In the tax law, there is a way to reduce taxes, that is, to make use of previous losses. This paper will introduce this method in detail to help readers better understand the tax law.

Use losses to reduce taxes

If you had a loss of100000 before, but now your profit is only 30000, then you can deduct the previous loss from the profit of 30000. According to this calculation method, the tax you can reduce or exempt is (100,000-30,000) *33%.

Reasonable financial planning

It is a legal method to use losses to reduce taxes, but it needs reasonable financial planning. When conducting investment and business activities, we need to pay attention to risk control and fund management to avoid excessive losses.

Understand the provisions of tax law

When using losses to reduce taxes, you need to understand the provisions of the tax law. Different industries and enterprise types have different tax laws. Therefore, it is necessary to understand the relevant tax laws and regulations when making financial planning.

Choose the right scheme

When making financial planning, you need to choose a suitable scheme. Using losses to reduce taxes is one way, but it is not suitable for all cases. Therefore, when making financial planning, it is necessary to choose a suitable scheme according to the actual situation.

Consulting professionals

In financial planning, if you encounter problems, you can consult professionals. Professionals such as tax agents and financial consultants can provide professional advice and help to help you make better financial planning.