I really enjoy Luke and Dan saying dumb shit just to screw with Linus.

@freedomgoddess

4 ай бұрын

dunno man, i don't think there's anything dumb about what they said ;)

@adwaawddw4730

4 ай бұрын

They continue to call things tax write offs for the rest of the show

@Santiago160

4 ай бұрын

We all do 😂😂

@The_Slavstralian

4 ай бұрын

It triggers Linus a little coz it takes a moment for Linus to realize the guys are messing with him.

@Orkbrewer

4 ай бұрын

Made me keep watching.

The "dying inside" stare on Linus face every time they interrupted with the stupid ideas, priceless.

Luke: These mic stands are tax write offs. Basically free... Linus: Can you relax for a moment here *Starts Shaking Violently*

@notbadsince97

8 күн бұрын

Especially since if they get something for “free” they still have to report it as income

I don't have any LTT merch yet, but I would 100% buy a "This ____ is a tax write off" shirt/hat/hoodie/etc

@kaushalsuvarna5156

4 ай бұрын

But would it be?

@LucasMp

4 ай бұрын

This is, unironically, a great idea. "This shirt is a tax write off", "This backpack is a tax write off", etc.

@dufric88

4 ай бұрын

@@kaushalsuvarna5156 no, but the taxes could be a shirt write off

@ac.creations

4 ай бұрын

Well well well looks like you can

@lostphantom4718

4 ай бұрын

I 100% agree!

So you're saying it's _not_ owned by Linus Pool Parties, a subsidiary of Linus Pool Group Inc. who then in turn rents it to Linus Family Group? 😂

@matthewcohen3521

4 ай бұрын

Linus Family Group. 😆😆

Just don't pay them. Problem solved.

@Anarcho-harambeism

4 ай бұрын

If enough people stopped.....

@552jacki3

4 ай бұрын

I don't care who the IRS sends I'm not paying my taxes.

@codemonkeys3914

4 ай бұрын

@@552jacki3 What if they send Andre Rush?

@Anarcho-harambeism

4 ай бұрын

​@@552jacki3IRS? Never heard of her

@zaarkeru3391

4 ай бұрын

Live outside of society then, easy peasy.

People thinking they found the infinite money glitch is how you get 2008

@kaushalsuvarna5156

4 ай бұрын

Underrated

@BichaelStevens

4 ай бұрын

Id blame blackrock and vanguard more. No wait, that's antisemitic, my bad!

@Coliflower185

4 ай бұрын

@@BichaelStevensas much as PMCs are shit, they weren’t responsible for 2008

@BichaelStevens

4 ай бұрын

@@Coliflower185 Kneeqa they're investment and real estate companies...

@longiusaescius2537

4 ай бұрын

I didn't know people are named BlackRock and the Federal Government

Just visibly seeing Linus' blood pressure steadily rising over the course of half an hour because of Dan and Luke is always good entertainment xD

Part of the misconception is there's a not insignificant amount of small businesses in the US committing tax evasion.

@Professional_Idiot863

4 ай бұрын

And large businesses, and medium businesses too

@greatcaledonianpenicillin5378

4 ай бұрын

And very large businessess

@internetmovieguy

4 ай бұрын

@isaacbelloso7921 and not just large businesses but the Medium and Small Businesses too!

@crusaderanimation6967

4 ай бұрын

"In business we call that tax OPTIMIZATION"

@sleepycat2474

4 ай бұрын

Not saying larger businesses don't do this as well. But small businesses tend to be where people try to "write off" everything, including clearly personal expenses.

Your house is an independent studio. Write it off.

@Zack_Wester

4 ай бұрын

he probebly can on some. what I think is that there two tax write off. full and limited. Like if I own a privet car and I use it in/at/on/for work a lot I can write some of my car tax off. I can´t write off all my taxes on the car. the crux is 1 how much can I write off and is that worthwile to go after. 2 would it be easier to just not write it off at all. the problem is that there been so many scandals where soem Rich corpo have bought a Privet jet and then written off 100% of the jet as tax write off when in reality he might only been able to write off 1-2% of that tax sum. problem been the IRA dont have the resorses to go and tell and prove to MR rich that no he can´t tax write of the whole jets taxes only about 1-2% of the tax sum is valid. now some sneaky companies are a bit more smart and goes well we use the jet for 5% of the tax write off and its not a small sum so we defently will request the 5% if we write it off at 100% or 90% IRA will spot it fast. so we are just going to write off 10-20% (we will be "making" money from this still but its not that insane shit.

