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Reply #6: Companies also have to have a stated purpose and show a profit. [View All]

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MedicalAdmin Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-13-11 02:14 PM
Response to Reply #3
6. Companies also have to have a stated purpose and show a profit.
If they have neither than they are not a business, they are a hobby. Commonly you can only run in the red for 5 years running (filed, not actual) before the IRS flags you for revokation of your business license.

That's why you can't just sell your house to your company unless that is part of your business purpose and you can post a profit... I once thought of this and found out that others have as well. ...
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  -On the top 2% not itemizing anymore... AngryAmish  Apr-13-11 01:43 PM   #0 
  - He didn't say "not itemizing anymore"  frazzled   Apr-13-11 01:46 PM   #1 
  - that is an excellent idea  AngryAmish   Apr-13-11 01:56 PM   #2 
     - It's not really charitable if you only do it for the deduction  frazzled   Apr-13-11 02:06 PM   #4 
        - Lets say an indivuals tax rate is 35%  Travis_0004   Apr-13-11 02:23 PM   #8 
           - We're talking top 2% of income earners  frazzled   Apr-13-11 02:29 PM   #10 
  - Business expense deductions have to be "ordinary and customary"  county worker   Apr-13-11 02:05 PM   #3 
  - Companies also have to have a stated purpose and show a profit.  MedicalAdmin   Apr-13-11 02:14 PM   #6 
     - That's why there are people who get paid to apply the tax code.  county worker   Apr-13-11 02:28 PM   #9 
     - I'm not rich but I own a business. Do I qualify ?  MedicalAdmin   Apr-13-11 05:30 PM   #11 
     - The IRS doesn't issue business licenses..  dems_rightnow   Apr-13-11 06:02 PM   #12 
  - Can't they make  safeinOhio   Apr-13-11 02:07 PM   #5 
  - He said 'limit itemized deductions for the top...'  Bluenorthwest   Apr-13-11 02:20 PM   #7 
 

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