Quote:
Originally Posted by Soukus
Why does the IRS care if his corporation is making a bad purchase? If he had bought the property from someone else for $500K because the corporation projected a 5 yr ROI why should the IRS care? If the company went belly-up because it blew $400K what does the IRS care? If GM loses $100 Billion in one year because it made bad decisions what does the IRS care? It didn't go in there over the last decade and say STOP - You are lossing money and we cannot allow you to do this.
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Making a bad business decision (e.g. - buying too many widgets) is one thing, but purchasing your own building for an obviously over-inflated price (to me) borders on tax fraud.