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On 8/6/2004 1:15:44 AM Icicles wrote:
Fire&Ice-- I have a genuine question for you since I do not own a business. For one of my high school friends, their parents were able to claim Mercedes for all 3 of their under-age kids as expenses. These kids never even worked at the store, so to me, it appears to be completely personal. They also claim numerous things that they use in their house as business expenses. I understand this is all legitimate as well?
Again, this is not meant to offend you in any way. I am starting to think that i just know bad people.----------------
To vague of a situation to even begin to judge. How are they set up - sole proprietor? S corp? Corp? Who said they claimed the cars & if true, how was it listed. Yes, there are many legitimate ways to claim some things like this. Are they officers of the company? Are the cars part of a "fleet". There exists so many variables & you aren't privy to what they actually filed. Many people boast such things when in reality it's not true. Not cool anyway unless it is the rantings of a teen ager. They could be legitimate expenses. They may be pushing the envelope. If they are, people get caught eventually.
And, yes, seemingly simple household items can be deducted -for example, my calanders & daily planers. My iron - I soley bought it to iron some vintage linens. Doesn't mean I don't use it for my clothes (not that I iron alot - hence why I didn't have one to begin with)- Shelves to store items. Sissors, knives, my digital camera, computer - all deductible. All used in my business. If I can make claim that I utilize these things in my business on a regular basis (or special use), I can claim them as deductions. All things purchased with the intent of generating income (i.e. digitals to send pics of items to clients). Doesn't mean I don't use it for personal use. Who would buy a digital camera for business and another one for personal use? And, if I go preview an auction, I can deduct my mileage even if I included a ride to the grocery store en route. Even with all the deductions, plenty of taxes are paid.
Remember, our government encourages ownership. Small business have a vital role in our overall economy.
It's not that cut and dry from the outside looking in. Yes, some people do push the envelope. But, it's certainly not regulated to the rich. Middle America is doing the same thing - just maybe on a lesser scale.
And, most of the loopholes that existed in the past have been closed w/ the advent of material participation (active & passive distinction).