@grandtheftautogaming1581

4 ай бұрын

The problem would be that treating his home as a tax write-off would expose his property and personal assets to plaintiffs in civil liability lawsuits or chapter 7 bankruptcy which could result in him losing everything if the judgement of settlement is sufficiently large or if he's forced to file chapter 7 bankruptcy to repay debts to creditors. whereas instead if he doesn't do this then the bankruptcy or lawsuits can only affect the company's assets.

@davidgoodnow269

4 ай бұрын

​@@Zack_Wester I am just going to point out the "privet car" is the car you take sh*ts in -- so NO ONE else is going to want a ride in it!

@monarchco

4 ай бұрын

It literally can be, at least in the US. The IRS explicitly allows any portion of a home or space that is primarily used for business to be written off. So if you have a room that is used as a home office, that takes up 100 sqft in a 1000sqft house, you can write off about 10% of all expenses including mortgage, water, electricity, etc. Now for some people it might make sense to install monitoring, such as an electricity watt meter (if your electricity use for work is more than the square footage percentage).

If Dan filmed himself going to break some fingers using the company car, it still wouldn’t be a tax write-off, but you could subsidise the cost of his bail.

linus is faking anger so that he can go to a therapist as a tax writeoff. (meme, of course)

Dan threatening to "break fingers" is somehow suprisingly convincing

Ah taxes. After moving away from my birth country to another one, I discovered one thing: I don't have issues with paying taxes. I do have issues with how the taxes I pay are used.

@willdabeast6503

4 ай бұрын

And the amount. The amount that disappears into *administration* is absolutely f*ing absurd.

@JZTechEngineering

3 ай бұрын

@@willdabeast6503 Fun fact, it's hard to run a miti trilliomn dollar enterpirse

1:58 that closed mouth yawn.

@olivernicholds

4 ай бұрын

hahahaha, good catch

@alisaen2128

4 ай бұрын

😆😆😆😆😆

fun fact about cts: with current tech, we can do way better scans than top end medical scanners can do of a human, but doing so would give the patient a way higher radiation dose than what is considered safe, so we don't do that. so it might genuinely be dangerous for elijah to do a ct of his head, if the ct they got is designed for non-human scanning

@kingzach74

4 ай бұрын

Yep very true. This is why there are SO MANY safety implementations of the X-ray machines at the company where I work. (I work at a PCB manufacturer)

@_Choke

4 ай бұрын

This is definitely true. I have two 450 kV CT systems at work, and at max power the lower flux of the two will deliver a lethal dose of x-rays in about 16 s. One advantage that medical scanners do have though is the knowledge that your specimens do not have significant variation in their composition, so the hardware and software can be optimized for imaging them. This dramatically speeds up the process, which lowers dose. I wish I could make scans that look as good as medical scans in the same amount of time. But here I am, taking 12 hours to scan nickel airfoils...

linus casually makes the most perfect nintendo switch click sound at 8:40

@elijahperry3454

3 ай бұрын

Watch Nintendo copyright the video now

A tax write off is not a refund.

Tax Write off shirt when?

@mastrer1000

4 ай бұрын

I would honestly prefer a terrible bootleg tax write off shirt

I've seen pools successfully written off *as a business expense* on a corporate tax return when they were provided to a vendor/customer as a legitimate incentive for their business. Many Brampton pharmacists have some real nice pools on behalf of generic drug manufacturers pre- 2008.

@Real_MisterSir

4 ай бұрын

If it's regarded as an employee benefit for mental health and work-life balance to promote better efficiency and stress tolerance - why not.

