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Joined 1 year ago
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Cake day: December 21st, 2023

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  • Yes write off rules get complicated fast. People generally agree with the very simple example I’ve given but all you have to do is ask “What if you bought a drill while building the fence?” and you’re gonna trigger a whole host of opinions.

    But I think sometimes people only see the complicated examples and think “write offs are a scam got it” so I think it’s important to provide an example where most people would generally agree it’s not. It helps people realize there’s some nuance to the discussion.

    That being said: Tax the fucking rich already.


  • I’m seeing a lot of complicated explanations so I’m gonna go with a simpler one.

    Say you build a fence for somebody and they pay you $1000. You have to report that income to the IRS. Let’s say the tax rate is 40% so they say “Well you owe us $400.” But instead you provide them with receipts saying you bought $500 of supplies in the form of lumber, screws and such. You have “written off” your expenses and shown the IRS you really only made $500 so you only owe $200 in taxes.