europa03
At what point does the IRS decide if a corporation is in business soley to reduce taxes of another business? For example, lets say I soley own a business that brings in a pretty penny, so I setup another company that is paid a pretty penny in rent and at the end of the year, I use all the legitament expense I can to reduce that income on the second company thereby reducing my first companys income?
I am told that if the second company is actually doing something, then it is legitiment. My concern is that I would be owning both companies soley....doesn't that look back or would this hold up in court?
Dan
I am told that if the second company is actually doing something, then it is legitiment. My concern is that I would be owning both companies soley....doesn't that look back or would this hold up in court?
Dan