Jerryrigeverything can afford his items due to tax write offs.

[starsmine]

On 3/31/2024 at 1:24 AM, wanderingfool2 said:

Boo hoo, you think I'm a fool; you are still ignorant and blind at what people were implying.  Your whole rant video essentially didn't address a single thing that people were implying [which is that you are using it as a tax write-off]

 

You will find that there are MANY rich people out there who WILL use little justification to declare something as a business expense. [It's the whole joke that people will "go out to dinner" and call it a "meeting"]  Are you seriously that sheltered that you don't realize that?  It goes back to my post on page 1, people know they can usually get away with things [People stretch the rules all the time, need I remind you that you operated out of a non-commercial building and were effectively forced out of the house]

 

People, especially rich people, will generate "business expenses" for personal items, I've seen it happen and am friends with enough accountants of millionaires who frequently talk about how they see it happen frequently [although they never drop names or they'd get in trouble].  Seriously, I know of one person who has labelled their 3 decked out vehicles as business expenses because they use them for "business"...sure if they get audited it would likely be reversed but it will be statute barred by the time it's likely caught.

 

Utilizing a home as a film shoot also 100% would entitle someone to write off personal tax expenses as well [S4-F2-C2].  If one were to justify that the whole room cooling was intended for the whole video concept any "costs" associated with that would classify as a business expense.  It's a whole grey area of taxes.

 

The tl;dr there can and will be people who will write it off as an expense.  Just like how there are many family businesses who conveniently hired their family and pay them just enough to not get really taxed.

While you can write of personal expenses as a business write off, that requires the MAJORITY of the use of the thing to be business and only a minority of it be personal. Sometimes you can do partial right offs sure. but you cant write off the entire pool expense as 95% of the time its for personal use and only been in a couple of shoots for the company. If Linus is also using it for company parties, then sure one could write off like 10% of the cost of the pool, but not the whole thing.

[djksm]

On 3/28/2024 at 8:50 PM, LAwLz said:

taking funds that could go to schools

hahahahahaaahhaaa you think schools will make good decisions with the money??

my school bought brand new 4000 dollar screens fore every single teacher, but still cant afford to clean the place up

[wanderingfool2]

35 minutes ago, LinusTech said:

Neat. You know someone who committed light tax fraud, so I expensed by pool, evading 10s of thousands of dollars in taxes? 

 

That's the logical leap that I object to. 

 

Also, my explanation is fine. An oversimplification, but fine. 

 

Would I be wrong if I said "cars can only be driven by their owners"?

 

They are so easy to steal and people do it without getting caught so that's wrong then?

 

Look, if you want to have a conversation about how tax law is so complicated that compliance is difficult and enforcement is nearly impossible and the way the current system allows the wealthy to pay less than their fair share, that's fair game. I agree. Just keep accusations against me out of it, unless you work for the CRA. 

Congratulations on not understanding.  I never said you WERE, I was saying people saying tax write-off is implying that's what they mean and your rant mischaracterizes as those people as instead of an accusatory/joking thing as being a pleb who doesn't understand tax [which I think a large chunk do know what they are saying, you just lack understanding or deflecting what they are saying]

 

Your explanation isn't fine, because there are already 2 people in this thread who refer to your comment on tax write-offs; when JRE's case is 100% something a tax write-off can help with.  Your simplification and accusation that those using the word tax write-off don't know what they are talking about is causing more of an issue.

 

Your answer as well isn't right either, as you MISS the general statement; you misconstrue the reasoning to the extent that people watching get the wrong idea of what a tax write-off is.  While missing the obvious answer, the answer being "I didn't write off anything associated with the pool", instead of making a clip that doesn't actually explain the general idea of a tax write-off.

 

To put the car example, yes making a statement "cars can only be driven by their owners" is wrong if you made that statement in response to comments like "bet he didn't get the owners permission to drive it like that".

 

It's also not "light tax fraud", the fact that you read what I wrote and thought it's "light tax fraud" is actually worrying.  It's a VERY common practice that ACTUALLY costs the government billions each year.  The witnessing the writing off of a $100k+ vehicle is not something I call "light tax fraud".  The statement that IT's a COMMON practice isn't directly accusing you, it's saying it's a very prevalent practice and so people seeing you making videos it's a joke/accusation by them that it's to write off taxes.