@mortaak181

4 ай бұрын

@@Real_MisterSir no, it was generic drug companies paying to put in pools for their *customers* ie pharmacists. They claimed it was a business expense the same way taking a client out to dinner is (lol) Like I said it all changed and none of that is allowed anymore.

@the_undead

4 ай бұрын

Something that I don't think a lot of people know is the CRA is much stricter on businesses than the IRS. If Linus actually tried to write off his pool, it would not surprise me in the slightest if the CRA considered going straight for the jugular

@calebjiang4056

2 ай бұрын

yes it would be a business expense, but then Linus would have to pay personal income tax on that, no different than if the company had just paid him the cash directly.

You could do a tax write off on putting Elijah in the CT scanner.

@emiliskog

4 ай бұрын

while playing along with the joke it's a bad idea to xray people unnecessarily

@matthewcohen3521

4 ай бұрын

What's the taxable value of writing off an entire person? Asking for LMG. 😆

@matthew8153

4 ай бұрын

Actually no. Large appliances/medical equipment have a standard useful life and must be depreciated monthly.

Man, Canada is weird. In the US, if you want to get paid in vacations and perks without claiming it all you need is an appointment to the Supreme Court.

Amazing ... need to follow the WAN show more 😆😆

23:10 this is amazing 😂😂

Pretty much spot on. As for the invoicing thing (6:20), yeah that's basically how it works but they require the transaction to be at "arm's length" and "reasonable." Meaning you can't charge significantly more than another business would charge for the same service.

"I. Hate. Computers." -Everyone who works in IT long enough

The difference between a "small" company, like Linus Media Group, and big financial corps, is pretty much the limit of "What am i, as the majority shareholder, willing to fenegle into writing off on taxes". Linus is simply to kind to do that sort of stuff.

@MEatRHIT2009

4 ай бұрын

My dad is an accountant and one of his friends owns a small business and has warned him quite a few times about things being "business expenses" when they really aren't. Like sure the minivan that has your company logo on it and is mostly used for delivering pieces of equipment to customers but is sometimes used for personal stuff is a business expense, but the other minivan the "company" bought that his wife uses to drive to work (at a different place) and drop off the kids at school is *not* a business expense. My dad kinda turns a blind eye to it and doesn't do his friends taxes but does warn him that he could easily get in trouble if they were ever audited.

@kaushalsuvarna5156

4 ай бұрын

My friend's boss gets a new SUV sized car from a big brand every year, of course paid for by the company

@ilyaklimenko5666

4 ай бұрын

You know, this "small" companies, like LTT or MrBeast. Right now, it's rubic cube "they just send it." What will be next? The EV car "they just send it, I don't even declare it".

@MEatRHIT2009

4 ай бұрын

@@kaushalsuvarna5156 That's pretty normal for higher ups, like the video said about the dedicated chargers though there would be some indirect income taxes that would need to be paid by the boss, not sure how that's calculated though.

@tyrannicpuppy

4 ай бұрын

@@MEatRHIT2009 the difference would come down to value. A rubix cube with some custom stickers that is meant to be a promotional gift (which Dbrand would have already paid taxes on the purchase of) would be so easy for an existing company to bang out a few thousand of that a single cube being gifted is literally not worth the cost of follow up in employee time and paperwork costs. A car most assuredly is. There will be a limit under which it costs them more to dig all the shit up than it would get them in taxes that come to maybe two or three cents if they're lucky. It's also a lot harder to hide something like a car. A rubix cube can be handed to you by a rep, whacked on a shelf and never noticed again. A car has to be roadworthy and registered and insured. That's a lot of other corroborating paperwork that leaves a trail which is very easy to follow if they are given reason to go looking. I work admin at a retail company and we cannot raise a journal for anything under $3 and cannot raise a credit claim for less than $15. Anything that falls into those cracks is just a write off (in the chuck it straight in the bin and just wear the cost sense). It's not worth the time of paying someone earning upwards of $20-30 dollars an hour to chase the handful of cents they could recoup by finding it.

Yeah a lot of people definitely do NOT understand how taxes work. The number of people who seem to be insinuating that "tax write off" = "free" shows this. "Oh you can just write it off on your taxes" basically implies "The government is going to just give you your money back." No. No, no, no, no, no, no, no. And easily the classic example of that in the US, which so many people end up learning the hard way, is the mortgage tax deductions.

