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Common Tax Deductions - Different Kinds In Different Places!

Common Tax Deductions - Different Kinds In Different Places!

There are numerous kinds of taxes imposed upon the people in different countries. While it is almost impossible to mention almost all of them, we will surely be putting light upon a few common tax deductions and few kinds of taxes which people have to pay when living in a country. 

If you are starting an online business, you have to follow a few rules which will help you to deal with your online sales tax. It is better if you take the help of a professional accountant or a tax accountant which will give you better idea of your online sales tax. Below there are three of the business taxes which you need to know about:

  • Estimated taxes
  • Employment taxes
  • Sales tax

What is online sales tax?

Before we go on to sales tax, let us first take a look at the online sales tax. Sales tax is a kind of pass-through tax which is imposed on the customers in many of the countries. This means that a small percentage of the sale will be added in the bill of the customer. It is the customer who will pay the tax but you will have to collect and deposit the tax.

Sales tax on internet sales

If you operate an online sale, it will give you the liberty to sell anyone anything all across the world. However, with this kind of freedom, it involves the sales tax. Many of the sellers on the internet are unaware if they should be collecting the tax from the customers.

Nanny taxes

A nanny tax usually exists because according to the IRS a nanny or a household helper is the tax payers employee and not an independent contractor who can deal on her behalf. The tax payer then becomes the employer and has to bear the responsibility of paying the social security taxes, medicare as well as the governments unemployment taxes on the salary that they pay to their employees. 

Gas taxes

A gas tax is also known as petrol, gasoline as well as fuel duty and it is imposed on any state when the fuel is sold. In the majority of the countries, fuel tax is applied on the fuels which are used for transportation. Fuel rates are taxed at a very low rate and they do not increase a lot as well. In fact, there are many countries where the gas taxes have not been increased or updated since decades now. 

In some countries, fuel tax is a source of revenue for the state which can then be used to maintain the infrastructure of the country. Apart from that, fuel tax can also be used as eco tax in order to protect the environment and keep it safe.

Direct seller taxes

If you are a direct sales consultant, your job is to buy and sell the merchandise. You must, however, have a complete record and inventory so that you can keep record of the purchases made in the beginning of the year. This inventory is also important so that you make the entry about the purchases you will make in the later years.

Charitable deduction taxes

Charitable deduction is the contribution and donation to charity with deductions for tax payers. Charitable deductions allow the tax payers to deduct the contributions they do to qualify for the charitable property and cash. It does have a few limitations though. 

Charitable tax deductions are applied to cash and money. They can not be applied to material things such as clothes and furniture etc. however, in the current bad situation sometimes non-cash charity is what is required specially in urgent situations. 

Some help for you to plan out your taxes!

After reading the strategies we are now going to mention the five ideas in order to do the tax planning for the upcoming year. These five ideas are:

  • Take a look and evaluate your alternate and primary locations of residency 
  • Have a look at the charitable deductions
  • Take a look at your mortgage debt
  • Find out more about college saving plans and invest your money there
  • Keep track of your portfolio along with keeping the tax efficiency in your mind

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