Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: 10K a day who wrote (229644)	4/17/2005 11:08:07 PM
From: i-node	Read Replies (2) \| Respond to of 1573029

>>>>>>>>I'm thinking about incorporating my dog. She doesn't eat very much and she has a really small mouth. She grunts a lot. but i guess the important thing is i could write off my carpet cleaning and dry cleaning expenses. my dog is a legitimate business you know. she helps keep me sane and talks to me when nobody else will talk to me. She is vital to my success through the independent contractor agreement that we have. force majure and all that good stuff. anyway. she legitimately makes a profit with the 15,000 start up costs and investment windfall from buying all those houses and flipping them. when she barks three times it's time to sell. anyway. i just thought u'd like to know being an accountant and all. Nice, but you realize that to be considered ordinary and necessary (and thus deductible), business expenses must be incurred in connection with a profit motive. Unless you can show any actual profit motive in this endeavor, all of your expenses are apt to be disallowed on audit, and the burden will be on you to show that the corporation DOES have a profit motive and reasonable expectation of making money. You can't just deduct costs because you CLAIM them to be business expenses (I can recall a time when CPAs were inundated with clients who believed that putting a magnetic sign promoting their business on the side of their car made the costs of operating the car a qualified business expense; apparently, this was a rumor that circulated in the late 80s after TRA86).