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In the US, I'm pretty sure you couldn't get away with this. Business expenses are held against income to determine how much tax you pay. There are strict guidel
by whamlastxmas 7y ago
In the US, I'm pretty sure you couldn't get away with this. Business expenses are held against income to determine how much tax you pay. There are strict guidelines on what counts as a business expense versus a personal expense. I suspect spending a ton on groceries and rent/mortgage for a residential address would raise some flags and get you audited.
- Gibbon1 7y agoThere is always the classic income tax dodge. Incorporate, then hire your wife, mistress, children, and random family members.
- whamlastxmas 7y agoIf you're employing people in lower tax brackets that might save a little bit of money if they funnel it back to you. But I don't generally hear about that tactic. It would be more relevant if you were wanting to bleed a not for profit entity where there are legal caps on the types of income executives can make. The classic tax dodge is the $1 salary and getting taxed at capital gains rates instead
- Gibbon1 7y agoBack when top marginal rates were 70% And corporate/capital gains taxes were also high. It was a classic thing.