Archived Posts » 59,789,155
talk to me about starting a "tax loophole" business...
2/27/2012 10:01:30 AM
Can't think of a better group to ask this to than the brotherhood at AR15.com. But we just got our taxes done last week and the accountant told us that with the wife's new profession as a CRNA, we are paying the "rich people tax" in the 33% bracket. But looking closer at the W-2's (wife couldn't find them at first and he started calculating just using last paycheck stub from last year) he found her IRA contribution that dropped us down to the 28% bracket.
He told us we need to start a business that we could start writing off some of our household expenses and paying the kids a paycheck. he has a financial adviser that works with him, we need to make an appointment to do it.
I'm just looking for some insight here before I start paying this guy by the hour.
Our income is around the $240,000 mark, combined. Can and will fluctuate with her OT hours and bonuses.
Some of our current major expenses:
Car insurance on 5 cars. Three drivers under 25. Around $4K a year.
Gas for these 5 cars. About $700 a month.
Mortgage around $1450
And the wife loves to travel to the beach, skiing trips, etc...
Dining out....don't even want to add that up.
Tuition & books to Colleges, about $15K a year.
Just looking for a legit loophole where we can start a consulting business or something. She's even thinking of a beach condo purchase as a rental.
Tips? Ideas??
He told us we need to start a business that we could start writing off some of our household expenses and paying the kids a paycheck. he has a financial adviser that works with him, we need to make an appointment to do it.
I'm just looking for some insight here before I start paying this guy by the hour.
Our income is around the $240,000 mark, combined. Can and will fluctuate with her OT hours and bonuses.
Some of our current major expenses:
Car insurance on 5 cars. Three drivers under 25. Around $4K a year.
Gas for these 5 cars. About $700 a month.
Mortgage around $1450
And the wife loves to travel to the beach, skiing trips, etc...
Dining out....don't even want to add that up.
Tuition & books to Colleges, about $15K a year.
Just looking for a legit loophole where we can start a consulting business or something. She's even thinking of a beach condo purchase as a rental.
Tips? Ideas??
2/27/2012 12:07:17 PM
Rental property has given me some good tax shelter in the past.
If your wife is able to get any "consulting" jobs for big pharma or even just going educational in services of other nursing staff you should be able to allocate a vehicle and some travel expenses to those speeches/meetings/seminars. Even if she doesn't get paid or the pay is little to nothing you would be ahead.
My family is in the pharmacy business and growing up all our vacations were centered around pharmacy related conferences that provided continuing education.
Grove
If your wife is able to get any "consulting" jobs for big pharma or even just going educational in services of other nursing staff you should be able to allocate a vehicle and some travel expenses to those speeches/meetings/seminars. Even if she doesn't get paid or the pay is little to nothing you would be ahead.
My family is in the pharmacy business and growing up all our vacations were centered around pharmacy related conferences that provided continuing education.
Grove
2/27/2012 1:42:00 PM
Your income is too high to get any benefit from a rental. You won't get to write off any losses from that.
As for the rest of your ideas, you can only write off a portion of the expenses and they need to be directly related to business. You can't start a home based business and deduct your insurance and gas at 100% for all your cars, only the portion that is business related.
There is no way your tuition will ever be a business deduction so that is out as well.
You can get a home office deduction if you work out of your home. However, the area must be used regularly and exclusively for business. Also, you can only take a home office deduction if you do not have another office anywhere else. If you have another office, you are not eligible.
Meals and trips must be business related, not personal.
A good thing to remember is that to take a loss, you must have actually lost money. You are talking about losing a dollar to save 33 cents in tax. Doesn't seem like a smart idea to me. There is no point to begin a business unless you hope to make money, not lose it. If you plan to lose money and do so consistently, you will get audited and any savings you had from tax will be eaten up in professional fees. The IRS has been very aggressive lately.
As for the rest of your ideas, you can only write off a portion of the expenses and they need to be directly related to business. You can't start a home based business and deduct your insurance and gas at 100% for all your cars, only the portion that is business related.
There is no way your tuition will ever be a business deduction so that is out as well.
You can get a home office deduction if you work out of your home. However, the area must be used regularly and exclusively for business. Also, you can only take a home office deduction if you do not have another office anywhere else. If you have another office, you are not eligible.
Meals and trips must be business related, not personal.
