Comment by GJim
11 hours ago
> whose failing businesses they bankroll
Don't confuse a hobby business with a failing business.
Plenty of people with independent means run loss making businesses for fun and/or support wives/children doing just that.
11 hours ago
> whose failing businesses they bankroll
Don't confuse a hobby business with a failing business.
Plenty of people with independent means run loss making businesses for fun and/or support wives/children doing just that.
Semantics. If the hobby business never makes a profit and is capturing losses for tax benefits, that’s a failing business. It can be failing indefinitely as long as there’s money to support it, but you can’t call it a successful business.
Doesn't running consistent losses eventually cause tax issues with the IRS? If the losses are offsetting profit elsewhere, I would assume the IRS would become very interested in challenging the validity of the hobby business?
You appear to be suggesting that fun hobbies which don't make money are a 'failure' rather than a success. Not everything is judged by how much money it makes.
Have you ever wondered why kids climb trees?
It's really not that deep: they're characterising the business, you're characterising the hobby. The owner having a good time doesn't make it a successful business. A failing business can be a successful hobby, sure, that's still a failing business.
You see a lot of hobby shops in ultra-wealthy areas of major metropolises. Tiny art studios, interior decorators with a handful of items in stock, boutique fashion shops.