Uber has never once turned a profit, and is allowed to continue running their business. If you’re a small business owner running an ebay or ecom business, and you claim losses for 3 out of 5 years in a row, it’s likely that the IRS will audit you, and could deem you a hobby. Amazon is often cited as not generating a profit for many years, but is now profitable. For them, it was somehow okay to run a business making no profit! So like, how come small businesses can’t claim losses, but big corps can?

  • snooggums@midwest.socialEnglish
    11·
    3 months ago

    Properly reporting expenses can allow new or growing businesses to reinvest in themselves.

    Why is that a thing for businesses and not regular people? Why is it important for someone to pay 10% on a knife purchase, but a business doesn’t need to pay the same thing when both situations end up with owning a knife?

    • FireTower@lemmy.world
      2·
      3 months ago

      The Federal government doesn’t have a sales tax on consumer purchases goods that they charge regular people (-a few very specific things). Most sales taxes are done by states, some states have none.

      And the business isn’t dodging paying sales tax w/ deductions because again most things they spend money on aren’t being taxed on purchase. They’re having their amount of income the government can tax reduced as a reward for investing in themselves to promote economic growth.

      Also private citizens have tax credits (which are preferable to deductions) too if they purchase certain things like EVs. If you buy a new EV the government will give you a few grand.