This is an article on money management, tax management, how to make optimal use of your money and resources to save taxes. I got this interesting information from my tax consultant who did file my taxes for this fiscal year. He gave me an interesting information on mid year convention used for tax deductions. This tip can be used if you are an enterpreuner and you own a home based business.
If you are purchasing a laptop (computer system to make it simple) relevant to your business during a year, it would be great if you make the purchase during first 6 month period. Say if you make a purchase on July 1st then the concept of mid year convention comes into picture and you're eligible for a less tax deduction percentage. Hence plan your purchase to be in first quarter (first 3 months - January to March) to save better.
If you are purchasing a laptop (computer system to make it simple) relevant to your business during a year, it would be great if you make the purchase during first 6 month period. Say if you make a purchase on July 1st then the concept of mid year convention comes into picture and you're eligible for a less tax deduction percentage. Hence plan your purchase to be in first quarter (first 3 months - January to March) to save better.