A good thing to remember is that to take a loss, you must have actually lost money. You are talking about losing a dollar to save 33 cents in tax. Doesn't seem like a smart idea to me. There is no point to begin a business unless you hope to make money, not lose it. If you plan to lose money and do so consistently, you will get audited and any savings you had from tax will be eaten up in professional fees. The IRS has been very aggressive lately.
2/27/2012 1:52:44 PM
I have always heard a "home office" is a sure ticket for an IRS audit. Any truth to that?
2/27/2012 2:35:21 PM
Years ago we had a home business that was legit, we tried to make a go at it. The wife was writing life care plans for injured workers attorneys. We did a lot of traveling, meals out with attorneys, a dedicated area for an office (now a bedroom) We did get a lot of "perks" with this go at it. The only positive outcome was the motivation the wife got to go back to school to become a CRNA.
I'm just digging around to see if there is anything we can do to provide some of those perks we enjoyed before, but with less emphasis on trying to make the business a success.
I guess this is payback for my taxes in 2009 when I paid in $800 and got back $8000
This year we paid about $40K in taxes after our refund.
I'm just digging around to see if there is anything we can do to provide some of those perks we enjoyed before, but with less emphasis on trying to make the business a success.
I guess this is payback for my taxes in 2009 when I paid in $800 and got back $8000
This year we paid about $40K in taxes after our refund.2/27/2012 5:03:11 PM
Home-based FFL/SOT. You will turn your large fortune into a small one in no time flat. 
Works best if you have a friendly CLEO to sign demo letters on post-samples.
Works best if you have a friendly CLEO to sign demo letters on post-samples.
2/27/2012 6:55:02 PM
Look into forming a corporation to own your cars and / or house. Your adviser will know a lot more about how to do this legally and properly.
Other things are like forming a corporation and get paid your income in terms of a dividend. Is your wife part of an anesthesia group or does she work directly for the hospital? I know a few people in the medical world who work for a corporation which pays them a very basic but still audit proof salary, and then they receive the majority of their yearly income via a dividend for owning the company they work for.
Example; your wife works for ScottsGT Pain Free Surgery Inc. ScottsGT PFS Inc. is a contractor with the local hospital or anesthesia group and provides an employee (wife) for CRNA duties. The hospital / anesthesia group pays ScottsGT PFS Inc $175000 a year for the company's services. She is paid $75,000 a year (or whatever the adviser suggests) by and as the sole employee of ScottsGT Pain Free Surgery Inc. A $100,000 dividend is paid yearly to the lone stock holder of ScottsGT PFS Inc, which happens to be your wife. ScottsGT PFS Inc pays out all net income as employee salaries, thus it does not post a corporate income, owning nothing on its corporate taxes. Your wife would owe up to the 25% bracket on the $75,000 in "salary," but would owe 15% on the $100,000.
My numbers may be off but you get the idea. ScottsGT PFS Inc can also own cars, pay insurance on her car for work purposes, pay for some gas, etc...of which ScottsGT PFS can deduct as business expenses.
This is way more complicated than I understand and I probably got a few parts wrong, so this is something a CPA or financial adviser needs to explain and this is why you pay them for their advice. It can be done and is commonly done with high income earners, something of which I am not yet. Hey if it works for GE not paying any taxes, then why can't it work for you!?
Being able to do this is a huge part of the "Bush tax cuts" Obama hates. It changed a lot of the definitions and rates in the taxpayer's favor.
Other things are like forming a corporation and get paid your income in terms of a dividend. Is your wife part of an anesthesia group or does she work directly for the hospital? I know a few people in the medical world who work for a corporation which pays them a very basic but still audit proof salary, and then they receive the majority of their yearly income via a dividend for owning the company they work for.
Example; your wife works for ScottsGT Pain Free Surgery Inc. ScottsGT PFS Inc. is a contractor with the local hospital or anesthesia group and provides an employee (wife) for CRNA duties. The hospital / anesthesia group pays ScottsGT PFS Inc $175000 a year for the company's services. She is paid $75,000 a year (or whatever the adviser suggests) by and as the sole employee of ScottsGT Pain Free Surgery Inc. A $100,000 dividend is paid yearly to the lone stock holder of ScottsGT PFS Inc, which happens to be your wife. ScottsGT PFS Inc pays out all net income as employee salaries, thus it does not post a corporate income, owning nothing on its corporate taxes. Your wife would owe up to the 25% bracket on the $75,000 in "salary," but would owe 15% on the $100,000.
