Quote:
Originally Posted by The_Dunedan
However, just as you're taxed on your income (and the IRS cares not one whit how much of that income goes for rent/food/bills/etc), so are these companies.
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I only know a few small business owners and they only paid taxes on income after deductions and business expenses. One Contract Engineer I worked with would write off all living expense while he was away from home (rent, car, meals, etc..) and he was away from home most of the time. As I recall he had to jump through some hoops to maintain a home address for tax purposes such as voting record etc.. The bottom line is he was only liable for income after deductions.