Friday, February 29, 2008

Analysis of Income and Investments

For tax purposes, income can be divided as ordinary income and capital gains. Ordinary income includes compensation for personal services such as wages and salaries, business profit and interest income from invested funds while capital gain generally comes from the sale of investment property.

As with any business enterprise, conducted for profit, ordinary and necessary costs associated with day-to-day operation and management may be deducted from income.

2 comments:

Firebug4u said...

The tax planning and and a complete understanding of the financial structure of a company requires a lot of experience and an expert financial accountant can do it.

Indranil Ganguly said...

hi..I do agree with you, my firm has Accounting experts who does act a tax planning and balance sheet making experts.