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How Does a Tax Write-Off Work?

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By Alina Bradford
eHow Contributing Writer
(1 Ratings)
  1. In business, when a person buys equipment needed for work or has travel expenses, they can be counted as tax write-offs. Write-offs are deductions from the amount of taxes that a person has to pay.
  2. Some items that are considered tax write-offs are computers, office supplies, work attire, office furniture and training and reference materials. Transportation mileage can also be considered a tax write-off.
  3. To claim these write-offs while filing their taxes, a person has to have proof of the item or millage. This is often done by keeping receipts and keeping a log of millage. Some people have credit cards that they use only for business transactions. When it is time to do their taxes, they use the credit card summery as proof of write-off purchases.
  4. The person or their accountant will then add up the expenses and deduct this number from the amount of money earned for the year.
  5. Having a lower income lowers the amount of taxes a person has to pay in a year.
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eHow Article: How Does a Tax Write-Off Work?

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