How to generate costs in a sole proprietorship?

Not all business expenses are tax ductible. Some are consider by the law as non-ductible expenses or non-tax ductible expenses. Each tax ductible expense must meet certain requirements. So what can be expens in a sole proprietorship?

What requirements must an expense meet in a sole proprietorship if we want to duct it from tax?
Such an expense must be document. You ne a tax document, a bank transfer or an invoice that proves when, to whom and for what you paid in connection with achieving, securing or maintaining income. In addition, the period of issue of such a document or invoice must fit within the appropriate settlement period. All invoices and the list of costs must be kept in the Tax Book of Income and Expenditures, i.e. in a simplifi version or in Accounting Books – in the case of individuals and companies keeping full accounting.

How to generate costs of obtaining income in a sole proprietorship?

There is a simple rule for every sole telemarketing data proprietor tax expense, you have to be able to defend it to the Tax Office. In the case of many items, the situation is not black and white and costs can be consider tax ductible only if they meet certain conditions. Such costs are:

Advertising and promotional items that

Must be mark with the name, company logo or trademark of the item supplier.
Business travel expenses, including us phone number  transportation and accommodation. A business trip means a short-term assignment of an sole proprietor employee to perform their duties outside the contractual place of work. Accommodation during a business trip must be provid in a non-cash form. Everything should be paid for in advance and an invoice should be issu for each of them.
Costs of earning income when working remotely or at home
When running a home-bas business, personal and business expenses are combin. It makes no sense to include all the costs associat fax database with maintaining a home in your income tax duction, but running a home-bas business does increase your standard housing expenses. Find a middle ground and include in your tax return the costs that are truly relat to earning, securing and maintaining taxable income. If you use something for both personal and business purposes, plan for this and use only the portion of the income duction for the us item.