5 ms·

I don't understand his comment, he made a lot of money and thinks he would of been better off if he had a ton more expenses or something?

Marazan 11y ago
There are all kinds of deductions available to corporations that are not available to sole traders.
- maxerickson 11y ago
  Which ones aren't related to expenses?
- ryanwaggoner 11y ago
  Such as? I don't believe this is really true, would love to find some examples though.
- themartorana 11y ago
  This isn't true at all. Well, not that I can think of. Solo is tough in that it's easy to "pierce the corporate veil" when it comes to legal liabilities and whatnot, but there's not a thing I can write off now that I couldn't as a solo - well save everything related to employees, but, ya know, "solo." But sub-contractors are a perfectly acceptable expense.
- dboreham 11y ago
  If that were true (doubtful) then just create a corporation. Cheap and easy, at least here in these United States.
- megablast 11y ago
  Things he could have deducted: Electricity, phone, internet. If he worked at home, then part of his rent. Travel if he worked at home and at an office.
  - usaphp 11y ago
    He can only deduct it partially based on a proportions he uses this for the business. I am pretty sure he uses electricity and Internet for personal stuff too. And to calculate rent deduction for a home office you have to measure your living space and space that you use solely for business, the deduct a percentage of rent based on a space it occupies. Based on my experience the deduction amount is quite pathetic...
- giarc 11y ago
  He likely worked out of his home, I wonder why he didn't deduct office space. Likely could have deducted internet cost as well.
SolarNet 11y ago
He wouldn't have paid so much in taxes. But he still would have not had the money. He's being an honest citizen and just giving the government the money, as, like he said, all he really did was work with his own knowledge.

Marazan 11y ago

There are all kinds of deductions available to corporations that are not available to sole traders.

maxerickson 11y ago
Which ones aren't related to expenses?
ryanwaggoner 11y ago
Such as? I don't believe this is really true, would love to find some examples though.
themartorana 11y ago
This isn't true at all. Well, not that I can think of. Solo is tough in that it's easy to "pierce the corporate veil" when it comes to legal liabilities and whatnot, but there's not a thing I can write off now that I couldn't as a solo - well save everything related to employees, but, ya know, "solo." But sub-contractors are a perfectly acceptable expense.
dboreham 11y ago
If that were true (doubtful) then just create a corporation. Cheap and easy, at least here in these United States.
megablast 11y ago
Things he could have deducted: Electricity, phone, internet. If he worked at home, then part of his rent. Travel if he worked at home and at an office.
- usaphp 11y ago
  He can only deduct it partially based on a proportions he uses this for the business. I am pretty sure he uses electricity and Internet for personal stuff too. And to calculate rent deduction for a home office you have to measure your living space and space that you use solely for business, the deduct a percentage of rent based on a space it occupies. Based on my experience the deduction amount is quite pathetic...
giarc 11y ago
He likely worked out of his home, I wonder why he didn't deduct office space. Likely could have deducted internet cost as well.

SolarNet 11y ago

He wouldn't have paid so much in taxes. But he still would have not had the money. He's being an honest citizen and just giving the government the money, as, like he said, all he really did was work with his own knowledge.