Deduction of actual costs: How and why?

Each taxpayer taxed on income has the ability to deduct business expenses in two ways. The automatically which is a 10% reduction or deduction of expenses if it is more interesting for him. In this case certain rules must be respected.

-The details of the charges must be stated on the last page of the tax return for the current year in the "other information". If this space is too small, it is possible to add a note to the statement attached that includes all the explanations.

-Supporting documents must be kept by the taxpayer for 3 years. It is therefore very important to keep the bills for travel expenses, the cost of vehicle maintenance, etc ...

-Taxpayers may deduct only the expenses related to professional activity. The costs for private should not be considered.

-The expenses incurred must be paid in the year of taxation. If this is not the case, see some costs on the statement of the following year.

-The cost of traveling between home and workplace are part of the actual costs to be deducted. If this distance exceeds 40 km, only the distance will be taken into account. The excess kilometers will be deductible if the taxpayer can prove that it performs the route for specific reasons (difficulty of finding a job close to home, changing health status of the employee or spouse ...) and not for personal reasons. In this case, a single round trip is deductible. The round trip for lunch will be considered only in special cases.

-Parking fees are deductible.

-The toll fees are deductible.
-Moving expenses are deductible to the extent that it results in obtaining a new job.

-The cost of education, training and documentation are deductible.

-The jobs requiring special outfits are able to deduct the cost of dry cleaning.

-The union dues are tax deductible.

It is especially important to remember that the actual costs require the taxpayer to keep his documents for a period of three years after payment.