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?

image of fancy scroll lines

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

Click here to add your own comments

Mar 15, 2011
by: Kyle

Thank you so much for your quick response. You're wonderful!

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Home Business Taxes.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better

Your Learning Curve!


Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

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.

A Handy Reference