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by SilasX
90 days ago
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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 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 |
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> … 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.