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A comment on Ex-Netflix VP found guilty of awarding tech contracts in exchange for bribes. Parent comment

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by anotha1 on Wednesday May 05, 2021 @07:50AM (#27048730)
Yeah, probably not unethical from that standpoint. My dad seemed to think it was some sort tax avoiding inheritance scheme.

I guess my question would be, is there a point where it does become illegal even if there was an individual owner? Is there a threshold where leasing at higher than market rate becomes illegal?

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Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by lotsofpulp on Wednesday May 05, 2021 @10:57AM (#27050678)
Why would it be illegal to pay yourself more than market rate?

In the US, you typically want different entities owning the real estate versus the ones operating the business for liability and tax purposes. The IRS treats owners' basis differently based on whether the income is due to passive (real estate rental) or non passive activity (operations).

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Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by anotha1 on Wednesday May 05, 2021 @11:08AM (#27050852)
Why? Idk that's why I'm asking.

And your comment didn't help clear anything up other than getting across that you are obviously superior in the field of tax law.

Thanks.

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