My numbers may be off but you get the idea. ScottsGT PFS Inc can also own cars, pay insurance on her car for work purposes, pay for some gas, etc...of which ScottsGT PFS can deduct as business expenses.
This is way more complicated than I understand and I probably got a few parts wrong, so this is something a CPA or financial adviser needs to explain and this is why you pay them for their advice. It can be done and is commonly done with high income earners, something of which I am not yet. Hey if it works for GE not paying any taxes, then why can't it work for you!?
Being able to do this is a huge part of the "Bush tax cuts" Obama hates. It changed a lot of the definitions and rates in the taxpayer's favor.
2/28/2012 7:44:11 AM
Originally Posted By sparty:
Look into forming a corporation to own your cars and / or house. Your adviser will know a lot more about how to do this legally and properly.
Other things are like forming a corporation and get paid your income in terms of a dividend. Is your wife part of an anesthesia group or does she work directly for the hospital? I know a few people in the medical world who work for a corporation which pays them a very basic but still audit proof salary, and then they receive the majority of their yearly income via a dividend for owning the company they work for.
Example; your wife works for ScottsGT Pain Free Surgery Inc. ScottsGT PFS Inc. is a contractor with the local hospital or anesthesia group and provides an employee (wife) for CRNA duties. The hospital / anesthesia group pays ScottsGT PFS Inc $175000 a year for the company's services. She is paid $75,000 a year (or whatever the adviser suggests) by and as the sole employee of ScottsGT Pain Free Surgery Inc. A $100,000 dividend is paid yearly to the lone stock holder of ScottsGT PFS Inc, which happens to be your wife. ScottsGT PFS Inc pays out all net income as employee salaries, thus it does not post a corporate income, owning nothing on its corporate taxes. Your wife would owe up to the 25% bracket on the $75,000 in "salary," but would owe 15% on the $100,000.
My numbers may be off but you get the idea. ScottsGT PFS Inc can also own cars, pay insurance on her car for work purposes, pay for some gas, etc...of which ScottsGT PFS can deduct as business expenses.
This is way more complicated than I understand and I probably got a few parts wrong, so this is something a CPA or financial adviser needs to explain and this is why you pay them for their advice. It can be done and is commonly done with high income earners, something of which I am not yet. Hey if it works for GE not paying any taxes, then why can't it work for you!?
Being able to do this is a huge part of the "Bush tax cuts" Obama hates. It changed a lot of the definitions and rates in the taxpayer's favor.
Look into forming a corporation to own your cars and / or house. Your adviser will know a lot more about how to do this legally and properly.
Other things are like forming a corporation and get paid your income in terms of a dividend. Is your wife part of an anesthesia group or does she work directly for the hospital? I know a few people in the medical world who work for a corporation which pays them a very basic but still audit proof salary, and then they receive the majority of their yearly income via a dividend for owning the company they work for.
Example; your wife works for ScottsGT Pain Free Surgery Inc. ScottsGT PFS Inc. is a contractor with the local hospital or anesthesia group and provides an employee (wife) for CRNA duties. The hospital / anesthesia group pays ScottsGT PFS Inc $175000 a year for the company's services. She is paid $75,000 a year (or whatever the adviser suggests) by and as the sole employee of ScottsGT Pain Free Surgery Inc. A $100,000 dividend is paid yearly to the lone stock holder of ScottsGT PFS Inc, which happens to be your wife. ScottsGT PFS Inc pays out all net income as employee salaries, thus it does not post a corporate income, owning nothing on its corporate taxes. Your wife would owe up to the 25% bracket on the $75,000 in "salary," but would owe 15% on the $100,000.
My numbers may be off but you get the idea. ScottsGT PFS Inc can also own cars, pay insurance on her car for work purposes, pay for some gas, etc...of which ScottsGT PFS can deduct as business expenses.
This is way more complicated than I understand and I probably got a few parts wrong, so this is something a CPA or financial adviser needs to explain and this is why you pay them for their advice. It can be done and is commonly done with high income earners, something of which I am not yet. Hey if it works for GE not paying any taxes, then why can't it work for you!?
Being able to do this is a huge part of the "Bush tax cuts" Obama hates. It changed a lot of the definitions and rates in the taxpayer's favor.
This is what I'm looking for! Thanks, I'll format this and take it to our adviser!.
