5 ms·

I don't really know how taxes work, but I'd imagine it's because somehow it lowers your tax bill for that year.

• airstrike 2y ago
  which is offset by the fact that you just lost a ton of money, so it doesn't really add up
  • recursive 2y ago
    Presumably you weren't planning to do that when you set it up. But sometimes people do lose money, particularly if they took a risk. If you take enough risks, you'll probably always have some losses ready to be realized.
• Dalewyn 2y ago
  19h's comment that started this sub-thread is a perfect example of the horrible state of civics education. I'm not an accountant and I definitely don't know taxes properly either, but I do know enough about taxes to know that businesses pay taxes on their net profit (gross income - losses = net profit). Those losses can be payroll costs, costs of goods, shipping and handling costs, rent, loan payments, insurance premiums, equipment purchases and upkeep, travel and lodging expenditures, and so on. Assuming that the losses are legitimate and can be audited if necessary, this is not tax evasion and to baselessly accuse anyone of it is literally defamation.
  • singleshot_ 2y ago
    The alleged tax avoider is in no way harmed by a kook on HN claiming illegal avoidance, so the elements of defamation are not met.