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  • Deductions (1) 2 PDF

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    Methly
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    This document contains categories of business expenses that may be deductible for tax purposes, including materials and supplies, maintenance and repairs, advertising, transportation equipment expenses, insurance premiums, miscellaneous expenses, special expenses, interest expenses, and taxes paid. It provides details on the deductibility of prepaid interest and interest paid on unpaid taxes, as well as exclusions and limitations for interest expense deductibility.

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    DEDUCTIONS (1)2.pdf

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    This document contains categories of business expenses that may be deductible for tax purposes, including materials and supplies, maintenance and repairs, advertising, transportation equipment expenses, insurance premiums, miscellaneous expenses, special expenses, interest expenses, and taxes paid. It provides details on the deductibility of prepaid interest and interest paid on unpaid taxes, as well as exclusions and limitations for interest expense deductibility.

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    © All Rights Reserved
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    52 views1 page

    Deductions (1) 2 PDF

    Uploaded by

    Methly
    This document contains categories of business expenses that may be deductible for tax purposes, including materials and supplies, maintenance and repairs, advertising, transportation equipment expenses, insurance premiums, miscellaneous expenses, special expenses, interest expenses, and taxes paid. It provides details on the deductibility of prepaid interest and interest paid on unpaid taxes, as well as exclusions and limitations for interest expense deductibility.

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    © All Rights Reserved
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    of 1

    improvement

    (shorter)
    TAXES PAID:
    ● Can be claimed as
    deduction.

    MATERIALS AND MAINTENANCE AND ADVERTISING & OTHER


    SUPPLIES REPAIRS SELLING EXPENSE

    -used in the business -should not add value to the OPEX FOR TRANSPO
    property or prolonged its life EQUIPMENT

    INSURANCE PREMIUM MISCELLANEOUS SPECIAL EXPENSE


    FOR:Fire,storm,accident EXPENSE (PRIVATE SCHOOL)
    and the like

    INTEREST EXPENSE

    INTEREST FOR UNPAID PREPAID INTEREST LIMITATION OF INTEREST


    TAXES EXPENSE

    DEDUCTIBILITY: DEDUCTIBILITY: INTEREST expense where


    ● Interest paid on interest income (subject to
    UNPAID Taxes in Lump sum: final tax) earned on the other
    pursuit of trade and ● Only in the payment side is reduced by 33% of
    business of principal in full (for the interest income.
    lump sum payment)
    ● Deductible in full Periodic payments: Not deductible when
    ● Deductible in incurred as payment to a
    EXCLUSIONS: correspond with the related party.
    periodic payment.
    ● fines, penalties and Interest on "home
    surcharges on Illustration: mortgage" is not
    account of taxes. Principal : 1000 deductible"
    Periodic payment : 250
    Prepaid interest : 100

    Deductible interest expense:


    Taxes paid to n 100 x 250/1000 = 25

    OPTIONAL TREATMENT
    OF INTEREST EXPENSE

    If interest was incurred to


    acquire property to use in
    the business, the taxpayer

    MORENO, METHLY JOY B.

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