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if you were to open an accounting business I would hope you would already know the answer to this question

Do you understand what it means to write something off? I am being serious, most people dont

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And when I say write something off, i mean counting this as a business expense to lower taxable income.

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yes,you would be surprised to know how many people say "oh that wont cost them anything, they can just write it off"

As George Carlin famously said, think of how stupid the average person is, then realize that half the people are stupider than that.


I know several people who think that when a business pays for something, they just "write it off." The company I work for now actually has a really well done orientation to those who have company credit cards.

Basically, my receipts will be examined thoroughly, so think twice before spending frivolously. CFO told me that when they implemented this - the next year reimbursements were down 40% despite travel being up 10%.

This depends on the type of business and what expenses you may have. It also depends on your level of honesty. Here's a little example:

Say you want to buy a golf cart and need a trailer to bring it to and from the golf course. You already have a truck that you're in the 2nd year of a 5 year loan. At this point, you don't have any way to write off any of this, so you try to figure out a way to come up with a business that would use the trailer. Maybe you can help people move, or a delivery service. Boom, the trailer is now deductible. Also, mileage on your truck is deductible. Also, a percentage of the interest on your truck loan becomes deductible. Your customers need a way to get in touch with you, so your cell phone is now deductible. Advertise on craigslist? Well then your internet service becomes deductible.

As for the honesty part, you need to estimate what percentage of the time you use those items for personal use vs. business use. If you're going to the golf course 4 or 5 times a month and only using the trailer for business purposes once a month, then you're not going to be able to write-off the full amount of the trailer.

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As George Carlin famously said, think of how stupid the average person is, then realize that half the people are stupider than that.

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And in the process he showed his own ignorance of average/mean vs. median.

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And in the process he showed his own ignorance of average/mean vs. median.

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Maybe. Or maybe he knew the joke would play better that way since the average audience member wouldn't know the difference.