A good friend of mine owns a Jani-King cleaning franchise and my wife has been employed by him for a couple of years. Starting last year my wife started doing it full-time. I have a couple of questions…

1. We have received about ,000.00 in income during 2007 and have not paid any taxes on that income. What kind of percentage of that income can we expect to pay?

2. Her boss provides all of the supplies, however we use one of our personal vehicle to go from job site to job site. I know she drives approximately 250 miles each week. Can we deduct the mileage as business expense as long as we know what the daily amount is (we have kept track).

3. Should I look at any other deductions?

I know there will be people that will say that we need to speak to an accountant, and we intend to. I am just looking for a little education before we meet with one.

Any assistance is greatly appreciated.
I should have clarified the section about my income. I work for an employer (city government) and our total household income was about 53K including the 12K we made as a contractor.

I made 95000 last year, I am single, no dependents, no house, I went to HR block last year and I got back a very small amount for my return. I use my personal vehicle for business about 70% of the time. I have logs of this information. I have a 401K and pay into bi monthly. I get paid a per diem while at work, but it seems to be below the standard for where I work. Any help would be greatly appreciated. Also, will I be able to get more money back from last year since HR Block didn’t advise me of any deductions such as mileage and per diem?

I accidently answered "no" when asked if I have evidence to support my personal vehicle standard mileage deduction for my business. Now I’m terrified I will have committed fraud and my refund will be taken. What can I do, help please!!
I do have evidence, I just accidently marked no. Will the IRS automatically disallow this deduction or am I setting myself up for an audit?

RCA rules state that the limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes will increase by 5 cents to 50 cents per kilometre for the first 5,000 kilometres driven and 44 cents for each additional kilometre.
Since I get paid .42/km, could I claim .08/km on the first 5000kms and then .02/km on the rest??? Do I need a form for this?

CRA states that the limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes will increase by 5 cents to 50 cents per kilometre for the first 5,000 kilometres driven and 44 cents for each additional kilometre. For the Northwest Territories, Yukon and Nunavut, the tax-exempt allowance will rise by 5 cents to 54 cents for the first 5,000 kilometres driven and 48 cents for each additional kilometre

i drive all day in my personal vehicle for work–my route has recently changed–and now I have to pay a lot of tolls and for parking while at clients homes..

i normally take the standard mileage deduction
can i do that and also deduct tolls and parking as business expenses?

i do my taxes by myself–i can’t afford an accountant….
my friend uses an accountant-i find her more deductions–because the accountant doesn’t know what to ask her..i had an accountant review my taxes 1x-he said i did everything…
nara-i KNOW you are completely wrong-a salaried employee who is required to use their own vehicle to travel between clients throughout the say CAN deduct mileage—
and how do you ‘find that I am a salaried employee’
a pizza delivery person who does not get reimbursed by their employer can deduct mileage–
the only time a salaried employee cannot deduct is if the employer reimburses-my employer does not
this is US income taxes-

if you are referring to another country you need to indicate that and remember that not all countries are the same

I use my personal vehicle for business. I get re-imbursed at a government rate. Can I deduct my mechanical repairs as an operating expense?