[TOPIC 27] ITEMIZED DEDUCTIONS | General Business Expenses
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4 سال پیش
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In our previous video, we
In our previous video, we have mentioned that a taxpayer who is self-employed or having business or practicing his profession may be allowed to deduct certain items from his gross business income to arrive at net taxable income subject to income tax. The taxpayer may choose between a) Itemized Deductions or b) Optional Standard Deduction.
In this video, we discuss the tax rules when claiming itemized deductions particularly an expense. An expense is anything that costs the taxpayer to spend money to generate revenues. The expenses allowed by our Tax Law to be deducted from the gross income may include:
1. Salaries and Wages paid to Employees which includes bonuses, de minimis, fringe benefits, other similar remunerations;
2. Travel expenses incurred in relation to the conduct of business or trade or practice of profession;
3. Rental Expenses paid to lessors of property leased;
4. Entertainment, Amusement and Recreation Expenses which are incurred for the development, management or operation of the business;
5. Materials and Supplies used in the conduct of business;
6. Utilities, Telecommunication, and Internet Expenses;
7. Repairs and Maintenance; and
8. Such other expenses incurred which necessary, ordinary and duly substantiated.
As a general rule, all expenses claimed for deduction for income taxation purposes must be NECESSARY, ORDINARY, and SUBSTANTIATED, otherwise, these expenses cannot be allowed for deduction.
If you haven't watched yet the comparison between Itemized Deductions and Optional Deduction, please click this link to redirect you to our video discussion: [TOPIC 26] ALLOWABLE DEDUCTIONS | Ite...
To further understand the 10 ITEMIZED DEDUCTIONS, please watch the following videos in order:
1. General Business Expenses: [TOPIC 27] ITEMIZED DEDUCTIONS | Gene...
2. Interest: [TOPIC 28] ITEMIZED DEDUCTIONS | Inte...
3. Taxes: [TOPIC 29] ITEMIZED DEDUCTIONS | Taxe...
4. Losses
4.1. Losses from Casualties: [TOPIC 30] ITEMIZED DEDUCTIONS | Loss...
4.2. Losses from Operation (NOLCO): [TOPIC 31] ITEMIZED DEDUCTIONS | Net ...
4.3. Losses from Wash Sales, Abandonment and Wagering Losses: [TOPIC 32] ITEMIZED DEDUCTIONS | Wash...
5. Bad Debts: [TOPIC 33] ITEMIZED DEDUCTIONS | Bad ...
6. Depreciation: [TOPIC 34] ITEMIZED DEDUCTIONS | Depr...
7. Depletion: [TOPIC 35] ITEMIZED DEDUCTIONS | Depl...
8. Charitable Contributions: [TOPIC 36] ITEMIZED DEDUCTIONS | Char...
9. Research and Development: [TOPIC 37] ITEMIZED DEDUCTIONS | Rese...
10. Pension Trust: [TOPIC 38] ITEMIZED DEDUCTIONS | Cont...
Also, if you want to know about the components of gross income, and how to compute an income, please watch the following videos.
1. Sale of Real Properties Classified as Capital Assets: [TOPIC 23] DEALINGS IN PROPERTIES | C...
2. Sale of Shares of Stocks: [TOPIC 24] DEALINGS IN PROPERTIES | C...
3. Sale of Capital Assets not Subject to Capital Gains Tax: [TOPIC 25] DEALINGS IN PROPERTIES | S...
4. Ordinary Assets and Capital Assets: [TOPIC 22] DEALINGS IN PROPERTIES | O...
5. Computation of Gross Business and Professional Income: [TOPIC 13] GROSS BUSINESS AND PROFESS...
6. How to Compute Compensation Income: [TOPIC 12] GROSS COMPENSATION INCOME ...
7. Final Income Tax on Certain Passive Income: [TOPIC 14] PASSIVE INCOMES | Final Wi...
I will upload videos every Monday, Wednesday and Friday.
In this video, we discuss the tax rules when claiming itemized deductions particularly an expense. An expense is anything that costs the taxpayer to spend money to generate revenues. The expenses allowed by our Tax Law to be deducted from the gross income may include:
1. Salaries and Wages paid to Employees which includes bonuses, de minimis, fringe benefits, other similar remunerations;
2. Travel expenses incurred in relation to the conduct of business or trade or practice of profession;
3. Rental Expenses paid to lessors of property leased;
4. Entertainment, Amusement and Recreation Expenses which are incurred for the development, management or operation of the business;
5. Materials and Supplies used in the conduct of business;
6. Utilities, Telecommunication, and Internet Expenses;
7. Repairs and Maintenance; and
8. Such other expenses incurred which necessary, ordinary and duly substantiated.
As a general rule, all expenses claimed for deduction for income taxation purposes must be NECESSARY, ORDINARY, and SUBSTANTIATED, otherwise, these expenses cannot be allowed for deduction.
If you haven't watched yet the comparison between Itemized Deductions and Optional Deduction, please click this link to redirect you to our video discussion: [TOPIC 26] ALLOWABLE DEDUCTIONS | Ite...
To further understand the 10 ITEMIZED DEDUCTIONS, please watch the following videos in order:
1. General Business Expenses: [TOPIC 27] ITEMIZED DEDUCTIONS | Gene...
2. Interest: [TOPIC 28] ITEMIZED DEDUCTIONS | Inte...
3. Taxes: [TOPIC 29] ITEMIZED DEDUCTIONS | Taxe...
4. Losses
4.1. Losses from Casualties: [TOPIC 30] ITEMIZED DEDUCTIONS | Loss...
4.2. Losses from Operation (NOLCO): [TOPIC 31] ITEMIZED DEDUCTIONS | Net ...
4.3. Losses from Wash Sales, Abandonment and Wagering Losses: [TOPIC 32] ITEMIZED DEDUCTIONS | Wash...
5. Bad Debts: [TOPIC 33] ITEMIZED DEDUCTIONS | Bad ...
6. Depreciation: [TOPIC 34] ITEMIZED DEDUCTIONS | Depr...
7. Depletion: [TOPIC 35] ITEMIZED DEDUCTIONS | Depl...
8. Charitable Contributions: [TOPIC 36] ITEMIZED DEDUCTIONS | Char...
9. Research and Development: [TOPIC 37] ITEMIZED DEDUCTIONS | Rese...
10. Pension Trust: [TOPIC 38] ITEMIZED DEDUCTIONS | Cont...
Also, if you want to know about the components of gross income, and how to compute an income, please watch the following videos.
1. Sale of Real Properties Classified as Capital Assets: [TOPIC 23] DEALINGS IN PROPERTIES | C...
2. Sale of Shares of Stocks: [TOPIC 24] DEALINGS IN PROPERTIES | C...
3. Sale of Capital Assets not Subject to Capital Gains Tax: [TOPIC 25] DEALINGS IN PROPERTIES | S...
4. Ordinary Assets and Capital Assets: [TOPIC 22] DEALINGS IN PROPERTIES | O...
5. Computation of Gross Business and Professional Income: [TOPIC 13] GROSS BUSINESS AND PROFESS...
6. How to Compute Compensation Income: [TOPIC 12] GROSS COMPENSATION INCOME ...
7. Final Income Tax on Certain Passive Income: [TOPIC 14] PASSIVE INCOMES | Final Wi...
I will upload videos every Monday, Wednesday and Friday.
4 سال پیش
در تاریخ 1399/08/07 منتشر شده
است.
15,784
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