 

I'm not accusing you, but you are a public figure who posts videos online and has shown that while separate legal entities there is still close ties between personal and company wide resources; of course you are going to have people who make assumptions or think you might fall into a category

 

But hey you want an accusation:

Your team is either mischaracterizing the pricing of the cable, isn't doing proper due diligence, or you provided the wrong link and despite myself pointing out that the cable in question costs too much vs what is stated IT STILL isn't corrected

 

58 minutes ago, starsmine said:

While you can write of personal expenses as a business write off, that requires the MAJORITY of the use of the thing to be business and only a minority of it be personal. Sometimes you can do partial right offs sure. but you cant write off the entire pool expense as 95% of the time its for personal use and only been in a couple of shoots for the company. If Linus is also using it for company parties, then sure one could write off like 10% of the cost of the pool, but not the whole thing.

Yes, I am aware that legally you can only declare a portion of it, although if you did something specific for the sake of the video those expenses would be considered to be fully a business expense.  That is however not what Linus stated, his statement is effectively that it cannot be a business expense no matter how many times he films in it which is factually wrong.

 

What I am also stating though is that there are lots of people who actually do write off more than what is allowable, which is where the whole "tax write-off" portion is coming to.  It's not that people misunderstand what a tax write-off is, there is either a joking (seriously at a former work we used to always joke about it and how "hey lets just write this off" when obviously it wasn't) or an accusation.

[LAwLz]

49 minutes ago, djksm said:

hahahahahaaahhaaa you think schools will make good decisions with the money??

my school bought brand new 4000 dollar screens fore every single teacher, but still cant afford to clean the place up

Even if you disagree with how the money is spent, I think we can all agree that properly funding schools is an important thing.

How much money a school gets and how the money is allocated are two separate things.

 

If you still don't like my arguments then you could always mentally substitute the word "school" for roads, hospitals, firefighters, or some tax-funded thing you enjoy and benefit from.

Try and see the bigger picture instead of getting caught up on some specific example.

[starsmine]

1 hour ago, djksm said:

hahahahahaaahhaaa you think schools will make good decisions with the money??

my school bought brand new 4000 dollar screens fore every single teacher, but still cant afford to clean the place up

So we should underfund and underinvest in the people who will solve the problems of today and the future. K. 

[djksm]

1 hour ago, starsmine said:

So we should underfund and underinvest in the people who will solve the problems of today and the future. K. 

its not like they will do anything good... half the people in my school are failing, and some kid brought a nerf gun to school and pretended to shoot at teachers

[cmndr]

How tax write offs losely work...

If you get $100 in revenue, but spend $60 to make it happen, you can "write off" the $60 from the $100 revenue. You have $40 profit. You're taxed on the $40.

If you could instead get $90 revenue by only spending $20, you'd have $70 profit and would be taxed on this. In this case, spending more to increase revenue leaves you behind. 

There are some additional complexities, like amortization periods, carry forward, carry back, etc. but the general concept remains. 

[starsmine]

2 hours ago, djksm said:

its not like they will do anything good... half the people in my school are failing, and some kid brought a nerf gun to school and pretended to shoot at teachers

So we should just give up. and have an even more illiterate population who will not have the skills for high value jobs to give back to society with. 


So true that every dollar invested in school does not come back 3-10x in terms of increased GDP, so true man. 

There are SOME dumb people, and some smart people who do dumb shit as a kid, so investing in education, totally not worth it. Im tots with you man. They don't do any good. 

[Kisai]

4 hours ago, starsmine said:

So we should just give up. and have an even more illiterate population who will not have the skills for high value jobs to give back to society with. 

I spent about 2 hour with an American vtuber doing her taxes and a lot of stuff is like:

"Is this advertising/marketing" or "can I write this off?"

 

Like there's a very basic rule for both CAN and US:

"Did you use it for business? This year?"

 

If you buy a game, or a piece of hardware in 2023, and you make a video of it, stream using it/playing it, play it to completion (if it's a game) or otherwise demonstrate that it was for generating income you can write it off. If you merely played it for 10 minutes on stream to review it and then you don't actually use it until 2024, or never, you can't write that off. That's why a lot of these Raid shadow legends/Genshin impact/loot box stuff is popular on stream because the game is FREE, but you can write off the gacha gambing as a loss. Why wouldn't you do it? if you need to lose a few thousand dollars to make your tax burden zero, may as well right?

 

It's stupid on it's face, because you're just throwing away money, but because it lowers the tax burden, you're encouraged to do it. There are things that you could buy as better "property" that has to be written off over multiple years, but at least you get direct benefit from it.

