How Can I Write Off Expenses on My Business’s Taxes?

what is a write off

A tax write-off is how businesses account for expenses, losses and liabilities on their taxes. Write-offs are a specialized form of tax deduction. When a business spends money on equipment or operating expenses, it can deduct that spending from its taxes. The same is true when a business loses money on uncollected debts and lost assets. With write-offs, businesses can lower their tax burden and help make their operations more affordable. Here’s how it works. For more help with how you could use write-offs, consider working with a financial advisor.

What Is a Write-Off?

A write-off is another term for a tax deduction on business income.

When businesses report their taxes they do so, broadly speaking, in two sections. First, the business calculates its operating profits for the year. It reports all income, losses and the resulting total profits. Second, it calculates the taxes that it owes based on those…

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