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by dboreham
3338 days ago
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Short answer: yes it would. Slightly longer answer: there are various ways allowed under the US tax code to receive income from a business and have it taxed not as salary; some of those ways have significantly lower marginal rates than if the income were salary; none of those tricks is going to do you much good at the $100k tier though. May as well think of it as salary for tax purposes. What you could, and likely would do as this business owner with $100k in profit, is you'd arrange for the business to buy things that are legitimate business expenses but also make your life nicer and/or cause you to need to spend less money from your personal finances. e.g. you need computers, phones, tablets to conduct your business so now you don't need to buy any of those things with your own money. You can't do this with cars, fwiw. |
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Since when? I've known a number of people who bought their vehicles with business money for a business writeoff. The least likely to survive audit was the carpenter whose Corvette was a "company car."
Yes, he had a separate (junky) work truck.