Kinds of Taxes That Are Legally Deductible Kissimmee Orlando

When it comes time for a person to chose a tax service and file their taxes, there are so many different categories that they do and do not qualify for. That is why many feel that doing their own tax preparation is a cringe-worthy notion. A person is liable for paying a tax for services taken that have government taxes levied on them, yet how many of you wonder if you really should be paying that tax?

Most taxes might seem unfair but they are levied to ensure the continuity of the Government and the development of the country with the help of taxes.

To remove all doubts, here is a list of taxes that are legally imposed and deductible from you:

Consumption Tax

Imposed on payments made for the purchase of different products and services, the consumption tax is determined using the basis of the amount spent on or the usage of goods and services.

Sales Tax

Sales taxes are charged on all products or services that are offered to consumers and can cause an additional increase on the retail price of a product. Depending on the state or country, these taxes are subject to fluctuations and you can easily find that in one store a person might have to pay more than 8% of the original price as part of the taxes while in some other store, you might just have to pay 3% of the original price as a part of the taxes.

Property Tax

If you live on rent or in an apartment, you might be exempted from this tax. The government charges this tax on the basis of personal assets owned by a person. However, if you thought that property only referred to homeowners, here’s where you are wrong. The term property is used in a vast meaning to encompass all property and assets. This means, if you have a car, a boat or any other items other than a house, you are liable to pay the tax determined for those items.

Income Tax

This is one of the most major taxes that the Government relies on for income. Charged on the gross income of all working individuals and the on the net profits or net income of organizations, the income tax is a steady source of revenue since the earnings and amount chargeable tend to be predictable. Since the tax is divided and levied depending upon the person’s income, an individual who earns a sum of $20,000 annually will be charged less than a person who earns $40,000 annually.

If you require any more information regarding types of taxes, tax preparation and procedures involved with the latest updates, please feel free to contact us at 407-502-2400 for more information.

Freedomtax Accounting is a full-service business accounting and tax firm that offers corporate and personal tax services for Kissimmee, Hunter’s Creek, Buenaventura Lakes, St. Cloud, Orlando, Orange County, Osceola County, and surrounding areas in Central Florida. We specialize in bookkeeping, payroll, corporate taxes, incorporation services, personal tax returns, tax planning, and federal tax debt relief. Schedule your consultation with one of our accountants or IRS enrolled agents to solve any tax problems you may have, or if you wish to incorporate your new business.