What is the meaning of allowing an expense in taxation? and Mr Šemeta answering one of the questions posed by MEPs during his hearing

What is the meaning of allowing an expense in taxation?

I am confused between deductible, not deductible and allowing and disallowing. My taxation notes say that provision for bad debts are not allowed whereas actual bad debts are allowed.
I am having difficulty in understanding how accounting profits are adjusted to come up with taxable profits..... what items should be added to accounting profits what should be subtracted?


Taxation best answer:

Answer by Mike
For a list of deductible personal expenses, visit www.irs.gov.

If you are self employed or have a small business you can claim what are known as Section 179 expenses.

Generally, you should be able to write off bad debts to your business or personal account.

Always best to check with your tax advisor.

For payroll processing, I like PayChex and they are offering 30 days free right now at 888-924-1776.

Taxation

Mr Šemeta answering one of the questions posed by MEPs during his hearing


Image by European Parliament
Hearing of Mr Šemeta, designate Commissioner for Taxation and Customs Union, Audit and Anti-Fraud (Brussels, 12 January 2009).

Before the new European Commission can take office the proposed new Commissioners must pass often tough Question and Answer sessions in front of Members of the European Parliament. Each committee questions the person who will be responsible for that dossier on issues ranging from their CV to political views. The last time this happened not all candidates passed muster as MEPs must sign off on them before they can take office.

Read more: www.europarl.europa.eu/hearings/default.htm?language=en

©European Parliament/Pietro Naj-Oleari

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