Current Events > wait so if a company losses money, they don't have to pay taxes

(+) Yeah! (+)

But if I go into debt I still have to pay taxes?!?

I don't think the system works

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Oh it works, just not for you

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If you go into debt and all the money you spent can be counted as an expense, and if you itemize expenses... no, you dont have to pay taxes.

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Capitalism. This is what you voted for.

If you do it wrong, yes

If you do it right, probably not, no

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they must be using different credit cards than you

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It's all about deductible expenses. There are business-only deductibles, personal-only deductibles, and some deductibles that can be claimed by both groups.

The key is knowing what expenses you, as an individual, can claim on your taxes (such as child credits, education credits, debt/interest credits, home ownership credits, marriage credits, charitable giving/philanthropy credits) and if you do it right, you can minimize your tax implications for the year.

The thing is most businesses know what expenses to deduct from their tax liability and most individuals don't. Businesses also tend to use accountants and tax preparers that know how to maximize your deductibles. Your local H&R Block rep generally isn't very good at maximizing your returns outside of simple tax dealings like overpayments of your income tax. My wife and I both realized that when the rep had no idea that my wife qualified for an aerospace tax credit because she worked for an aerospace company in a state that provided that credit.

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K-pop albums are not tax deductible

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