2/28/2012 11:38:21 AM
See, this is why we can't have nice things. Don't ask for advice on forums for this reason, you get INCORRECT INFORMATION! This is all wrong. I will explain.
Let us use this as a prime example of why you don't ask for technical advice on a forum. People don't know what they are talking about, but will give terrible advice like they do. The advice given above is not legal advice, and will cost you money in the long run. It will cost you money immediately if you are dumb enough to start a C corp and start putting assets in it, (especially appreciating assets) and start running your income through it will lead to double taxation. This is all terrible advice. Talk to a financial planner if you want to talk about growth, talk to a CPA if you want to talk about starting a legitimate business and what is deductible vs. what isn't.
Originally Posted By sparty:
Look into forming a corporation to own your cars and / or house. Your adviser will know a lot more about how to do this legally and properly. Putting your cars into a corp won't allow you to deduct them any easier than if you had a home office. There is a still a personal use exclusion that won't allow you to deduct the expenses for non business related activity. Your house is a TERRIBLE IDEA!!! Never put potentially appreciating property into a corporation. You won't be able to get that asset out without being taxed on the gain. Tax planning 101.
Other things are like forming a corporation and get paid your income in terms of a dividend. Is your wife part of an anesthesia group or does she work directly for the hospital? I know a few people in the medical world who work for a corporation which pays them a very basic but still audit proof salary, and then they receive the majority of their yearly income via a dividend for owning the company they work for. It sounds like you are talking C Corp, in which case you are completely wrong. For one, this is not a legitimate plan you have, and certainly not "audit proof" I will explain why in the example.
Example; your wife works for ScottsGT Pain Free Surgery Inc. ScottsGT PFS Inc. is a contractor with the local hospital or anesthesia group and provides an employee (wife) for CRNA duties. The hospital / anesthesia group pays ScottsGT PFS Inc $175000 a year for the company's services. She is paid $75,000 a year (or whatever the adviser suggests) by and as the sole employee of ScottsGT Pain Free Surgery Inc. A $100,000 dividend is paid yearly to the lone stock holder of ScottsGT PFS Inc, which happens to be your wife. ScottsGT PFS Inc pays out all net income as employee salaries, thus it does not post a corporate income, owning nothing on its corporate taxes. Your wife would owe up to the 25% bracket on the $75,000 in "salary," but would owe 15% on the $100,000. First, assuming you are talking about a C corp because you mentioned corporate income tax (which a S corp doesn't pay because it has passthrough treatment much like a partnership). The corp gets 175K income for her work and pays her 75K. She takes the other 100K as a dividend. Sounds great except for one thing. The dividend is NOT DEDUCTIBLE! You wouldn't wipe out the C corp income that way, it would still have taxable income of 100K. So she would pay tax on her ordinary income (75K) at a rate of say 28%, she would also pay another 15% on the dividend she received(100K) , and the Corp would pay tax on 100K of income. This is called double taxation. This is a reason why most smaller business' don't do C corps anymore. To avoid exact this scenario that you spelled out. Terrible idea.
My numbers may be off but you get the idea. ScottsGT PFS Inc can also own cars, pay insurance on her car for work purposes, pay for some gas, etc...of which ScottsGT PFS can deduct as business expenses. Wrong again. It can only deduct the % actually used for business. You can't pay all your home insurance, car insurance, kids insurance/gas, etc and deduct 100%. Do this and you will get a nice IRS adjustment come audit time. WITH Penalties and interest.
This is way more complicated than I understand and I probably got a few parts wrong, so this is something a CPA or financial adviser needs to explain and this is why you pay them for their advice. It can be done and is commonly done with high income earners, something of which I am not yet. Hey if it works for GE not paying any taxes, then why can't it work for you!? GE actually has LEGITIMATE business deductions that it writes off. The CEO isn't deducting his homeowners insurance through the company. Also, GE had over a billion dollar income tax expense last year...
Being able to do this is a huge part of the "Bush tax cuts" Obama hates. It changed a lot of the definitions and rates in the taxpayer's favor.
This has nothing to do with the Bush tax cuts. These are examples of people trying to cheat the system, getting creative, opening new loopholes, and running them into the ground before the IRS audits people, sets precedent, and closes the loopholes. This is not a legal thing GWB did. It is not currently, and never has been legal to deduct personal expenses as business expenses. No matter what type of entity you put it into, it is still a personal expense. People are just getting more creative at how they attempt to hide it. If it walks like a duck and quacks like a duck, guess what? These types of things have been going on long before Bush set foot into office and people will continue to try new things long after Obama is out of office. This is nothing new, not legal, and certainly not anything to give credit to GWB for.
