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0 pointspjc509mo ago0 comments

Most businesses let you deduct inputs and capital expenses from your revenue so that tax only applies to profit.

Since this is done on annual buckets it's very common to try to move items in both columns between years to minimize tax.

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layer89mo ago

So if company A pays company B to develop some software, that revenue for company B (or rather, its profit) is still taxable? Then it makes sense I guess.

monkeyelite9mo ago

The revenue minus expenses is taxable, yes. And if the business itself makes no money, that means all of it was taxed through payroll.

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