Thread: Money Income Tax Question
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Old 12-28-2011, 09:31 PM   #6
Saul Good Saul Good is offline
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Join Date: Jul 2005
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Quote:
Originally Posted by CHENZ A! View Post
For some reason I thought that you'd claim it as a deductible at the end of the year or something. I'm quite ignorant when it comes to this subject.
If you pay for it, and it's a legit business expense, you can deduct what you paid from your annual earnings. (If you earned $30,000 and paid $100 for it, you would pay tax on $29,900 worth of income.) That's different than getting it for free. You just wouldn't pay income tax on the money you spent on the business expense.
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