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Definitely not tax fraud. You’re allowed yo be bad at business if you can afford it. Afaik you are “running a legitimate business” as soon as you’re selling st
by Swizec 5y ago
Definitely not tax fraud. You’re allowed yo be bad at business if you can afford it.
Afaik you are “running a legitimate business” as soon as you’re selling stuff. Even if it’s github sponsorships for your opensource projects or whatever.
Fraud is what most people (probably) do — not report that income on your taxes.
- andrewmcwatters 5y agoYou can’t just form an LLC and start writing off your home furnishings as a “business expense” because you make $5 a month from a browser extension that some people donate to your Paypal account. That’s tax fraud. That’s literally what that is. It’s incredible that anyone would think otherwise.
- Swizec 5y agoYes it’s generally frowned upon to have more business expenses than revenue for multiple years in a row. But claiming your home office (a part of your home explicitly used for work) as a business expense is definitely not tax fraud. You can’t claim your kitchen tho.
- plorkyeran 5y agoClaiming a home office which you do not use exclusively for business purposes as a business expense is tax fraud. If you have a fake "business" which you spend an hour a month on then this is only useful if you have an extra room in your house that you're fine with effectively just boarding up.
- andrewmcwatters 5y agoYeah, the IRS makes it pretty clear what the "Business Use of Home" is, and it's not your bedroom.