 

When a piece of hardware is destroyed, it's value becomes zero. You can write off the entire value/remaining value of the hardware since it's been "Disposed of." Personally this is a pain in the butt and it encourages companies to dispose of things that are still good, and floods the secondary market with second hand hardware that only has a few months of use before the OS stops receiving updates (eg you can still buy refurb 6th gen intel dells on memory express/canada computers/best buy/etc)

 

I'd rather tax laws be simplified down to:

"you can write off 100% of anything you buy for yourself or your business as long as it's bought directly to support your personal or business activity and not disposed of for 5 years (10 for vehicles/heavy machinery and 30 for real estate.) Anything disposed of/gifted/sold to someone else must return the original write off. Anything over (time) can be sold or given away, and the entity that gets it, can not write it off a second time." 

 

So things like food and clothing, are for your personal use, but you should be able to write it off, regardless if you have a business or not. It's only fair. If you're buying food for others, that no longer applies, that requires a business expensive. So you can't fill your fridge and then write it off. 

 

BTW, this IS why a lot of business cut spending at the end of the year so January is when all the job cuts and marketing/advertising is cut. Investors sell their "losing stocks" at the end of the year to write off gains from other stocks. So "stocks doing poorly" tend to dive a lot harder.

 

[starsmine]

14 minutes ago, Kisai said:

I spent about 2 hour with an American vtuber doing her taxes and a lot of stuff is like:

"Is this advertising/marketing" or "can I write this off?"

 

Like there's a very basic rule for both CAN and US:

"Did you use it for business? This year?"

 

If you buy a game, or a piece of hardware in 2023, and you make a video of it, stream using it/playing it, play it to completion (if it's a game) or otherwise demonstrate that it was for generating income you can write it off. If you merely played it for 10 minutes on stream to review it and then you don't actually use it until 2024, or never, you can't write that off. That's why a lot of these Raid shadow legends/Genshin impact/loot box stuff is popular on stream because the game is FREE, but you can write off the gacha gambing as a loss. Why wouldn't you do it? if you need to lose a few thousand dollars to make your tax burden zero, may as well right?

 

It's stupid on it's face, because you're just throwing away money, but because it lowers the tax burden, you're encouraged to do it. There are things that you could buy as better "property" that has to be written off over multiple years, but at least you get direct benefit from it.

 

When a piece of hardware is destroyed, it's value becomes zero. You can write off the entire value/remaining value of the hardware since it's been "Disposed of." Personally this is a pain in the butt and it encourages companies to dispose of things that are still good, and floods the secondary market with second hand hardware that only has a few months of use before the OS stops receiving updates (eg you can still buy refurb 6th gen intel dells on memory express/canada computers/best buy/etc)

 

I'd rather tax laws be simplified down to:

"you can write off 100% of anything you buy for yourself or your business as long as it's bought directly to support your personal or business activity and not disposed of for 5 years (10 for vehicles/heavy machinery and 30 for real estate.) Anything disposed of/gifted/sold to someone else must return the original write off. Anything over (time) can be sold or given away, and the entity that gets it, can not write it off a second time." 

 

So things like food and clothing, are for your personal use, but you should be able to write it off, regardless if you have a business or not. It's only fair. If you're buying food for others, that no longer applies, that requires a business expensive. So you can't fill your fridge and then write it off. 

 

BTW, this IS why a lot of business cut spending at the end of the year so January is when all the job cuts and marketing/advertising is cut. Investors sell their "losing stocks" at the end of the year to write off gains from other stocks. So "stocks doing poorly" tend to dive a lot harder.

 

I think you quoted the wrong person

[wanderingfool2]

15 minutes ago, Kisai said:

I'd rather tax laws be simplified down to:

"you can write off 100% of anything you buy for yourself or your business as long as it's bought directly to support your personal or business activity and not disposed of for 5 years (10 for vehicles/heavy machinery and 30 for real estate.) Anything disposed of/gifted/sold to someone else must return the original write off. Anything over (time) can be sold or given away, and the entity that gets it, can not write it off a second time." 

 

So things like food and clothing, are for your personal use, but you should be able to write it off, regardless if you have a business or not. It's only fair. If you're buying food for others, that no longer applies, that requires a business expensive. So you can't fill your fridge and then write it off. 

Honestly, my opinion would be the get rid of the general concept of income tax all together, and just run it off a consumption tax [and taxing imported items more strictly]

 

Then making standard [non luxury] food option have a lower/no tax rate, or other essentials of life at a low tax rate. 

