brutalhonesty

Profit is determined by expenses though.

A simple example to illustrate:

Say you had 100k revenue and 1 software developer you pay 100k per year.

Under the new law, you can only deduct 20k of the developer’s salary, so your profit is 80k, which you have to pay taxes on.

However, you have $0 in the bank because you earned 100k and paid out 100k in salary.

See how that is problematic?

wood cutting board

It really is basic math though.

A 3 point shot with 36% chance to go in (league average) = 1.08 points per attempt.

A mid-range 2 point shot with 45% chance to go in = .9 points per attempt.

The math is very basic.

Most of our clients either ended our contracts or scaled us way back. Normally we have to turn business away but now I feel fortunate to have full-time work.