The reason i ask this is because i want to give myself a salalry high enough as to report a lower profit cos i hate that fricken 40% tax deal
  ----- Original Message -----
  From: Dana Tierney
  To: CF-Community
  Sent: Friday, October 17, 2003 8:45 AM
  Subject: Re: Texas corporation question

  assuming it did not disappear in the last wave of tax changes -- remember I
  am not a tax lawyer and I was just unable to find any mention of it in the
  schedule C instructions -- I am pretty sure it was either $400 or $500.
  Probably $400 since that is the cutoff for paying Social Security taxes.

  brob writes:

  > Well how much profit do u have to make in order to live by the rule.
  >   ----- Original Message -----
  >   From: Dana Tierney
  >   To: CF-Community
  >   Sent: Friday, October 17, 2003 8:31 AM
  >   Subject: Re: Texas corporation question
  >
  >
  >   IRS has somethign called a hobby rule... you cant deduct stuff for a
  >   business that lost money two out of the last three years, or something like
  >   that. I am actually not seeing this in the instructions, but I remember it
  >   from past years
  >
  >   Dana
  >
  >   Kevin Graeme writes:
  >
  >   > To a limited extent, yes. But there are rules for how much you can deduct
  >   > for various things. When you go over those limits you generally have to
  >   > prove that you really needed to buy 25 computers, three cars, and a house
  >   > not for resale for the operation of a sole-proprietership (that's a
  >   > completely made up example.) Also, in some states a business must be
  >   > profitable over time or lose the business license and face IRS scrutiny.
  >   >
  >   > -Kevin
  >   >
  >   > ----- Original Message -----
  >   > From: "brob" <[EMAIL PROTECTED]>
  >   > To: "CF-Community" <[EMAIL PROTECTED]>
  >   > Sent: Friday, October 17, 2003 4:56 AM
  >   > Subject: Re: Texas corporation question
  >   >
  >   >
  >   > > Hey i was wonderin if u own a business and you use company money to buy
  >   > food or like a laptop, you can write those off as expenses right?  And would
  >   > it be possible to do it so much that the company dont make any profit.
  >   > Therefore nothing to be taxed on, since they only tax profits right?  err
  >   > yeah you know what i mean hehe
  >   >
  >   >
  >
  >

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