taxes

taxes

by Ella Risch -
Number of replies: 2

when businesses let their workers "write off" things as work purchases or pay for their gas, come tax return how do they get their money back and who sets the budget for those expenses?

In reply to Ella Risch

Re: taxes

by Jedidiah Sian -
Prof. Weaver can correct me if I am wrong, but I believe that companies do not necessarily "get their money back" when it comes to tax season for the "write offs" it just any expenses that you can deduct from your taxable income. You just owe the government less than what you would have. I would assume that the "higher ups" like the CEO or someone in charge of the finances would be the ones who regulate those expenses. Again, Prof Weaver can give you a better response. I am just here for the forum grade.
In reply to Jedidiah Sian

Re: taxes

by Danny Weaver -
Jed is right in essence, and since I am not a CPA, I cannot shed too much more light, but think of it this way. Say I earn $800,000,000 a year. Any additional dollar I earn is taxed at 35%, so I only take 65 cents home. If I use that dollar towards a tax deductible purchase, say donating it, I do not pay the tax. In this case, if I donate that dollar, I still lose the dollar, but the nonprofit I donate it to gets a whole dollar. If I use it towards a company car, I still don't earn the dollar, but my company does get a car.