Well how long are you going to evaluate them?For the life of the product.
How will you dispose of them?It depends on the product.
What are you going to be reviewing? give some examples please.Cars, TVs, refrigerators, computers, etc. You know...stuff.
And if they are for business use not personal use, you wouln't be caught using them for personal use would you?All my use of the products is business use. It's all using the product for continuing, long-term, real-world review purposes.
As far as making a profit, now businessed are subject to a test to determine if they are a hobby or business, some people try the same thing now, and may or may not get away with it.Under the current system, I can only deduct as much as my revenues. If I have $100 in revenues, I can only deduct and save taxes on that $100. Under the FairTax, I can deduct all of my expenses regardless of my revenues.
Yours is not a new idea.....I doubt you could prove to a reasonable man that yours was a legitimate business unless after a period of time you made a profit.And the IRS spends a lot of time trying to catch those people, but the IRS is history with the FairTax. Par-tay!!
Are you going to be competing with consumer Reports? C/Net etc? Clearly this is one area that will be subject to review just like it is now...I'm not "competing" with them in the sense I would have the same revenues, but their sites are doing what I would be doing, just on a larger scale.
How many people/corporations write off questionable items now?What's questionable. I have a business and I have expenses. I don't pay taxes on the expenses. Is someone going to ask me to file some sort of profit/loss statement to get the business exemption? Sorry, I don't keep those records since the income tax went kaput.
How much money will you save compared to your time and effort and risk?What risk? And the time would only be a few hours a month. That's worth saving ~23% on my purchases.
You missed section 701, yes you may be required to file a statement to get the exemption. you can have hour hobby, but no exemption...Even without IRS businesses will have to keep records, and you will have to prove your exemption:
`(a) Hobby Activities- Neither the exemption afforded by section 102 for intermediate sales nor the credits available pursuant to section 202 or 203 shall be available for any taxable property or service purchased for use in an activity if that activity is not engaged in for-profit. `(b) Status Deemed- If the activity has received gross payments for the sale of taxable property or services that exceed the sum of-- `(1) taxable property and services purchased; `(2) wages and salary paid; and `(3) taxes (of any type) paid, in 2 or more of the most recent 3 calendar years during which it operated when the business activity shall be conclusively deemed to be engaged in for profit.
That's great Nightie ... and as several of us have pointed out to you whenever you bring up his hare-brained notion ... by all means DO SO!! there are several of us who'd be happy to bring you cigarettes, cigars, soap (sorry, razor blades not allowed - nor files) providing you pay for them of course and the prison doesn't prevent it.
That's be really a cool way to ding yourself - but then, hey, no one ever said you were too smart (well actually one guy named Looey did, but we know how that goes, eh?)
So you just have your "business" and keep losing money - hopefully not too much or you might have been better off to pay the tax in the first place and not subject yourself and your family to such hassle, expense, and embarrassment. But, hey, big guy, it's your life - waste it however you please. Just keep us all advised as to how much the fines are and how long the prison term is.
That's a really fine idea Nightie - gopherit!!
The tax lovers are coming out of the wood work to nail you for doing a legitimate tax free business...
They're starting to look more and more like the jack booted IRS thugs they claim to hate...At least now we know where all those IRS agents would be working, the (phoney) Fairtax gang will welcome them with open arms.