How to Organize

Here's another suggestion: set up twelve large envelopes labeled "Bills to be Paid," one for each month. I save used ones from the mail. At the end of the month, pay your bills and put the paid receipts back in that envelope, scratching out the words " to be," The envelope now reads "Bills Paid" for that month. You'll have an accurate, easy-to-find, complete record of all the bills you've paid each month, and between that and your checkbook and receipts, you'll have no trouble doing your income tax at the end of the year. Even more important, if three or four years hence the IRS wants some information from you, it will be on hand and easy to find.

To deduct auto expenses you can keep an accurate record backed by receipts of every dollar you spend for business travel in your family car. Or you can do it the easy way and just keep track of the approximate miles you drive. The IRS allows you to deduct so many cents per mile. That figure keeps changing although it's fixed by law for each year. It does take into consideration all costs of owning and maintaining a car, including gas and oil, repairs, tires and battery, and depreciation for wear and tear.

TRIP TICKET

Date

Trip to

Purpose

Persons Visited

Miles Driven

Gas/Oil

Parking

Meals

Telephone

Xerox

Other

Total Expenses

130/Cash from Square Foot Gardening

Since all of your income and profit are in cash with no deductions for Social Security taxes, income taxes, or unemployment taxes that are usually taken out of your paycheck at the office or plant, you may have to file and pay what are called estimated payments four times a year with the IRS. It all depends on your expected income from your new cash garden business. Once you can reasonably estimate that, call your local IRS office and ask about this. You don't have to give your name, and you won't get in any trouble for asking, so don't be afraid to pick up the phone.

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