(SAN RAFAEL, Calif. - Sept. 30, 2009 - Tax Reduction Letter) Small business owners often face the dilemma of what to do with an older business vehicle once they buy a new one, a matter that tax reduction expert Murray Bradford covers in the August 2009 issue of his publication, the Tax Reduction Letter. "Tax Deduction on Sale of Business Car" walks readers through the steps typically necessary to determine their tax savings. Tax reduction articles from the last six months of the Tax Reduction Letter are available through a 7-day free trial of the Bradford Tax Institute; full subscribers receive access to the many years' worth of archives are on the site

"Typically, the smart move is for a small business owner to sell the older business vehicle to a third party once a new one takes its place," said Bradford, whose expertise in tax reduction comes from 30 years in accounting, including a lengthy stay at Price Waterhouse. "However, as with most business tax decisions, several scenarios are possible. In the case of the used business vehicle, the tax deduction on a sale depends on how the small business owner claimed tax savings on the vehicle while owning it."

Publisher of the Tax Reduction Letter every month, tax reduction expert Murray Bradford, CPA, has years of experience in developing and implementing small business tax reduction strategies. A former accountant for Price Waterhouse, Bradford is founder of several tax reduction strategy businesses. Quoted in national publications such as The Wall Street Journal and featured on national programming such as Financial News Network and CNBC, Bradford has helped more than 500,000 self-employed taxpayers realize an average of $17,700 in new tax deductions. His popular courses provide actionable small business tax advice

Bradford's article uses the example of a real world small business taxpayer who purchased a luxury car new in 2003 and now wants to know whether or not the car is worth selling. For small businesspeople who bought luxury vehicles for business purposes in that year, Bradford writes, three possibilities exist for how they might have claimed their related tax deductions:

1) The actual expense method and claimed bonus depreciation (subject to luxury passenger auto limits)
2) The actual expense method, electing out of bonus depreciation, but again being subject to luxury passenger auto limits
3) IRS mileage rate

For all three scenarios, the steps to take in order to determine tax savings on the sale of a used business vehicle, according to Bradford's article, are to compute the depreciation first; then, to compute the basis by subtracting the depreciation from the vehicle's original price new; and, finally, to compute the loss on the sale by subtracting the result of the previous step from the used sale price of the vehicle—typically, a negative number and, hence, why it is called a loss

"This loss must be multiplied by the percentage of business use the vehicle saw," said Bradford. "And the result is that, in many, many cases, selling the older vehicle will yield tax savings for the small business owner."

Taxpayers and tax professionals can view a Bradford Tax Institute video tutorial and learn how to gain access to nearly 400 Tax Reduction Letter articles at the site, with more on the way. Each presents tax reduction tips in plain English for tax laypeople and includes annotations for savvy accounting professionals. The last three issues are available through a 7-day free trial of the Bradford Tax Institute. Readers who decide to subscribe to the Tax Reduction Letter right now, however, receive immediate access to the entire archive

"Tax Strategies for the Self-Employed (2009)" is also available. In this annual course, Bradford shares tax deduction tips designed to help one-owner and husband-and-wife businesses navigate the maze of rules they must follow to properly determine and report their income. Readers who order this tax reduction course immediately gain access to 171 tax lowering strategies that draw on Bradford's expertise from 30 years in accounting

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About Murray Bradford, CPA, Tax Reduction Expert
Tax reduction expert Murray Bradford, certified public accountant and publisher of the monthly Tax Reduction Letter, has years of experience in developing and implementing small business tax reduction strategies. Bradford Tax Institute, his website, is home to a vast archive of Bradford's articles from the Tax Reduction Letter. Following nine years at Price Waterhouse, where he twice enjoyed the distinction of being selected to serve in the firm's Washington, D.C. national office, Bradford launched his tax reduction strategies businesses to focus on lowering taxes for one-owner and husband-and-wife businesses. Bradford has since helped more than 500,000 self-employed taxpayers realize an average of $17,700 in new tax deductions. His courses, including "Murray Bradford's Tax Strategies for the Self-Employed (2009)," are veritable goldmines of actionable small business tax advice. The news media regularly turn to Bradford for his tax strategy expertise, which he has shared in print publications and on radio and television programming, such as "CBS News Nightwatch," Financial News Network, KCBS, KGO-TV, KGO-radio, WFAN, WABC-TV, Fox, NPR, CNBC, The Wall Street Journal, The New York Times, Changing Times, Chicago Tribune, Money, Fortune and USA Today. A former Marine and author of several books, Bradford is an active member of the American Institute of Certified Public Accountants, the California Society of CPAs, the Minnesota Society of CPAs, and the Greater Washington, D.C. Society of CPAs

Readers may turn to Bradford's TaxStrategies Blog (taxstrategies.wordpress.com/) and YouTube page (youtube.com/user/taxreductionexpert) for his latest thinking on matters tax-related. Anyone may follow Bradford on Twitter (twitter.com/taxreductioncpa), visit his profile on Facebook (profile.to/taxreductioncpa), and connect with him on LinkedIn (linkedincom/in/murraybradfordcpa)

The media may contact the following individuals:

Kelly Clark
Regional Resource Manager, Tax Reduction Letter
7 Mount Lassen Dr., Ste. C258
San Rafael, CA 94903
kclark AT bradfordandcompany DOT com
PHONE: 415-446-4340
FAX: 415-446-0127

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BrentSkinner AT STETrevisions DOT com
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