Can someone explain to me...? :-)

[WillJ8787]

Can someone explain what kind of business has losses exceeding profits, pays no taxes or very little taxes over a ten year period...

...and still is in business all these years even til today?

Can someone help me with the math, I'm a little confused?

 

[Lazaran]

.
The kind that launders organized crime money. Specifically Russian organized crime money.

Hope that helps.

 

[kissedcherry]

This is new to you?

Many businesses have enough legal tax write-offs to reduce taxable income to zero.

If you have ever been self-employed you would know that but if you are a gear in someone else machine then maybe not.

The USA government itself pays no taxes and spends beyond it's income and has been in business for over 200 years.

 

[sircumvent]

Can someone explain what kind of business has losses exceeding profits, pays no taxes or very little taxes over a ten year period...

...and still is in business all these years even til today?

Can someone help me with the math, I'm a little confused?

Are you talking about the USPS?

 

[Rightguide]

Can someone explain what kind of business has losses exceeding profits, pays no taxes or very little taxes over a ten year period...

...and still is in business all these years even til today?

Can someone help me with the math, I'm a little confused?

Yes we know. You have a basic misunderstanding about how businesses operate, their accounting systems, and the IRS Code.

 

[Lazaran]

.
Trump's faithful white skirts are providing cover for him to hide behind again.

So loyal. Like a pet dog.

SAD!!!

 

[KeithD]

It's fun that when the Trumpettes say that Trump is just clever at manipulating his taxes (which he isn't. If he were, his shenanigans wouldn't be exposed as they are) they ignore that the tax relief is based on being a piss poor businessman whose finances are riddled with gigantic business failure.

 

[Comshaw]

Many businesses have enough legal tax write-offs to reduce taxable income to zero.

If you have ever been self-employed you would know that but if you are a gear in someone else machine then maybe not.

The USA government itself pays no taxes and spends beyond it's income and has been in business for over 200 years.

No shit! And the scream from conservatives is "We're taxing the rich to much! They can't produce jobs if we tax them out of business. Meanwhile the fuckers are sneaking in under the table and pay little of nothing. I pointed it out in another post, if the base tax rate for the rich is say 70%, but they can use all the loop holds, dodges and underhanded number shuffling supplied by congress and end up paying nothing or next to it, that 70% tax is a myth. It's flim flam to assure the working people THINK those at the top are paying their share.

As far as taking a business loss, showing you lost more then you earned, the last time I did that, before I became a "gear in the machine" and earned a pay check, you could only do it for five years. Maybe congress passed a special Trump addendum to let him do it for twice as long. Or maybe he's just a fucking tax cheat.


Comshaw

 

[KeithD]

Are you talking about the USPS?

My goodness, how did your last avatar get taken down? You know, the one where you dishonestly misrepresented a photo of a grandfather consoling his granddaughter at the funeral of her father for something that's against the rules to be discussed/depicted on Literotica. Did you take that down having been caught being an asshole, or did Literotica take it down?

 

[fgarvb1]

Can someone explain what kind of business has losses exceeding profits, pays no taxes or very little taxes over a ten year period...

...and still is in business all these years even til today?

Can someone help me with the math, I'm a little confused?

Well it's called Tax law. dealing with real estate.

 

[Comshaw]

Are you talking about the USPS?

Do you really think the USPS a SERVICE enshrined in the constitution, was ever designed or considered to be a self-supporting, revenue-generating business? It's a government SERVICE FFS. Should we also require the military to go into the asset seizure business?

Yep just what we need, a return to government-sanctioned privateers, piracy on a huge scale.

Or maybe we should demand that the EPA support itself with fines.

Or the Coast Guard can sell the drugs they confiscate to support their operation.

Yea, I think maybe the USPS should remain a government service, and not be turned into some faux for-profit business.

Comshaw

 

[YDB95]

Do you really think the USPS a SERVICE enshrined in the constitution, was ever designed or considered to be a self-supporting, revenue-generating business?

Go easy. Republicans think EVERYTHING should be a revenue-generating business.

 

[KeithD]

Go easy. Republicans think EVERYTHING should be a revenue-generating business.

Except for their choice as president, apparently.

 

[WillJ8787]

Yes we know. You have a basic misunderstanding about how businesses operate, their accounting systems, and the IRS Code.

As a small business owner and someone who does my own business taxes every year...

I always thought the idea was to make money...that is the basic marker of success for any business in a Capitalist system.

Ya know....more comes in(Revenue) than goes out(Expense).

Are you saying I'm wrong about this?

The IRS audits business who routinely show losses year after year...they ask the same question as I'm asking about the math?

Where did you get the money to stay in business if you keep showing losses?

 

[Ziggins]

Coastal flooding can dampen the spirits of real estate investors. Trump may be too old to care, but his heirs are probably thinking about higher ground.

 

[Rightguide]

Where did you get the money to stay in business if you keep showing losses?

