eli5: Why can’t businesses right off all business activities on their taxes?

345 views

If their costs are greater than the tax they pay, how come business can’t effectively pay 0 tax by righting off all these costs as a business expense?

In: 0

7 Answers

Anonymous 0 Comments

Theoretically speaking, taxes are paid on profits. So yes they can and do writeoff all their expenses but if they are profitable they always have to pay taxes.

You are viewing 1 out of 7 answers, click here to view all answers.