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What is a short tax year?

Submitted by Rebecaz on Sun, 03/05/2017 - 19:22
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What is a short tax year?

I have heard about short tax year. Can you please explain what is it actually?


Suppose you started your business in the middle of June, and you want to file your taxes on a calendar-year basis, then the business will have a short tax year(less than twelve months). Your taxable income and expenses will be calculated for only 7.5 months.


Submitted by Barbara Delinsky on Mon, 03/06/2017 - 06:09

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If a businessman starts the business after the first month of the tax year or ends the business before the last month of the tax year, then the businessman will have a short tax year (less than twelve months).

For example: If you started your business on July 1, 2014, and went out of business on November 30, 2014


Submitted by Sanders Patricia on Wed, 03/08/2017 - 05:20

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You will also have a short tax year if you move out of the country in less than a tax year. In such a situation, the last tax you pay will be a short tax year.
For example, if you plan to move out mid-year or suppose you're on VISA and you have to go back if it expires or your decide not to renew it.


Submitted by Good Nelly on Fri, 03/10/2017 - 03:16

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Generally, taxes for short tax year are annualised. If you're self-employed, then your tax will be decided based on your actual self-employment income for the said short tax tenure.


Submitted by paulcahill80 on Thu, 03/23/2017 - 05:09

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