Important tax advice for small company owners
- July 7, 2022
- Posted by: admin_finsq
- Category: All
Do you own a business? Here’s a breakdown of what you may claim as a tax deduction. Find out what else you can do to save money on taxes once you’ve claimed your expenditures.
When you operate a business, filing taxes might get a little more challenging. When you work for yourself, every year is unique. And, more than likely, the COVID-19 epidemic has caused its fair share of upsets in recent years
- Growth through innovation/creativity:
Municipal taxes paid over the year can be deducted from residential property income. People frequently pay municipal taxes in cash and do not save a duplicate of their receipts. However, paying municipal taxes entitles you to a deduction, which may be claimed even if you have lost the receipt because it will be displayed on your bank account. -
Always deduct taxes at the source
The Income Tax Act specifies various transactions that require the service receiver or buyer to deduct tax at the point of sale while making payment to the service provider or seller. If a person fails to do so, the cost becomes inadmissible and, as a result, raises the tax burden.
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Stock Appraisal
Normally, the stock is valued at cost, however stock with a limited shelf life should be evaluated on the basis of cost or NRV, whichever is lower. Net Realizable Value offers the true realisable value of a stock, preventing it from being overpriced and, as a result, lowering taxes.However, in order to prevent the unwelcome attention of income tax officials, such appraisal should be practised consistently throughout time
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Pay municipal taxes with a cheque
Municipal taxes paid over the year can be deducted from residential property income. People frequently pay municipal taxes in cash and do not save a duplicate of their receipts. However, paying municipal taxes entitles you to a deduction, which may be claimed even if you have lost the receipt because it will be displayed on your bank account.