You liquidate assets, cut overhead, and prices, for as long as is tolerable and then barring any other financial help, you go out of business.

 

[RobDownSouth]

Can someone explain what kind of business has losses exceeding profits, pays no taxes or very little taxes over a ten year period...

...and still is in business all these years even til today?

Can someone help me with the math, I'm a little confused?

It's called a "tax loss carry forward". Trump has had two yuuuuge ones in his career.

 

[Rightguide]

It's called a "tax loss carry forward". Trump has had two yuuuuge ones in his career.

Both legal.

 

[SlutAddicted]

A lot of expense deductions are not cash expenses. Especially in capital intensive business like real estate where the value of the fixed asset is written off over many years.

So say a business had $1 billion of fixed assets (buildings), $100 million of revenue, $80 million of cash expenses. It generates $20 million (100-80) of positive cashflow every year. But it is also allowed to write off the asset over say 40 years so it has a depreciation expense of $25 million. Therefore it has earnings of -$5MM (100-80-25).

Also even if it did have positive earnings, it can offset losses from previous years against those earnings.

 

[WillJ8787]

You liquidate assets, cut overhead, and prices, for as long as is tolerable and then barring any other financial help, you go out of business.

Right, Rob and Slut...I agree. I'm not asking anything I don't know already... it's​ good to have others explain what you have pointed out.

These business tactics are not automatically legal...it depends on the details, the disclosures from the business person/entity. One actually has to follow some rules and laws for some of this stuff to be legal.

So, let's wait and see what the details are for his business and usually when folks hide stuff it is a good indicator they have something to hide.

There is also collaterizing assets for additional loans to pay for on-going business. Again, disclosure and rules/laws apply...

We already know US banks would not touch him or his business entities...that is another flag for financial folks. His financials had to be a mess for US companies to take a pass.

When I say mess...it can be different things...a mess from not showing any profit for year on end(the legal kind of business failures) and it could be a mess because the numbers and disclosures don't add up or make sense.( The illegal kind of business activity)

I guess you all already know what I would place my bets on. I think we will all know soon enough.

 

[KeithD]

Trump's take on foreign loans is not that they are loans. To him, they are "getawayable" payoffs for services rendered, not to be repaid in money, ergo being an espionage asset of the Russians and a cheerleader for Saudi Arabian murder. The question is whether he's going to continue to get away with it.

 

[fgarvb1]

As a small business owner and someone who does my own business taxes every year...

I always thought the idea was to make money...that is the basic marker of success for any business in a Capitalist system.

Ya know....more comes in(Revenue) than goes out(Expense).

Are you saying I'm wrong about this?

The IRS audits business who routinely show losses year after year...they ask the same question as I'm asking about the math?

Where did you get the money to stay in business if you keep showing losses?

Oh.

You think Trump doesn't get audits?

What kind of business are you in?

 

[Fuzzy1975]

As a small business owner and someone who does my own business taxes every year...

I always thought the idea was to make money...that is the basic marker of success for any business in a Capitalist system.

Ya know....more comes in(Revenue) than goes out(Expense).

Are you saying I'm wrong about this?

The IRS audits business who routinely show losses year after year...they ask the same question as I'm asking about the math?

Where did you get the money to stay in business if you keep showing losses?

One question that arises is if the IRS actually ever did a forensic audit. Given the size of the Trump organisation, it is highly unlikely. I would estimate that might run into several millions of dollars, and take up a lot of time and resource. This is one huge advantage that multi billion dollar companies can wield over an entity like the IRS.

Instead I assume the IRS spot tested certain area's of claim, and finding no real evidence at evasion they moved on.

Looking at Trump's recapitalisation, I can see how he would pass the smell test. After all the IRS is not there to point out to anyone that they are running a failing business model.

 

[Fuzzy1975]

Oh.

You think Trump doesn't get audits?

What kind of business are you in?

If you have ever had an audit as a corporation, you would understand that audits are not to be feared. An annual audit is part of the price of business.

The corporation has the books, accountants, lawyers and internal Tax structure , which is designed explicitly for being audited complete with itemised code rulings for deductions etc.

Unlike when the IRS audits an individual filer. Who has his employment records, and deductions and little knowledge of the Tax codes.

 

[Lazaran]

One question that arises is if the IRS actually ever did a forensic audit. Given the size of the Trump organisation, it is highly unlikely. I would estimate that might run into several millions of dollars, and take up a lot of time and resource. This is one huge advantage that multi billion dollar companies can wield over an entity like the IRS.

Instead I assume the IRS spot tested certain area's of claim, and finding no real evidence at evasion they moved on.

Looking at Trump's recapitalisation, I can see how he would pass the smell test. After all the IRS is not there to point out to anyone that they are running a failing business model.

There should be some way to identify red flags that suggest money laundering. One would think the IRS AND the FBI would be interested in this.