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> Second, income does not have any downside risk, you can't lose money That isn't correct. You can lose money with income. As a consultant you are on your ow
by austincheney 6y ago
> Second, income does not have any downside risk, you can't lose money
That isn't correct. You can lose money with income. As a consultant you are on your own for expenses and can end up earning a negative rate if your expenses exceed your income rate. Whether or now those expenses are deductible against your income taxes is immaterial to the more immediate accounting at hand.
- jandrewrogers 6y agoA consultant is running a business, it isn't wage income which is what most people mean by "regular income". I can deduct expenses against my consulting income but not my wage income. It is always possible to spend more money than you earn in wages but that doesn't mean you have negative income as a consequence. Other kinds of income can be negative even with no expenses. The point stands that there is no such thing as a negative paycheck.