Most businesses let you deduct inputs and capital expenses from your revenue so ... | Hacker News

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		pjc50 7 months ago \| parent \| context \| favorite \| on: The time bomb in the tax code that's fueling mass ... Most businesses let you deduct inputs and capital expenses from your revenue so that tax only applies to profit. Since this is done on annual buckets it's very common to try to move items in both columns between years to minimize tax.

layer8 7 months ago [–]

So if company A pays company B to develop some software, that revenue for company B (or rather, its profit) is still taxable? Then it makes sense I guess.

monkeyelite 7 months ago | [–]

The revenue minus expenses is taxable, yes. And if the business itself makes no money, that means all of it was taxed through payroll.

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