners and the self-employed; new subscribers receive a free Special Report, "How to Instantly Double Your Deductions").

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Wayne Davies Books

Articles by this expert

SelfGrowth articles and saved writing connected to this expert.

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All Sole Proprietors must prepare Schedule C as part of their federal personal income tax return. But it's likely that you can't stop there. As the old saying goes - "That's not all!" There's a pretty good chance that by filing a Schedule C, you must also file several other forms that are related to Schedule C. Here's a list of those forms and their relationship to Schedule C. Schedule SE, Self-Employment Tax.

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Do your eyes glaze over at the thought of those mind-numbing depreciation rules? Well, take heart, sole proprietor. Thanks to a tax law known as Section 179, you can probably kiss those depreciation rules good-bye. Depreciation is the name we use for deducting the cost of business assets such as office equipment and furniture (computers, printers, fax machines, copiers, desks, bookcases, etc) and other items that the tax code says have a "useful life" of more than one year.

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Looking for legitimate tax deductions for your income tax returns this year? Here are three common expenses you can deduct on Schedule C, all starting with the letter "E". Employees. There are several legal deductions related to your employees. Obviously, the compensation you pay them is reported on Schedule C, Line 26. Even though the description for this item is "Wages", don't stop there. Salaries, commissions and bonuses are also deductible and should be put on Line 26 also.

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Are you a sole proprietor who sells a product? Then you need to know how to deduct expenses related to the sale of those products. The purpose of this article is to give you an overview of what is potentially your biggest tax deduction. First, let's discuss an important concept related to this deduction known as "Cost of Goods Sold." Let's say in 2008 you start a business to sell widgets. You buy the widgets for $50 each and sell them for $100 each. Now it's tax time and you've got to figure out how to calculate the deduction for the cost of what you sold.

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Frustrated with the amount of self-employment (SE) tax you pay each year? You should be. The sole proprietor pays twice as much in SE tax (15.3%) as the employee pays in federal payroll taxes (7.65%). What's a Schedule C filer to do? Here are three ways to reduce the dreaded SE tax.

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Do you ever get confused about reporting your income on Schedule C? This article will help you get un-confused. First, let's define what we mean by "income". Generally speaking, income is the money you receive from the sale of products or services in your small business or self-employment activity as a sole proprietor. It is also called "gross receipts", "revenue", or "sales" and is typically reported on Schedule C, Line 1.

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Are you running a small business as a sole proprietor? Are you confused about which tax forms you are required to file? Here's an overview of the most common forms you'll need to prepare this tax season. 1. Schedule C, Profit or Loss From Business. Be sure you really are a sole proprietor before using this form. If your business entity is not a corporation or a partnership, then your small business could be a sole proprietorship. Other common synonyms for sole proprietor include independent contractor or self-employed.

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If you own a sole proprietorship and have employees, what payroll-related tax forms are you required to file? This article will answer that question. First things first. Let's check to make sure you really have employees. Take a look at Schedule C, Line 26, Wages. If there's an amount on that line, then you are reporting wages and/or salaries as a business expense, and that usually means your business has employees.

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What is the most frequently asked tax question? Are you ready? Here it is: "What's deductible?" That's it. Without a doubt, it's the most common tax questio I receive every year. It comes in several forms, such as: -How do I identify all the deductions I'm allowed to take? -Is there anything deductible that I'm not deducting? -How do I make sure I'm taking all legal deductions? -Is there one resource that describes all legitimate deductions, A to Z?

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Are you a sole proprietor who files the shorter Schedule C-EZ rather than the traditional (and longer) Schedule C? If so, please read on to find out why you may be making a big mistake. First, a quick review of the qualifications for using Schedule C-EZ. You qualify if you meet these criteria: - Your business expenses are less than $5,000 - Your business has a profit - You have no inventory - You use the cash method of bookkeeping - You have only one business as a sole proprietor - You have no employees - You are not taking the home office deduction

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Looking for an easy way to increase your business deductions? Look no further than your driveway. First, the general rule: your vehicle is deductible to the extent you use it for business. So, if you drive your car 100% for business, all car-related expenses are deductible. But if you use it less than 100% for business, do not despair. Less-than-100% use is very typical among small business owners and the self-employed -- you'll still come out way ahead by keeping good vehicle expense records.

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If you own a small business and are looking for deductions, don't miss out on these. The first two you've probably heard about but don't really understand (until now). The third one may seem far-fetched (pardon the pun) but is legitimate if the circumstances described below fit your situation. 1. FICA.

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Contacting Wayne Davies

Wayne M. Davies Inc.

4660 W Jefferson Blvd, Suite 220

Fort Wayne IN 46804

Phone: 260-459-3858

Email: wayne@YouSaveO Taxes.com

How to get started

Visit www.YouSaveOnTaxes.com to subscribe to my free tax-saving ezine for small business owners and the self-employed, "Small Business Tax Newsletter". New subscribers receive the free report, "How To Instantly Double Your Deductions" (and slash your taxes to the bone).

Visit www.OneSimpleTaxDeduction.com to subscribe to my free ezine on personal tax issues, "Make Your Life Less Taxing" and receive the free Special Report, "How to Save Hours of Time and Thousands of Dollars with One Simple Tax Deduction."