Question by jojo: has anyone started a small business to avoid taxes on other income?
just wondering if anyone has started a small business just to get the deductions. i was hit hard by the tax man last year and i would consider myself lower-middle class! i was thinking of starting AVON or something so that i could have some deductions for next year. thanks
Answer by v b
Your goal is what again?
You want to start a small business to get tax deductions? You do realize, of course, that the small business must make money or the IRS will reclassify it as a hobby and then limit the deductions to the income it brings in….
What do you think? Answer below!