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is it safe to say reinvesting is counted as a loss for tax purposes then? How does the tax angle come into play, taxes are only on profit income not revenues?
by jxramos 6y ago
is it safe to say reinvesting is counted as a loss for tax purposes then? How does the tax angle come into play, taxes are only on profit income not revenues?
- graeme 6y agoYes, taxes are only on profits. You don’t need a loss per se, you just need to reinvest everything. The results would be crazy otherwise. Tech makes near 100% margins, grocery about 2%. But both industries would pay the same level of tax on 100% of revenue if it wasn’t profit based.