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Tax deductible

floor_pie · 2005-10-26 21:52:26

When people say that an expence is tax deductible what does it really mean.If I rent business premisses for E50,000 a year how much of that is tax deductible.If I have turn over of 140,000 how much will I pay tax on if premises are my only expense? Is it a fixed amount,a percentage,or what?

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26-10-2005 10:52pm

#1

floor_pie

Closed Accounts Posts: 27 ✭

Join Date: October 2005

Posts: 24

When people say that an expence is tax deductible what does it really mean.If I rent business premisses for E50,000 a year how much of that is tax deductible.If I have turn over of 140,000 how much will I pay tax on if premises are my only expense? Is it a fixed amount,a percentage,or what?

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#2 27-10-2005 9:27am
kluivert

Registered Users Posts: 2,399 ✭✭✭

Join Date: June 2005

Posts: 2176

You need to take a basic business course on finances and taxes.

Tax is based on Adjusted Tax Profits and not accounting profits, although in most cases the two are the same.

To answer your question in relation to the items involved, the full amount of the rent is deductiable as it is an "expense incurred wholly for the purpose of the trade".

When you incurr an expense as that as of the day to day operation of the business this can be deducted from your turnover to arrive at your Profit. This profit figure is then subject to tax.

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