How much is a tax deduction worth?
 

For example.. say you could pay $10,000 with check or cashiers check, use it as a tax deduction, and get $9,000 back in cash. Worth it?

huh? i'm not clear on that

Say you buy "webhosting" for $10k, but the "webhosting" company gives you $9k back in cash, you canuse the whole $10k as a business expense.

Um.... unless the Feds find out then I think it is fraud... or at least tax evasion...

If you hide the 9k yes.. but then again that would be tax avoidence.. not saying we haven't all thought about it.. but doing that exact scenario would be a bad idea... unless of course you have 10 Pentium Xeon Dual whatsits with 50mbit connection stored somewhere ^_^

Ok, say its advertising then. The company selling the ads can put up some shit website with a banner on it.

It's more than tax avoidance (which is legal), it's tax evasion, which is illegal. Of course, you have to get audited and caught first, or the receiving party might also get audited.

Why would they do that when the $10k would be considered part of their income.. no matter that they gave you 9k back..

and if they did give you 9k back, they'd damned sure that the tax folk new about it, which would put you back to square 1.. plus prison time...

The guy obviously knows a way to get around the system and wouldnt report that he gave you $9k cash.

Which would then mean they have 10k income on their side with nothing to offset it...

Which means he has a way around the system like I just said, maybe they have a way to turn a "business expense" into cash?