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>As a business owner in the U.S. I can opt to reinvest all revenue back into the business, Not entirely, no. Any of those reinvestments that count as capital e
by SilasX 7mo ago
>As a business owner in the U.S. I can opt to reinvest all revenue back into the business,
Not entirely, no. Any of those reinvestments that count as capital expenditures aren't immediately deductible, but only on a throttled schedule, which is why the concept of depreciation exists in tax law:
https://news.ycombinator.com/item?id=15061439 https://news.ycombinator.com/item?id=15061439
- jt2190 7mo agoI think I said that? > … it’s not typically like no taxes get paid. This is why I asked for elaboration: The poster was unclear about how, say, making capital improvements (and getting taxed on those over time) would somehow look suspicious to the IRS, as it seems like this is an extremely common practice. I assume it’s not that then, but something else which I’d love for the poster to share.
- SilasX 7mo agoYour comment made it sound like any re-investment back into the business would count as a cost that then cancels the profits that would be taxed. Even with your clarification, it still sounds like that. This is orthogonal to taxes that would be levied on things other than profit.