Uber has never once turned a profit, and is allowed to continue running their business. If you’re a small business owner running an ebay or ecom business, and you claim losses for 3 out of 5 years in a row, it’s likely that the IRS will audit you, and could deem you a hobby. Amazon is often cited as not generating a profit for many years, but is now profitable. For them, it was somehow okay to run a business making no profit! So like, how come small businesses can’t claim losses, but big corps can?

  • False@lemmy.world
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    2 months ago

    The IRS wants to encourage productive economic activity. Letting businesses deduct expenses can mean that later they end up employing people who buy stuff and themselves pay taxes.

    Also cottage industries that barely pay for themselves are very inefficient and governments usually want to discourage them so you’ll do something more economically productive with your time.