The thing many people don't understand about why so many hate paying taxes isn't even the paying most of the time. It's they never feel like they can see the benifits the taxes are theoretically going to. When you look at the $15k (way more for Linus) you spent on taxes a year but then look outside and see the poor state of the government services availbile to anyone in your community, you start to realizehow much more you could personally accomplish for you comunity than what the government does with it.

@bobsworth7082

4 ай бұрын

This has been a chronic issue in the UK for a long time now. Our public services, healthcare and infrastructure are falling apart yet we pay the highest taxes since WW2. It's scandalous where the money goes.

@Blinks77

4 ай бұрын

@@bobsworth7082That's part of the con. They're waisting money on purpose so people will resent taxes more, so they can reduce taxes, so public services get even worse...

@JZTechEngineering

3 ай бұрын

But the government acomplishes a lot, we just take it for granted

The way I have come to understand tax write-offs is that, in the case of using them for a purchase, you basically bought the thing using pre-tax dollars, same as making 401(k) or health insurance contributions.

I think what's missed is not the fact that LMG is too big to get away with stuff, but that it's too small to influence policy, and too Canadian to get away with things that US corpos do.

@Real_MisterSir

4 ай бұрын

Rather it's run by people with too much of a conscience to even attempt any -loopholes- optimization strategies

This was really funny! Loved it!

More of this! This is Linus at his best.

I know a guy, who is manager in a bank and write of hair dryer and vacuum cleaner. I couldn't sleep at night fearing audit.

Best content I have seen awhile on the Wan show

Whats a bummer is - This is what it sounds like, when an honest person talks about the taxes. In the states - there are plenty of people who get away with never paying taxes. They will tell you is that they deserve to not have to pay taxes. And the IRS will tell you it’s too expensive to go after them and on mass.

@HungrysitesRu

4 ай бұрын

Suuuuuure.... Every phone charger in Linus' house is definitely paid out of pocket.

@Metal_Maxine

4 ай бұрын

@@HungrysitesRu Given the rate Linus seems to lose things, they (or more likely the replacements) probably are.

@Segphalt

4 ай бұрын

It's worse even, the IRS is more likely to go after little guys who made small errors and mistakes than the big fish because the resources to go after them is substantially less than it is to go after the people who cheat on the millions of dollars. If I get a bill from the IRS, I'm just going to pay it because I can't fight it and accept I probably messed something up. Meanwhile a billionaire has an on staff tax guy and lawyer who's only job is to dispute the claim.

@jackieAZ

4 ай бұрын

@@HungrysitesRubro let’s be real, who actually cares with that kind of stuff lol

@HungrysitesRu

4 ай бұрын

@@jackieAZ Exactly. And 30x$5k home devices in the scale of $1B business (as they claim) is also within the limits of error. They have thousands of units just collecting dust on the shelves.

All of this talk about tax write offs reminds me of that one scene from Schitts Creek where the dad is yelling about things not being a tax writeoff

The pain/anger in Linus's face 😂

I admit i dont know alot about taxes... though thats likely because of how my country, and my situation, work, means i dont really need to Sales Tax is VAT, so (with a couple rare exceptions online) i never see the non-tax number, unless i go out of my way to look for it. I dont have to file anything either.

@xenio8736

4 ай бұрын

French ?

@supervegito2277

4 ай бұрын

@@xenio8736 Close, Danish.

I genuinely laughed most of the 29 minutes... One of the funniest LTT video! Having Linus lose his temper and Dan and Luke poking him was so funny!

You could set up an advanced heat pump system that moves heat from your server room to heat other rooms in your house (tech connections mentions this in his latest hvac videos)

I had an argument with an ex-girlfriend where she asked me why we couldn't have European vacations every month. She reasoned that you could label the trips as "meetings with potential clients."

@notbadsince97

8 күн бұрын

Most people’s tax advice is just fraud

It is AMAZING how few people actually understand corporate taxes because of how few people HAVE incorporated (either a separate entity or have self-incorporated).

