Income Tax Added as an Expense
by Kyle
(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?
Hi Kyle,
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.
Comments for Income Tax Added as an Expense
|
||
|
||
[?]Subscribe To This Site
Free eReport When You
Subscribe To My Newsletter
The Bookkeeper's Notes
Enjoy A Tea Break With
Me Today. Let's Chat!
Use the search feature to quickly find the
information you're looking for.
Join Me On Facebook
Help support this site by "liking" me! Here's where I post current information.
Listed Under Websites NOT Local Business.
This website is NOT associated with the business operating in Bonnyville AB.
