Quote:
Which is a fixed expense.Originally Posted by GMAN
That is why it is good to pay yourself a flat salary. If you only want to earn a minimum amount to meet household expenses then it is easy to simply pay yourself $500, $1,000 or whatever you need to cover your household expenses each week or month. It makes it cleaner to just pay yourself a salary if that is what you want to do.
Quote:
Household expenses are not a part of your business expenses.
But a salary is. My salary is equal to my household expenses. They are one in the same. Now we're simply arguing about what it is called.Household expenses are not a part of your business expenses.
Quote:
If that were the case then you could write all of your household expenses off your taxes.
Accounting for tax purposes and accounting for purposes of determining cost of operation are two completely different things. A sole proprietor can't write off wages on his taxes. I suppose there's no reason to include them then?If that were the case then you could write all of your household expenses off your taxes.