Comment on Why do big corporations get to claim losses, but small businesses can't?
deafboy@lemmy.world 3 months ago3d printer is subtracted from revenue for tax purposes
That makes sense. Since my profits always oscillated around zero, claiming any expenses had no practical effect.
legitimately running a business, or just trying to save money on their hobby
That’s actually how it started. We’ve installed linux on some old desktop machine with my classmate back in school, set up some services like webhosting, mail, jabber, and started to give access to people for free. No guarantees, no pressure. As we finished school, trying to turn it into a business was a logical next step. It never went big, but we just kept the thing around, bought newer hardware, moved it to a proper housing, did basic maintenance, and years later, here I am owing to the government thanks to my highschool hobby.
Talk to an accountant if you haven’t it sounds to me like you may be able to claim some deductions.
If for every $100 gross income you make you pay $20 in taxes and $80 in expenses you may be able to claim some of your expenses to reduce your tax burden.
WeirdGoesPro@lemmy.dbzer0.com 3 months ago
I’m not sure I understand why turning it into a business was the next step unless it was 1999. That market was saturated almost immediately. The web hosting may have had some potential, I guess.
It sounds more like you fell into exactly the situation that these laws are designed for—you had a big hobby, thought made it a business, didn’t have a plan to make real money with it, and inadvertently may have committed some light tax evasion if you claimed anything as an expense. Hence, audited.
An audit isn’t an accusation of guilt, it’s an investigation into unusual or unorganized practices, which is exactly what you described doing.
deafboy@lemmy.world 3 months ago
Yes. Screw the small businesses. All that competition is just fraud and burden to the real corporations :D /s