Quote:
Originally posted by berettafan
when he works for free he has no income; there is no 'deduction' for missing income. you don't pay tax on income you don't have. furthermore if you incur expenses in your business for a job in which you end up getting stiffed on you can still deduct those expenses.
I understand it very well thank you. i only posted to correct small details in a portion of Moses' post from an accounting/tax standpoint.
Moses is being forced to donate his time. that is the $$ discussion in a nutshell. he is not losing ANY tax deductions by doing so nor is he paying tax on income he never received.
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Good point. However, medicine is also a bit different than other industries. In how many other industries does non-voluntary free work (either labor, expertise, or hard goods) play a significant role in the efforts of the industry? This is not just a free bag of chips with a lunch order--this is the whole lunch (for now and forever for this patient) for free. And it's not just here and there. It's potentially a significant portion of the population (depending on where a practice is located). And you can't forget the liability that Moses is on the hook for, should something go wrong. There's another financial aspect of the medical industry that not too many other industries face. Should a different set of rules (tax accounting in this case) be in effect?