Taxable Income: What It Is, What Counts, and How to Calculate
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What is taxable income for a small business? Your taxable income is NOT your total sales. It’s what’s left after you subtract eligible business expenses and deductions from your revenue. In simple terms: 💰 Money coming in ➖ Ordinary & necessary business expenses = Taxable income Expenses like rent, supplies, mileage, software, insurance, and other operating costs reduce what you’re actually taxed on. That’s why keeping good records and claiming every deduction you legally qualify for matters —
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