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Purchasing a license that's identical to one you know is freely available doesn't fit the English language meaning of 'necessary business expense'. Maybe the ac
by slavik81 11y ago
Purchasing a license that's identical to one you know is freely available doesn't fit the English language meaning of 'necessary business expense'. Maybe the actual technical definition is a little different, but I don't see what fraud is being prevented by restricting donations if companies can just buy things for far above market value.
Let's say I fix patio11's backyard patio. Instead of requesting payment for the work, I fork Django and send him an invoice for a license. He pays me thousands of dollars for a commercial, OSS Django license, and writes it off as a necessary business expense.
It's the same scam whether it's a donation or a license purchase. I just don't get the point.
- infinite8s 11y agoFraud requires intent to defraud.
- zanny 11y agoYou're defrauding the IRS out of tax revenue by writing off OSS donations as business expenses when the product is free.
- infinite8s 11y agoThen you can structure the invoice to include an hour of consultation time. In any case, the transaction is a taxable event - it just depends on who pays (your corporation, the recipient, or the US government (if you are paying a nonprofit)).