Post #2404602
2026-03-27 17:13 UTC
@rrustema020@mastodon.nl @peterbrown@mastodon.scot @MrAndrewD@aus.social @notjustbikes@social.notjustbikes.com Businesses have costs, and those costs of doing business are deduced from gross revenue - taxes are paid on profits, not revenues. Business owners sometimes spend money from their profits on nice things that they don't strictly need, in order to reduce taxable profits, as long as they can claim the nice things as legitimate business expenses.
Replies (1)
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@dneary@mastodon.ie 2026-03-27 17:29
@rrustema020@mastodon.nl @peterbrown@mastodon.scot @MrAndrewD@aus.social @notjustbikes@social.notjustbikes.com Every country has rules about what you can claim as legitimate business expenses - clearly gas and diesel for delivery vehicles and work vans is a legitimate business expense, but things like nice trucks, computers, etc. are often fully deduced from the gross while the company could fulfill the functional need with something cheaper.