im autistic and have reading disabilities so i dont understand anything google says 🥲
In: 0
No argument with the other answers.
The way I learned it was: you pay taxes on profits. If you spend money on new equipment or marketing, those expenditures reduce profits, so those expenditures are much cheaper than the price paid.
If you have a 10% tax rate and you have an expense of $100, the you reduce your profits by $100, and one of the outcomes of this is you pay $10 less tax (all other things being equal or out of consideration).
So you can look at it like the expenditure was really $90, or you were able to keep $10 in profit.
Latest Answers