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Income Tax Blog > Income Tax Tips > Tax Shelter Tips
Tax Shelter Tips - Tax Deduction, Advertising Expenses, Car Expenses, Deductible Compensation, Depreciation, Home Office, Losses, Miscellaneous Expenses, Rent, Repairs And Maintenance, Retirement Plan, Tax Ane Interest Expenses, Travel And Entertainment
A tax deduction or a tax-deductible expense, is an item which is subtracted from gross income in order to arrive at the taxable income.
Effectively, the taxpayer pays no income tax on the amount of money he spent on tax-deductible expenses.
For example, if an individual earns $50,000 in a year and gives $5,000 to tax-deductible charities, he will end up paying income tax as though he had earned only $45,000 that year.
In this way governments encourage certain types of spending such as charitable contributions, home ownership, entrepreneurship, environmental protection, and education.
Corporations enjoy a wider range of possible tax deductions, as they are taxed on their income, and in order to calculate a corporation's income, the corporation simply subtracts its expenses from its revenues.
Hence, all expenses of the business -- if the expenses can be demonstrated to have been made for business purposes -- are tax deductible.
In our website, you will be able to receive many useful tips on the following:
 Advertising Cost
Home Office Expenses
Rental Cost
Deductible Compensation
Retirement Plan Expenses
Repair & Maintenance Cost
Depreciation Expenses
Car Expenses
Travel & Entertainment Cost
Tax & Interest Expenses
Losses
Miscellaneous Expenses
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