 

It would generally solve the problem of manufactured losses, and encourage the reselling of outdated equipment [in your example].  It would also generally have more money flowing through the economy as people have more to "spend" [overall it does balance out, but those exceedingly wealthy buying million dollar yachts would be contributing more of their wealth so on average an average person's tax burden should be lower]

[Kisai]

56 minutes ago, wanderingfool2 said:

Honestly, my opinion would be the get rid of the general concept of income tax all together, and just run it off a consumption tax [and taxing imported items more strictly]

That gets into the "under the table" tax problem. Consumption taxes work when everyone is subject to them. The reality is that "income" taxes are aimed at property owners, and "consumption taxes" are aimed at luxury products. The taxes are aimed at those who can afford to pay it most, but everyone who can't is collateral damage.

 

Like it irks me so much seeing a tax bill of $10,000 and I'm just sitting there going "was I supposed to write off something else? Was I supposed to buy a car and write it off? Was I supposed to buy losing stocks?"

 

Like when you live in Metro Vancouver and the average rental is around $3000/mo , if you're not making around $150k/yr, you're poor.

Yet Canada doesn't think you're poor unless you make less than 55K

[starsmine]

27 minutes ago, Kisai said:

That gets into the "under the table" tax problem. Consumption taxes work when everyone is subject to them. The reality is that "income" taxes are aimed at property owners, and "consumption taxes" are aimed at luxury products. The taxes are aimed at those who can afford to pay it most, but everyone who can't is collateral damage.

 

Like it irks me so much seeing a tax bill of $10,000 and I'm just sitting there going "was I supposed to write off something else? Was I supposed to buy a car and write it off? Was I supposed to buy losing stocks?"

 

Like when you live in Metro Vancouver and the average rental is around $3000/mo , if you're not making around $150k/yr, you're poor.

Yet Canada doesn't think you're poor unless you make less than 55K

wait, does Canada not get a standard deduction?

At least in the US, unless you do itemized deductions over 14k. the first 14k you make is NOT taxed as thats the standard deduction. its only then you start using the first bracket. 

But regardless you shouldn't be seeing a tax bill regardless if you are withholding. 

Like not counting tax credits which you can get by having dependents or buying home insulation during the correct year or EITC (which doesnt apply at this high of income anyways) your burden is just this in the US because of the std deduction of making an equivalent ammount of USD as a single person. This also isnt accounting for things like how 401k could be part of your compensation which are not taxed the same way, or an IRA. One of those gets only taxed when you put in money the other when you pull out or something like that, I dont remeber which is which right now. 

[wanderingfool2]

46 minutes ago, Kisai said:

That gets into the "under the table" tax problem. Consumption taxes work when everyone is subject to them. The reality is that "income" taxes are aimed at property owners, and "consumption taxes" are aimed at luxury products. The taxes are aimed at those who can afford to pay it most, but everyone who can't is collateral damage.

It's easier to track though, just establish getting bank records reported into tax law.  Sure there will always be ways to circumvent, but a lot of under the table tax problem also applies to avoiding reporting profits as well.

 

The thing is it would be easier for smaller players to avoid, instead of the rich this time though.

 

Not saying it's a perfect system, but there's so many people who already avoid paying taxes who are in the literal sense getting government benefits for being "poor" despite actually making quite a bit of money

[Kisai]

1 hour ago, starsmine said:

wait, does Canada not get a standard deduction?

Nope, if you make 15K or less, you're "not required" to file a tax return.

 

1 hour ago, starsmine said:

But regardless you shouldn't be seeing a tax bill regardless if you are withholding. 
 

So the amount I made in 2023 falls in the 20.50%

 

When the property was sold to a developer, I made a point of "no moving until 2024" because the amount of the old place is three digits and the mount of the current place is three and a half times the old place. so I could write off about 30% of the rent because of the amount used by the computers. To give you an idea, I could write off around $3000 before, and the current place about $10,000 for tax year 2024. So totally screwed this year, because the tax payments are based on what was made in 2023.

 

See the problem? If I made the same amount in 2023 and 2024, but the rent tripled between 2023 and 2024 (new place), I'm still only able to write off the same amount in 2023 and 2024.

 

At least tax year 2025 I can write off all the stuff the movers destroyed in 2024.

 

But you know what would really really suck? If I had to move somewhere else in Canada just to keep surviving, because nobody in Metro Vancouver can realistically live here at the moment.  

I'd have to move the middle of Saskatchewan, and even then that's only a 2X increase, not a 3X increase.