3 ms·

How is being a consultant tax-optimized?

• rdl 12y ago
  My personal lifestyle, since I don't have kids (hate them), only really work on tech stuff or closely aligned hobbies like tearing down electronics or photography of electronics, travel only for conferences or to investigate potential work, etc., means that as a consultant virtually all of my outgoing expenditures tend to be fully deductible business expenses. I can buy a new HSM or 10GE NIC or something to figure out how it works as a business expense; that makes it ultimately 50% the cost of paying business/corp tax and then personal income tax and then buying it. This is all fully legal. Being a 1099 consultant is a bit worse; I've always done the "product company which does a lot of client services as well, and usually with multiple principals" -- which solves the PSC-fucking-of-professionals issue. I think if you're smart you can get a lot of this benefit from 1099. OTOH, a lot of people don't consider living in a government provided trailer, in hotels, etc. and eating on per diem/DFACs/with clients, only going on trips because there's a client engagement or conference, etc. to be a net win vs. ~30% income tax. (I am not an attorney; I am not your attorney. I am not an accountant. This is not legal, professional, or financial advice.)