This was so funny. Obviously they were teasing him but Linus took it so personally lol

Also worth understanding that tax laws differ country to country and in some places like USA state to state.

Thank you for this explanation helps make sense how taxes work

5:03 isn't possible anymore. What was described there is very close to a synthetic lease. Auditors now heavily crack down on these. You might already know that, but just in case some commenters don't: yes, this "loophole" has been exploited before and is now closed.

@notbadsince97

8 күн бұрын

As an auditor we tested related party transactions and these type of non arm lengths transactions because the risk of fraud is so high and common

Watching & Hearing Luke & Dan act like teenage boys winding Dad Linus up and ribbing him while Linus just stares into the void with a deadpan face, stress aging by decades will never NOT be hilarious 😂

So many people genuinely think that if a business makes $100 dollars and spends $50 on legitimate business expenses that the government will just comp them the entire $50 if they "write it off".

@Real_MisterSir

4 ай бұрын

I mean that's genuinely how it works - it's just implementation that differs depending on some factors such as what industry segment your company is registered in, what your operating procedures are, what your typical income revolves around, etc. The goal of companies for the most part is to reach a net zero - where income revenue is poured straight back into the company to scale it rather than going to the government as tax -scaling in the form of business expenses that optimizes the company for future growth. No government wants businesses that stale out, so reaching net zero is incentivized. Any leftover capital is essentially useless (apart from being regarded as a safety blanket in an emergency, but even then there are other options to consider that don't rely on baseline capital). If a company pays a lot of company tax, it's generally regarded as an unoptimized business. Afterall, it's better for a country if the economy comes not from business taxation, but rather employee taxation and goods trade. Because where taxing a worker doesn't limit their scale of objective value generation, taxing a company DOES limit their ability to scale and grow and turn into a 10x or 100x economic factor in the future, with potential for many more job positions (that then get taxed individually).

@Sinaeb

4 ай бұрын

@@BeerMoneyforTokyo pay your employees more and then suddenly as a whole you pay less taxes

i love how chaotic this episode is 😅😂

@18:00 Luke is confusing a NMRI with a CT scanner. NMRI works with magnets, CT with radiation.

Personally I would really love if you guys published 3d models of the stuff you CT scan. Not the most widely useful but could be invaluable in the right circumstances

If you spun off the pool and other assets into a holding/leasing company, you could then use that revenue toward the maintainence of the pool tax-free.

This makes me laugh more than anything in a long time and I'm not sure why

Industrial CT scanners are insanely cool and facenating. Been using it at my university for the last 4 years

Yeah, I think this is a confusion on Linus's part between what is legal and what is common. So many people commit tax fraud all the time in the states (I'm not sure about canada). We've kinda taken the approach of if it can be twisted as a right off it is a right off.

I think American viewers may underestimate the tax burden in Canad for rich people like Linus. If the IRS scares you, the CRA would make you sh*t bricks.

They should teach this stuff ( taxes and money management) from high school onwards.

the type of "personal business" you were thinking of in the middle is called a sole proprietorship.

2 things that really get Linus riled up: taxes and paint.

I need to take a tax code class for sure

But IF you steal stuff from the office (per EVERY SINGLE extreme tech upgrade where Linus finds company assets in employee residences)... Then it's free! And no taxes paid on it by the "owner" who took it from the company!!!!

@josephtimothy1398

4 ай бұрын

It’s still his company. It doesn’t look good on a balance sheet that shows shrinkage from a company that doesn’t have brick and mortar stores. This is just as stupid as the idea of making needless expenses to pay less tax. This is broke man mindset

@josephtimothy1398

4 ай бұрын

This comment is the epitome of broke people mindsets

@davidt3880

4 ай бұрын

@@josephtimothy1398 This comment is the epitome of the misunderstanding of embezzlement of company assets good sir.

@matthewcohen3521

4 ай бұрын

Whereas in the US, you are specifically REQUIRED to disclose and pay taxes on stolen and other illegally aquired income and property. Rob a bank? Better report the money you stole! Sold drugs? Don't forget to report that income! Steal a car? Better disclose the fair market value as a capital gain!

