Income Tax

Schedule D ? Case I and II Scope Case I: revenue enhancement alter lucre of a self-employed trader. Case II:Tax adjusted Profits of a self-employed professional. Basis of Assessment Profits from the accounts done in 2005 atomic number 18 taxed in 2005. The accounts must be for a twelve-month period. Calculating Case I and II Profit on that point are three steps to work out a businesspersons taxable Case I and II profit. They are: 1.Start of with the net profit/ going for the profit and loss account. 2.Add buns any expenses, which are not allowable. 3. subtract any incomes that are not taxable under content I and II. E.g. rental income.

Treatment of Expenses Expense:Add backDo Not Add back ¨Any expense that is all told and exclusively for the businessP ¨Expenses not for the businessP ¨Owners tipple/salary ? anything owner takes for private useP ¨ governmental/charitable donationsP ¨Any expense incurred for the employeesP ¨Capital outlay ? cost associated with buying/improving fixed assetsP ¨ wear and tearP ¨Repairs to fixed assetsP ¨Bad debtsP ¨Increase in ecumenical purveyP ¨Increase in specific provisionP ¨Repaying capital sum of loansP ¨Business entertainmentP ¨Penalties/fines for breaking the lawP ¨Car lease costs Is this the right essay for you? Watch the video at a lower place to read 2 more pages now. or If you want to labour a full essay, order it on our website: Orderessay

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