Business Start Up & Write Offs

Following up on an earlier post, here is an article that might help people understand that the tax laws are written to encourage business start up.

Doug Stives, a CPA from Red Bank, N.J., went skiing in Utah.

"I always dreamed of coming here for peak conditions," he said in mid-March between runs at Snowbasin Resort.

The trip is among the many perks that have accrued from his decision, in 2006, to become, in effect, The Most Tax-Efficient Man in America. The experiment has led to a new career, frequent travel and obsessive documentation of expenses, such as a $6 hot dog he recently bought in the Philadelphia airport.

Mr. Stives says he is careful to observe IRS rules. He has a contract for each speaking gig, and keeps one for his wife's arrangement, too. He uses one credit card for business expenses, making sure it provides a year-end summary by category.

You see, Google has massive business expense, your business small expenses.  Whereas Google expenses relate to electricity payments and payroll, your small business has expenses such as your travel, meals, books, research, museum visits, etc.  You personally spend the time and money doing what you love, therefore you need less money as a paycheck.

Here is Sen. Reid explaining that payment of Federal taxes is voluntary, and most for employees.  

Ignore the obtuse interrogator and just focus on what Sen. Reid says.


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