The difference between an expense and a deduction is essentially that deductions are able to be claimed against your taxable income while expenses may or may not.

For example, a fine or penalty may be treated as an expense for accounting purposes,  but for tax purposes they are not considered to be a legitimate deduction.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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