Generally, people do not like paying taxes. And although the law frowns upon those who don’t pay taxes, it has no remedy against those who try every legal way not to pay. Making use of tax-deductible expenses are some of the ways in which you can reduce your liability to the taxman. To make full use of this loophole, it is important that you make an effort of filing your returns early so that through research, you may easily identify the areas where you can escape paying money that rightfully belongs to you. If you file your returns late, you are likely to miss out on some saving because you may end up leaving out certain expenses that are tax-deductible.
Bank Fees and Charges
The fees that the bank charges its customers is one of the most ignored cost when people are filing their returns. To be honest, the amount is not much for many people. However, if you run a business which has so many transactions, then you better try to take stock of how much money you are charged by your bank. If you do this, you will realize that there is a lot of money that you can save if you decide to tell the taxman to give you back what you paid when you shouldn’t have.
Auditing and Accounting Fees
Generally, auditing and accounting charges are not normally claimed because people prepare their final accounts after the end of the financial year. Once the auditors are through with their work, the amount that they have been paid can easily be left out from the total costs to be incurred in running the business. There are also other legal costs that are usually incurred, but which it seems many taxpayers are not usually so eager to get a refund for, or to include as a tax-deductible expense.
Subscriptions to Journals and Professional Organizations
Sometimes as a businessman, it may be necessary to be a member of an organization or society with a view to furthering your skills. You may also be required to buy professional magazines or journals. For this particular reason, being a member of the said group is necessary cost to your existence as a business. It is therefore important that you treat this expense as a tax-deductible expense to ensure that you do not pay taxes for what is purely and genuinely a business expense.
As you seek to reduce the amount of money that you are supposed to pay for the taxman, it is important for you to realize that you should not go overboard. This means that you should not try to evade paying taxes where you are supposed to pay. This can only land you in jail or cause you to receive a very stiff penalty.