If a business only ever has expenses and no revenue, they'll figure out what you're up to. If the process can't withstand an audit, you'll probably pay much more in fines and late fees. Sucks. The human farming that is government is still alive and well in the world. Maybe some day we'll move to more voluntary solutions which benefit everyone.
Of course. Hence the need to be diligent and structure well - and keeping revenue (crypto cashouts) and expenses pretty close to on par.
And yeah, hopefully better solutions on the way. Or, they might already be there with trusts and private foundation arrangements, just need to figure out...
That would be amazing. If we HAVE to pay stupid taxes, at least we could choose where it's going - or more importantly where it's not going!
Other problem with making your expenses and profits equal out - if you ever do need to borrow money to get a mortgage or loan - you won't qualify with 0 income.
I love this post though. In the US self employed people are taxed to death (thanks Reagan, you dead douchebag!) at 15% PLUS state and federal tax - like you pointed out - when it's all said and done, it's anywhere from 30% and if you're making good money 45% isn't unheard of. Oh right, then we have Obamacare which is another tax (giant myth its healthcare - it's health insurance you pay $300+ for a month and can't use cause deductibles are $5k+.Talk about theft!)
You got me all fired up with this post. I HATE TAXES!