How does tax evasion work?
In: Economics
I’ll only speak from experience. You get a tax liability when your employer doesn’t withhold or if you receive/file a self-employed 1040-misc tax return which assesses how much you owe based on how much you earned. If you “earned” $30,000 in 2019, your liability will probably be a lot, like $3,000 to $8,000 maybe. But if you make $30,0000 and claim a $30,000 loss, then in effect, you’ve “earned” $0 in 2019. (The secret is to reinvest into the business, misreport expenses, take advantage of tax incentives, etc). You can lease expensive cars every year, count meals, rounds of golf, pretty much anything is a loophole if you think long and hard enough. Giggity.
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