You can deduct legitimate business expenses to low your income, and thus income taxes. But make sure you can back up your expense claims with supporting documents in case you are audited. Here are the common supporting documents:
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- a sales invoice from your supplier a
- an agreement of purchase and sale
- a receipt
- Other voucher that supports the expenditure
If you pay cash for any business expenses, be sure to get receipts or other vouchers. Receipts should include the vendor’s name and the date.