Category: Bookkeeping
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Tax Shield Formula, Examples, Interest & Depreciation Tax Deductible
This amount can then be subtracted from the company’s taxable income, therefore lowering their tax liability. If your out-of-pocket medical costs were more than 7.5% of your adjusted gross income (AGI) last year, you’ll gain this tax shield. You had $10,000 of medical costs last year, meaning you’ll receive a $6,250 deduction for medical expenses.…