Re:Student Loan Debt Crisis Is Bankrupting Millennials
by whamlastxmas on Friday June 14, 2019 @01:57PM
(#20185100)
In the US, I'm pretty sure you couldn't get away with this. Business expenses are held against income to determine how much tax you pay. There are strict guidelines on what counts as a business expense versus a personal expense. I suspect spending a ton on groceries and rent/mortgage for a residential address would raise some flags and get you audited.
Re:Student Loan Debt Crisis Is Bankrupting Millennials
by Gibbon1 on Friday June 14, 2019 @04:31PM
(#20186432)
There is always the classic income tax dodge.
Incorporate, then hire your wife, mistress, children, and random family members.
Re:Student Loan Debt Crisis Is Bankrupting Millennials
by whamlastxmas on Friday June 14, 2019 @04:50PM
(#20186569)
If you're employing people in lower tax brackets that might save a little bit of money if they funnel it back to you. But I don't generally hear about that tactic. It would be more relevant if you were wanting to bleed a not for profit entity where there are legal caps on the types of income executives can make.
The classic tax dodge is the $1 salary and getting taxed at capital gains rates instead
Re:Student Loan Debt Crisis Is Bankrupting Millennials
by Gibbon1 on Friday June 14, 2019 @05:48PM
(#20186938)
Back when top marginal rates were 70% And corporate/capital gains taxes were also high. It was a classic thing.
Re:Student Loan Debt Crisis Is Bankrupting Millennials
by mamon on Friday June 14, 2019 @01:57PM
(#20185088)
Limited liablity only works one way: individual cannot be personally liable for the debt of the corporation. But if you, the owner, are in debt then there's a simple solution for your creditor: seize your shares in said corporation (and after gaining control over corporation, just take money from its bank account).
Re:Student Loan Debt Crisis Is Bankrupting Millennials
by fjsolwmv on Friday June 14, 2019 @01:40PM
(#20184929)
Usually, the people owed the debt is not the people who the loan was spent on. You aren't playing dirty back at them, you are just making someone else the victim of the monetary loss.
Re:Student Loan Debt Crisis Is Bankrupting Millennials
by munk-a on Friday June 14, 2019 @01:43PM
(#20184963)
No, I reject this. The loan system in the US (at least) is dirty through and through, and anyone who ends up buying debt off of a major corporation is especially sleazy. And heck, if the banks get in trouble through irresponsible lending it'll be fine for them - their loss will end up coming out of all of our pockets.
If you get a job at Corporation-X your wages can be garnished for failure to pay a debt. If you own your own business and a your corporation is employed by Corporation-X your business can't have it's income interfered with.
How you get paid by your corporation is not fit for discussion on this forum.
Note: This applies to Canadian tax/debt law. I don't know how well it works elsewhere.
If you know a doctor who owns their own practice ask them 'how they do it'.