Taxes and Tax Preparation
Is cash payment over Rs. 20000 for advance against Reimbursement of expenses Allowable as per Income tax Act or Rules?
What is the difference between accured expenses and provision?
Asked in Business Accounting and Bookkeeping
How do you monitor and control actual expenses and revenue against projected expenses and revenue?
Why did Romneycare Mitt Romney's HMO plan fail in Massachusetts?
Are executor expenses tax deductible?
Asked in Mechanical Engineering
What is maximum allowable stress?
The maximum allowable stress is that value beyond which, after applying an appropriate factor of safety its particular strength criterion is exceeded and failure occurs. For example, if aluminum strength in yield is 35,000 psi, and factor of safety is 1.25, its maximum allowable stress against yield is 35,000/1.25 = 28,000 psi
What does it mean to have a lawsuit cash advance?
Asked in Banking, Estates, College Finance
Can executor get money back from out of pocket expense?
Asked in Banking
can you get a cash advance without a checking account I only have a savings with direct deposit?
Asked in Salary and Pay Rates, How To
How to write a letter for salary advance from company?
Asked in World War 2, Douglas MacArthur
When the Japanese advance against his troops general MacArthur was forced to?
Asked in Landlord-Tenant Issues
Is security deposit paid in advance to protect landlords against nonpayment?
What is allowable and disallowable income and expenses?
Before preparing the statement of accounts for your business, you need to know what are the allowable and disallowable business expenses for tax purposes. Allowable Business Expenses Allowable business expenses are expenses that you can claim as deduction against your business income to arrive at your adjusted profit. General rule for claiming expenses You can generally claim a deduction against your business income for expenses that you incur wholly and exclusively to earn your business income. There are some basic rules: The expense must be related to your business - you must be able to show why you needed to spend the money to earn the income. Expenses that are capital in nature cannot be claimed. Expenses that are personal and private in nature cannot be claimed. Proper and complete records and source documents should be kept for at least 5 years to substantiate your purchases and expenses. For more information, you may wish to refer to the Starter Guide for the Self-Employed (194KB) Examples of Allowable Business Expenses Staff costs Employees' salary, bonus, allowances Compulsory CPF contributions by employer Retrenchment benefits Insurance for employees Employees' medical expenses up to 1% of their total remuneration (up to 2% if you as the employer are implementing either the Portable Medical Benefits Scheme or the Transferable Medical Insurance Scheme, has provided employees with portable medical shield plans or made ad hoc Medisave contributions for employees). Total remuneration includes employees' salaries, allowances, bonuses and allowable CPF contributions. Employee's remuneration excludes sole-proprietor and partner's salary, bonus, allowances, Medisave and CPF contributions as well as foreign workers levy. Running costs Rent, utility, and telephone charges for the business Stationery and postage fees Advertising costs Upkeep of business premises, equipment, and machinery Upkeep of motor vehicles such as motorcycles, pick-ups, vans, buses and lorries Cost of travelling on public transport in the course of business Repairs and maintenance of assets used for business Trade debts which become bad and irrecoverable during the accounting year Business licence renewal fee Capital allowances on fixed assets purchased for business use Qualifying expenditure incurred on renovation or refurbishment works Research and Development expenditure Finance and professional costs Interest on money borrowed for use in business Hire purchase interest Accountancy fees Legal fees incurred in recovering trade debts, renewal of leases Productivity and Innovation Credit NEW! Productivity and Innovation Credit Land Intensification AllowanceNEW! Land Intensification Allowance Back to Top Disallowable Business Expenses Examples of Disallowable Business Expenses Staff Costs Employees' medical expenses exceeding 1% of their total remuneration (2% if you as the employer are implementing either the Portable Medical Benefits Scheme or the Transferable Medical Insurance Scheme, has provided employees with portable medical shield plans or made ad hoc Medisave contributions for employees). Total remuneration includes employees' salaries, allowances, bonuses and allowable CPF contributions. Employee's remuneration excludes sole-proprietor and partner's salary, bonus, allowances, Medisave and CPF contributions as well as foreign workers levy). CPF contribution for your employees above the statutory limit Your own salary, bonus, allowances, and Medisave/CPF contributions Your own personal drawings, medical fees, income tax, insurance, and donations Private expenses Food, household and entertainment expenses for yourself, family members, and friends Cost of travelling to and from your home Insurance premiums for policies taken on the sole-proprietor's life Club subscriptions and entrance fees paid for the sole-proprietor's membership Medical expenses incurred on the sole-proprietor Sole-proprietor's personal income tax Travelling expenses for personal trips Private Hire Cars/Private Cars Expenses Expenses incurred directly or in the form of reimbursement on using private hire cars or private cars (E, Q or S-plate cars). Examples: repair, maintenance, parking fees, petrol costs These expenses are not deductible even if the private cars were used for business purposes Remuneration paid to related parties Remuneration paid to the sole-proprietor / partner's related parties such as his parents, spouse, children and siblings who are not working in the business. Excessive salary, bonus and commission paid to the sole-proprietor / partner's related parties that are not in line with market rate (not arm's length). Payments made to the related parties should commensurate with the actual services performed by them (reasonable as compared to an independent employee with the same qualification and experience performing the same services). Capital Expenses Business start-up expenses such as licence fee, registration fee, signboard fee Purchase of fixed assets Depreciation of fixed assets (Claim capital allowances) Renovation costs (except for qualifying expenditure which can be claimed under Section 14Q deduction) Capital contributions or withdrawals Legal fees and stamp duty on new lease agreement Other Disallowable Expenses Repayment of loans Interest on loans obtained for private use Fines and penalties Prayer expenses
Asked in Business Accounting and Bookkeeping
What is the matching concept in financial accounting?
The Matching Concept: A significant relationship exists between revenue and expenses. Expenses are incurred for the for the purpose of producing revenue. In measuring net income for a period, revenue should be offset by all the expenses incurred in producing that revenue. This concept of offsetting expenses against revenue on the basis of "causes and effect" is called the Matching Concept. The term 'matching' means appropriate association of related revenues and expenses. In matching expenses against revenue the question when the payment was made or received is 'irrelevant'. For example if a salesman is paid commission in January, 2001, for sale made by him in December, 2000. According to this concept commission expense should be offset against sales of December 2000 because this expense is incurred for producing revenue in December 2000. On account of this concept, adjustments are made for all outstanding expenses, accrued revenues, prepaid expenses and unearned revenues, etc, while preparing the final accounts at the end of the accounting period.
Asked in Debt and Bankruptcy, Bankruptcy Law, Credit
Will filing for bankruptcy affect a judgment against you?
Asked in Banking
How can you get a cash advance from a bank?
A cash advance is typically a loan taken out against a line of credit such as a credit card, the cash advance typically charges a substantially higher interest rate. In order to get a cash advance from a bank, one needs to provide the bank with a line of credit that they can use as collateral to the cash advance they provide, this is typically done through the use of a credit card.