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Can businesses include income tax in their operating expenses?

3 Answers

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  • 8 years ago
    Favorite Answer

    Not to determine profit for tax purposes.

  • 8 years ago

    Generally speaking, an income statement is prepared in the following manner:

    Income $10,000.00

    Less Expenses $ 2,000.00

    Profit before Taxes $ 8,000.00

    Provision for Taxes $ 1,000.00

    Net Profit After Tax $ 7,000.00

  • Judy
    Lv 7
    8 years ago

    It's not deductible for tax purposes, if that's what you're asking.

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