These companies like Amazon, Airbnb and Uber STILL operate at a loss
14 Famous Companies That Aren’t Profitable
So yes they make a lot of money, but after all the deductions and spending, they say they don’t actually make any money.
Well it’s the same concept. If I write down I make 60k for my clothing business, then I need to write down how I also lost 70k. And you are a business so everything operates like a business. I’ll do some simple ones….
If you had to drive your car to deliver packages at work, wouldn’t the company owe you compensation for mileage? Well aren’t you dropping packages off and picking up materials for your business? That’s a standard deduction of I believe 6,000 or so right there. Using your personal vehicle for business.
I go on trips. So guess what. I write off my tickets, my meals, my Ubers, my hotel, everything. How? Take some clothes with me, give some out, take some flicks… now it was a work trip, I did photoshoots, I gave away promo clothes, I had meals, rental, hotel paid for just like I would if a 9-5 sent me on a business trip. Except they compensate you. Well your llc didn’t compensate you. So that’s a business expense.
I can also buy clothes for myself. Samples. It’s why rappers get to write off chains as promotional items if they say the label name or artist name (as the artist is a private contractor). It’s why labels call rapper tax write offs. Cause they lll give them a fake budget and write all types of shyt off around his name, but never invest the real money in him.
And yes you need receipts. Yes you can bend a dinner date into a business meeting and the IRS isn’t hunting down ruby tuesdays to see if you discussed business that night (all you have to do for it to be a business meeting.) and yes if you keep doing this or do some crazy shyt, they will come knocking.
But again. It’s not illegal. In fact, if the irs thinks you post too big a loss for too many years, they’ll shyt your business down and label it a hobby. But it’s no charge unless you flat out lying. But then if they shut you down, like trump, just open another one and reset the clock.
it’s the america way. How you think the rich get these “loopholes”. Ain’t nothing much but looping up some bullshyt losses and making everything you do, somehow apart of the business
You know that's after write offs right? Business owners get taxed after their expenses while you get taxed before. You can also use the write offs to off set income from a regular 9 to 5. In addition, if you are paying yourself regularly you likely you have an S-corp and taking rest out via asset loans or taking it out after a year and a day so you only have to pay capital gains taxes.
You should educate yourself instead of trying to throw shade. What you don't know about business is vast.