Look into forming a corporation to own your cars and / or house. Your adviser will know a lot more about how to do this legally and properly. Putting your cars into a corp won't allow you to deduct them any easier than if you had a home office. There is a still a personal use exclusion that won't allow you to deduct the expenses for non business related activity. Your house is a TERRIBLE IDEA!!! Never put potentially appreciating property into a corporation. You won't be able to get that asset out without being taxed on the gain. Tax planning 101.
Other things are like forming a corporation and get paid your income in terms of a dividend. Is your wife part of an anesthesia group or does she work directly for the hospital? I know a few people in the medical world who work for a corporation which pays them a very basic but still audit proof salary, and then they receive the majority of their yearly income via a dividend for owning the company they work for. It sounds like you are talking C Corp, in which case you are completely wrong. For one, this is not a legitimate plan you have, and certainly not "audit proof" I will explain why in the example.
Example; your wife works for ScottsGT Pain Free Surgery Inc. ScottsGT PFS Inc. is a contractor with the local hospital or anesthesia group and provides an employee (wife) for CRNA duties. The hospital / anesthesia group pays ScottsGT PFS Inc $175000 a year for the company's services. She is paid $75,000 a year (or whatever the adviser suggests) by and as the sole employee of ScottsGT Pain Free Surgery Inc. A $100,000 dividend is paid yearly to the lone stock holder of ScottsGT PFS Inc, which happens to be your wife. ScottsGT PFS Inc pays out all net income as employee salaries, thus it does not post a corporate income, owning nothing on its corporate taxes. Your wife would owe up to the 25% bracket on the $75,000 in "salary," but would owe 15% on the $100,000. First, assuming you are talking about a C corp because you mentioned corporate income tax (which a S corp doesn't pay because it has passthrough treatment much like a partnership). The corp gets 175K income for her work and pays her 75K. She takes the other 100K as a dividend. Sounds great except for one thing. The dividend is NOT DEDUCTIBLE! You wouldn't wipe out the C corp income that way, it would still have taxable income of 100K. So she would pay tax on her ordinary income (75K) at a rate of say 28%, she would also pay another 15% on the dividend she received(100K) , and the Corp would pay tax on 100K of income. This is called double taxation. This is a reason why most smaller business' don't do C corps anymore. To avoid exact this scenario that you spelled out. Terrible idea.
My numbers may be off but you get the idea. ScottsGT PFS Inc can also own cars, pay insurance on her car for work purposes, pay for some gas, etc...of which ScottsGT PFS can deduct as business expenses. Wrong again. It can only deduct the % actually used for business. You can't pay all your home insurance, car insurance, kids insurance/gas, etc and deduct 100%. Do this and you will get a nice IRS adjustment come audit time. WITH Penalties and interest.
This is way more complicated than I understand and I probably got a few parts wrong, so this is something a CPA or financial adviser needs to explain and this is why you pay them for their advice. It can be done and is commonly done with high income earners, something of which I am not yet. Hey if it works for GE not paying any taxes, then why can't it work for you!? GE actually has LEGITIMATE business deductions that it writes off. The CEO isn't deducting his homeowners insurance through the company. Also, GE had over a billion dollar income tax expense last year...
Being able to do this is a huge part of the "Bush tax cuts" Obama hates. It changed a lot of the definitions and rates in the taxpayer's favor.
This has nothing to do with the Bush tax cuts. These are examples of people trying to cheat the system, getting creative, opening new loopholes, and running them into the ground before the IRS audits people, sets precedent, and closes the loopholes. This is not a legal thing GWB did. It is not currently, and never has been legal to deduct personal expenses as business expenses. No matter what type of entity you put it into, it is still a personal expense. People are just getting more creative at how they attempt to hide it. If it walks like a duck and quacks like a duck, guess what? These types of things have been going on long before Bush set foot into office and people will continue to try new things long after Obama is out of office. This is nothing new, not legal, and certainly not anything to give credit to GWB for.