@davidt3880

4 ай бұрын

@@matthewcohen3521 Probably the best part of IRS pub 17!

ct scan the logistic papers of the tax right-off of the ct scanner, make it a shirt and sell it, tax right-off the money making the shirts. I am pre-ordering 10 size xl if the the ticket on the washing instructions say, :"for proper cleaning, just tax right-off the shirt"

I blame short form grindset content for this. Everyone throws the term tax write off around, but writing off EVERYTHING left and right will land you in a big audit (at least here in the US).

@avalanche1990

20 күн бұрын

Same with Canada. The CRA very often is more likely to go after people for doing that. In fact theres been recent court cases that had the defendant walking away beaten with a big tax bill for their stupidity

30 minutes of winding Linus up is A+ content.

In Canada whether small business or working for a business, whatever you make over 6 figures gets cut in half and sent to the gov in tax

Surely the difference in cost between what you would do yourself, vs what you would do for a video could reduce your taxable income, or be paid amount that by the company account which would lower the net profit and thus less business tax.

This is like the seinfeld episode where Kramer talks about write offs

I wonder what the difference in model resolution the new CT scanner has compared to the scanners iFixit uses?

17:35 please be very careful with closing the box because scattered radiation is still radiation. Or at the very least look up how the basic protocols of handling radioactive stuff.

That subsidiary mention at 5:20 is basically how shell corporations work for money injection which *is* fraud 😅

As a tax accountant, this video is killing me in every way

Luke being a troll is simultaneously very entertaining and rage inducing.

yes IRS, this pool was absolutely essential to my business "the consumer tech review business?" yes

I dunno about the Canadian Tax Code (because I'm not Canadian), but with the US Tax Code you have to be sufficiently wealthy to be able to manipulate your taxes to the degree that people seem to think Linus does. This is because it costs money to parse through the US Tax Code to that degree because you have to hire tax lawyers to do it for you, the US Tax Code is so complex. There's a very good reason why there's a massive industry surrounding taxation in the US. For Linus to exploit the Tax Code to that degree he would probably have to pay more in lawyer fees than he would ever get out of any tax breaks. For it to be worth it, you would have to make such a massive amount of money that paying tax lawyers full time would essentially be a no-brainer and that's not Linus.

Linux Tax Tips, I would subscribe to that.

As an accountant, I completely share the irritating feelings towards those ignorant comments online about tax - and I am pleasantly surprise that how much Linus actually knows about tax and can confirm that his explanations are generally correct (but don’t take his comment and analogy as financial or tax advice)

in the us at least you can also hold a board meeting 12x per year in your home and find a comparable quality business/airbnb and write off that much for using it for board meetings, might be something similar in canada idk, tax codes are weird.

I think Linus and crew need to make an actual video talking about how taxes work for a business. It would definitely be outside the normal for a tech channel but it would be fun to see how they present it. Obviously they would need a Canadian tax expert to help them with the video.

@ShadowFalcon

3 ай бұрын

Honestly, I'd love to see all the yanks in the comments react to how taxes work in a country that isn't the US 🤣

Elijah is just a massive insurance liability at this point. Better put him in more videos to offset the impending increase in premiums. Plus he's funny as hell to watch. 😆

isnt the pool server infrastructure since its cooling it. also cant the pool be used as a conference space for meetings, cant it be claimed as adaptive effort to comply with neurotypical workspace optimizations

I read the title as "Linus keeps ranting about TEXAS" and kept thinking "when is he going to start talking about Texas? :'D:'D

Yeah, I own a business and it’s not that simple. Taxes are nerve wracking. I can’t imagine how crazy it is in Canada. Our tax code in America is so confusing.

My favorite thing about Linus educating the audience about how businesses and taxes work is that the ones who will understand, already aren’t commenting such stupid comments, and the ones who are commenting them will never be capable of understanding how it works, which is why they’re commenting.

Hot tub WAN show under the Hot tubs and pools category on Twitch?

"I don't even think you can joke about that" Linus trying not to have another wan show incident

Lol @Luke at 1:59 with that stealth yawn

Having misread the title, I was fully wanting Linus to go off on Texans...

