What Are Income Tax Deductions?

Business tax services are about so much more than simply registering for income tax, these services also cover aspects such as income tax returns. To be able to complete your tax returns efficiently and correctly, you will first need to have a clear understanding on tax deductions to ensure that you do not either claim for items that will not be deducted, or not claim for items that can be deducted.

The main expenses that can be deducted from your income tax returns include items for business purposes such as:

  • Rent
  • Business Travel Expenses
  • Payroll
  • Insurance
  • Taxes
  • Interest

Income tax deductions can also be done for capital expenses such as the following:

  • Equipment Purchases
  • Property Purchases
  • Repairs to Equipment or Property
  • Depreciation of Equipment

Home offices that are just starting up can also be deducted. This is done by calculating the portion of space in your home that is used for work purposes. Business travel expenses can also be deducted if the trip was entirely devoted to business. Vehicle mileage for business related car travel can also be deducted by calculating the amount mileage used for business needs.

To ensure that your income tax returns are completed on time and that they are correct in terms of deductions, it is always best to consider a professional accounting firm to assist with your tax needs. Contact PATC today to learn more about business tax services on offer.