[9785] in Commercialization & Privatization of the Internet
Re: More on Telco
daemon@ATHENA.MIT.EDU (Stephen Williams)
Fri Jan 21 10:25:11 1994
From: sdw@meaddata.com (Stephen Williams)
To: PGSMITH@ucsvax.ucs.umass.edu (Pres Smith)
Date: Fri, 21 Jan 1994 08:52:53 -0500 (EST)
Cc: com-priv@psi.com
In-Reply-To: <01H7WWGL6VGI8Y8KMP@phobos.ucs.umass.edu> from "Pres Smith" at Jan 20, 94 05:26:45 pm
...
> > Net access
> >is a business expense for me.
>
> Ah, you're one of those people who deduct their business expenses
> from their net income and accept a government handout from the
> general tax payers who lack such a shelter? Such subsidies to
Any taxpayer can take advantage of it, and it's not viewed as a
handout, but a legal way to limit the drain on income.
> business probably perform a worthwhile social purpose, as many other
> subsidies do. Is it a regressive burden on the poor? Possibly,
> but perhaps it provides more jobs than would otherwise exist. So
> like other social goals, it probably makes sense, and I think you're
> quite welcome to it.
Tax lesson:
Anyone can deduct things like Internet access as a business expense.
All you have to do is start a business. In my state, there is nothing
to file, unless you are using a false name (DBA (Doing Business As)
registry) or have taxable sales (vendor's license, $25 in OH).
If you are a consultancy under your name, you just file a Schedule C
with your tax return with income and expenses.
You're supposed to make a profit 2 out of 5 years according to IRS
rules, or they may try to tell you it's just a hobby. If you make ANY
profit, you're in good shape. You can also argue with a hobby
declaration.
It has been stated by many people (including a tax judge I believe)
that it is a taxpayer's duty and right to take advantage of all
deductions available to him.
Also, a good point to remember is that not reporting income is big
trouble (Al Capone, Pete Rose), but believing you can deduct things
that the IRS disagrees with is not a crime at all. (Although there
may be some limit that becomes fraud/evasion.) Almost anything is
deductable in the right situation. They have to notice it and you can
then argue about it. If you don't like their decision, you can take
them to tax court. (Who knows how much that costs, but people do it
every year.)
I've learned all this running small businesses.
Believe me, there are still lots of stuff that you can't deduct...
...
> Prescott Smith pgsmith@educ.umass.edu
>
sdw
--
Stephen D. Williams Local Internet Gateway Co.; SDW Systems 513 496-5223APager
LIG dev./sales Internet: sdw@lig.net sdw@meaddata.com
OO R&D Source Dist. By Horse: 2464 Rosina Dr., Miamisburg, OH 45342-6430
GNU Support ICBM: 39 34N 85 15W I love it when a plan comes together
