you have to pay income tax on it. Unless you are an S corportation (or
maybe an LLC) which eliminates this double taxation.
is my best understanding on that.
brob writes:
> Well thats how it works right? lol
> ----- Original Message -----
> From: Dana Tierney
> To: CF-Community
> Sent: Friday, October 17, 2003 9:01 AM
> Subject: Re: Texas corporation question
>
>
> uh... you *are* kidding right?
>
> brob writes:
>
> > 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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