19:00 "It's like, they don't wanna understand!" One step closer to the truth, Linus.

A great Ideawold be taking a Ct scan of phones and showing how easy it is for Casetify to make a case without stealing from others

Keeping the house renovations as an example, assuming the house is owned by LS (the person): Scenario A: LMG films a renovation video and makes revenue off the video. LS pays for the renovation costs. -> The profits of the video go towards the profits of LMG for the year, for which they will have to pay company income tax. -> Depending on tax legislation, LS may be able to write off some portion of the renovation costs, since his personal money was used for home renovations. -> The renovation labour may be counted as a taxable benefit, which LS would have to pay income tax on. Scenario B: LMG films a renovation video and covers the costs of the renovation. LS uses none of his personal money. -> The renovation costs are counted as taxable benefit. LS will have to pay income tax proportional to the value of the benefit. -> LMG makes some money off the video, but also has to pay more costs. Since company income tax is paid on the net profit of the year, LMG will have to pay less tax this way (because they made less money) Scenario C: LMG films a renovation video and initially pays for the costs of the renovation. Afterwards LMG bills LS for the construction work. -> LMG makes money on both the video and the construction, making lots of profit. LMG will have to pay company income tax on the profit (a lot of profit in this case). -> LS may be able to write off a portion of the costs on his personal tax, similar to if he had the renovation done by any other construction company. Scenario D: LMG films a renovation video and covers the construction costs. LS bills LMG for the use of his personal property for commercial purposes. -> LMG makes money on the video, but also has even higher costs than in scenario B. This reduces the net profit of LMG, also decreasing the amount of tax they pay. -> LS may have to pay income tax proportional to the value of the renovations. In addition LS will have to pay income tax on the billed amount. In either case, the net tax paid should be roughly the same amount. The only difference is who pays the tax. From the company perspective, the optimal choice would be the one where the company makes the most money, because that is the purpose of an incorporation: to create profit for its shareholders. Tax write-offs don't make stuff free. The company still pays for the stuff they buy. Assuming the company only buys things for the purpose of making money (as a company should), the bought stuff may be written off as losses. What this means is that there is some gross profit a company makes each year (revenue). The losses (write-offs) are then subtracted from this, forming the net profit (revenue - losses = profit). The company then pays tax on the profit. After paying the taxes, the company still has some money left and it may choose to pay out a proportion of the profit to its shareholders as dividends. If the profit is low, the dividends are low, and the shares may lose value. As the shares lose value, the net worth of the company decreases, and they may not be able to get as large loans from banks, limiting their ability to grow. This in turn makes the profit (and dividends) grow at a worse rate, making the shares less valuable. You may notice a cycle. This cycle is basically why it is not beneficial for incorporations to splurge all their money for the sake of paying less tax. Oh, and even if the incorporation splurges all their money for the sake of paying less tax, they still end up paying taxes in the form of sales tax/VAT. So in summary, there are two things in life you can't avoid. Dying and paying taxes.

"You don't have to pay taxes on money you don't make" - - - not yet

@Joeseanag24

4 ай бұрын

"You had a deficit? Mmm there's a tax for that" - A very oversimplified man

@isocuda

4 ай бұрын

Software companies reading 2024 US tax code: Uhhhhhhh that's happening now

@Real_MisterSir

4 ай бұрын

Unity trying to put a price tag on individual game downloads even if that game is f2p be like:

"I hope this email finds you before I do"

It's almost like taxes are really complicated and requires an entire semester dedicated to learning about them. There's a reason accountants exist

Nice LTX hoodie! Bet he wrote it off though (he wore it in a video)

Is the difference between the Canadian tax code and the US tax code. I'm pretty sure in the US people would have written off the pool and charge the company for use.

Dan is seriously hilarious, favourite person even if he isn’t on camera 😂

Cant write off the house unless linus does a video in every room

tax evasion is like that one really hard side quest you don't have to do it to win the game but if you want to 100% it you do

It sounds like Linus is describing something similar to if half my house is an income suite I can write off the repairs to the house that suite