Comment by op00to
1 year ago
Maybe it’s a tax dodge! “Forgive” 100k of “overages” which cost Netlify next to nothing, then report it as a write off on taxes.
1 year ago
Maybe it’s a tax dodge! “Forgive” 100k of “overages” which cost Netlify next to nothing, then report it as a write off on taxes.
That would potentially make this situation much, much worse (in the US tax system...YMMV). If Netfly forgives a business debt and reports it to the IRS as uncollectable so they can write it off, the IRS can consider all or part of the forgiven debt as income to the person who is forgiven (there are lots of details, IANATA/IANYTA, YMMV). I don't want a blindside 100k bill from my hobby site, but I sure as phuck don't want the IRS thinking I made an extra 100k of taxable income. I might be able to shame Netlify into forgetting about it, but the IRS is not usually so easy to deal with.
Oh no I just got a 1099! Ha ha. That’s a really good point.
Not a dodge, (tax) accounting doesn't work like that. You can create accounts receivable of 100k and then write them off, that leaves you in exactly the same state as if you had just not entered the whole thing into the books at all. No benefit to "writing off".
I doubt IRS would buy that BS.
They’d have to be properly resourced to identity the BS first.