Tax Deductible Expenses
Tax deductible expenses reduce our net and taxable incomes. By increasing our deductions we can reduce the amount of taxes otherwise payable.
Tax payers can be divided into two main tax groups The employed and the self employed. The self employed can be further divided into the un-incorporated and the incorporated
The following are just a few of the most common deductible expenses available
In addition to the entitlements of the individual taxpayer, Sole proprietors or small business owners (these may include, freelancers, professionals, home based businesses, network marketers, independent distributors etc) may be able to deduct:
Risk management or protection against liability may be one of the main reasons why individuals choose to incorporate, but there is also a tax advantage in owning a corporation
Higher tax deductions help to offset the increased risks that businesses take to produce taxable incomes. These are divided between the business profits and indirectly through the individuals' earnings.
As you can see the tax deductions increase as you go from an individual to a business
Businesses leverage the productivity of many individuals to create wealth and can earn considerably more than the individuals they employ. Many of the world's wealthiest people own a business or company