>open a small or even non-existent "business" >make

Because the IRS doesn't think this kind of shit is cute and they will bend you over if they catch it

>>1804478
But it's in the IRS's own tax law. In fact it's exactly what you're instructed to do for any services you perform.

Are you saying I'll be prosecuted unless I pay more taxes than the tax code tells me to? That doesn't seem constitutional.

>>1804573
Anyone?

>>1804573

The IRS code doesn't say you can launder money by setting up a fake business

>>1804457
If your business doesn't turn a profit for a few years, they'll take notice and audit you. After 8 years of losing money, it's a hobby not a business.

>>1804775
>launder money
Ok a real business then. But one in which every time I do something for someone, I secretly charge market price in my head without telling him/her and take everything said people do for me as implied barter in exchange.

If I were a legal escort but all my clients took me out to dinner first, dinner could be tax deductible.

>>1804790
>After 8 years of losing money, it's not a business
Says who?

I'm not breaking any laws if they audit me though.

>>1804790
>if you keep doing this, you're gonna get caught! meme
Ok genius then I'll do it for 2 years but not the third, wait a few years and do it again, and still save a huge amount. Simple as that.

>>1804457

What is an audit?

OP you are considering a lot of work and upkeep for something that isn't feasible in the long term (avoiding taxes). Companies (or fake companies) are the first thing the IRS looks for when auditing. If your company has only losses and is a new company you become high risk for an audit.

You are better off using known truthful deduction methods rather than illegal ones since the net gain is a fraction of what getting caught would cost.

>>1804457
Do you think this is better than spending the same amount intentionally losing in stock positions so you can write off the loss for X years?

My favorite /biz/ threads are the ones where somebody suggests committing blatant fraud and then asks why nobody else thought of it.

>>1804801
Lol keep telling yourself that all the way until they lock you in a cell at Sing Sing

>>1804478

/thread

>>1804457
The IRS requires any business to make money at least 3 out of any 5 years.

it's the law. If you don't make a profit 3/5 times they come back and charge you tax and interest and penalties on what you deducted.

>>1804801
>Says who?

Literally the IRS, in multiple places no less. It's not even 8 years that sets the bar, much shorter time frame.

Your "business" would be declared a non-deductible hobby fairly quickly. You're probably right that you can make an argument for a single tax year though, but it's not a sliding window. If you "restart" the business, previous pure losses count against it being a business vs a hobby.