Quote Originally Posted by pbromaghin View Post
You can always go buy all the cool stuff you want, start your business, and when it fails write it all off on Schedule C of your 1040. It makes a nice discount equal to your highest marginal tax rate and you get to keep the stuff.
En-n-n-nh, anyone considering this might want to study the fine print. I am not a tax wizard, I don't even pretend to be, but I did make some side money as a sole proprietorship decades ago. I seem to recall there are some guidelines to differentiate between a business and a hobby and it involves showing some profit at least occasionally to be considered a business, just to prevent folks doing as you describe. Of course, as a practical matter, you might get away with it, not because it's legal but because they don't have time and manpower to pursue nickel and dime stuff.

Just my 1.53 after tax cents