Income Tax Added as an Expense
(St Catharines ON Can)
As an example, if I owed $10,000 in income taxes last year, can I add this to the company books as an expense (and an Accounts Payable), then use it to offset income in this year's income tax form? Or is this really just a "personal" debt?
I am assuming you are asking the question because you are a sole proprietor. If this is the case, then income taxes do not get recorded on your income statement and do not show as Income Tax Payable on your balance sheet.
You would only record your income tax expense / payable
if you were incorporated.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.