Microsoft Must be held accountable.

[Henry Spencer]

On Sun, 12 Oct 2003, Anton Markov wrote:
> More importantly, a corporation pays taxes on its (or your) net profits 
> rather than gross cash flow as does an individual...

This is true of any business, not just corporations.  It is not necessary
to incorporate to deduct business expenses against business income (and
even, indirectly, against employment income*).  Small businesses often
are not incorporated.

(* You can deduct business losses -- roughly speaking, the excess of
business expenses over business income -- against other income, e.g. from
employment, *provided* the Feds believe that your business is legitimate
and is truly intended to earn a profit.  This is an area which has seen
many abuses, so any business which makes losses, year after year, that
are then deducted against employment income, had better have a really
convincing story behind it if the Feds ask, which they will.  Otherwise
they will decide that it's a hobby, meaning that its revenue is not
income, its expenses are not deductible, and you're in trouble.)

                                                          Henry Spencer
                                                       henry-lqW1N6Cllo0sV2N9l4h3zg at public.gmane.org

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