Comment by nightski
7 years ago
It doesn't make sense in terms of raw profit, I agree. But many expenses are paid pre-tax effectively making them cheaper than if you had paid for them with post-tax dollars.
7 years ago
It doesn't make sense in terms of raw profit, I agree. But many expenses are paid pre-tax effectively making them cheaper than if you had paid for them with post-tax dollars.
aren't all expenses pre (income)tax, by definition?
Not really. A good example is business meals. You can only deduct 50% of a meal with a substantial business purpose.