Let us use this as a prime example of why you don't ask for technical advice on a forum. People don't know what they are talking about, but will give terrible advice like they do. The advice given above is not legal advice, and will cost you money in the long run. It will cost you money immediately if you are dumb enough to start a C corp and start putting assets in it, (especially appreciating assets) and start running your income through it will lead to double taxation. This is all terrible advice. Talk to a financial planner if you want to talk about growth, talk to a CPA if you want to talk about starting a legitimate business and what is deductible vs. what isn't.
2/28/2012 5:56:09 PM
Originally Posted By fallenromeo:
See, this is why we can't have nice things. Don't ask for advice on forums for this reason, you get INCORRECT INFORMATION! This is all wrong. I will explain.
[quote]Originally Posted By sparty:
snip
See, this is why we can't have nice things. Don't ask for advice on forums for this reason, you get INCORRECT INFORMATION! This is all wrong. I will explain.
[quote]Originally Posted By sparty:
snip
I never said that he should cheat the system by deducting personal expenses as business ones and lying to the IRS. Nor do I know what kind of corp or trust or what have you OP needs to form, that's why I stated you need a financial adviser / CPA / lawyer to set all this up for you. Its a hypothetical, relax. I would hope the OP wouldn't try to do this without having an expert set it up for him.
I don't pretend to be a tax expert or know the details, but I do know plenty of people with incomes >250,000 who have their lives set up this way and they do receive substantial tax savings by doing so, while staying completely legal. I was just explaining it as I had been explained it.
As for the GWB tax issue, I was under the assumption that this changed a lot of how dividends are treated for different entities, with different taxation rates.
Obviously you're the expert.
OP, seek advice from your adviser.
2/28/2012 6:14:36 PM
Originally Posted By sparty:
I never said that he should cheat the system by deducting personal expenses as business ones and lying to the IRS. Nor do I know what kind of corp or trust or what have you OP needs to form, that's why I stated you need a financial adviser / CPA / lawyer to set all this up for you. Its a hypothetical, relax. I would hope the OP wouldn't try to do this without having an expert set it up for him.
I don't pretend to be a tax expert or know the details, but I do know plenty of people with incomes >250,000 who have their lives set up this way and they do receive substantial tax savings by doing so, while staying completely legal. I was just explaining it as I had been explained it.
As for the GWB tax issue, I was under the assumption that this changed a lot of how dividends are treated for different entities, with different taxation rates.
Obviously you're the expert.
OP, seek advice from your adviser.
I never said that he should cheat the system by deducting personal expenses as business ones and lying to the IRS. Nor do I know what kind of corp or trust or what have you OP needs to form, that's why I stated you need a financial adviser / CPA / lawyer to set all this up for you. Its a hypothetical, relax. I would hope the OP wouldn't try to do this without having an expert set it up for him.
I don't pretend to be a tax expert or know the details, but I do know plenty of people with incomes >250,000 who have their lives set up this way and they do receive substantial tax savings by doing so, while staying completely legal. I was just explaining it as I had been explained it.
As for the GWB tax issue, I was under the assumption that this changed a lot of how dividends are treated for different entities, with different taxation rates.
Obviously you're the expert.
OP, seek advice from your adviser.
It doesn't matter what type of entity it is set up under, or how much money you make. Putting personal assets in any type of entity and attempting to deduct them as business expenses is not legal. It doesn't matter if it is a corp or a trust, doesn't matter if they make <5,000 or >500,000. If they are doing what you suggested, it is not legal. Deducting personal expenses is not allowed according to IRC.
Thank you for acknowledging my expertise.
2/29/2012 9:02:15 AM
Sparty,
your scenario, or any that tries to disguise personal expenses as business expenses only works in your head if you truly believe "it's only illegal if you get caught"
your scenario, or any that tries to disguise personal expenses as business expenses only works in your head if you truly believe "it's only illegal if you get caught"
2/29/2012 10:52:30 AM
Thanks everyone! As mentioned in my first post, just looking for ideas to take to an adviser. Not looking for answers to run with here!
3/5/2012 11:51:46 PM
buy land and start a christmas tree farm.
4/5/2012 8:27:07 AM
Let's shortcut this entire discussion: Starting a business for the purpose of reducing taxes could be considered by the IRS as not a business at all. If you were under audit and told the agent you started a business simply as a tax loophole, the Service could find that your venture had no real business purpose. So be careful about how you tread in this area.
4/8/2012 7:08:04 PM
Rental property?
