'I know this is fraud': Person opens fake Instagram account for their roommate's cat to write off $8,000 in business expenses over 5 years

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  • 01
    Black business woman taking picture of her cat including 'She's never made a cent. But she's saved me around $8k in taxes.'
    via pocstock
  • 02
    in 2019 i made an instagram account for my roommate's cat as a joke. posted maybe 10 photos. got like 40 followers mostly bots. then tax season came around and i was reading about how influencers write off everything and i thought... what if.
    via kubrador
  • 03
    so i registered a sole proprietorship. II II i file a schedule C every year. i claim all the cat food, treats, toys, litter, vet visits as "content creation expenses." i write off a percentage of my rent as a "studio space." i bought a ring light. once and claimed it. i've been operating at a "loss" every year which offsets my W2 income.
    via kubrador
  • 04
    the IRS has never questioned it. i post maybe 3 times a year to keep it "active." mochi has 200 followers now. she's never made a cent. but she's saved me around $8k in taxes.
    via kubrador
  • 05
    i know this is fraud. i know "intent to profit" is supposed to be real. but mochi is sitting on my lap right now and i genuinely believe she's earned this. she's the hardest working influencer i know.
    via kubrador
  • 06
    donttouchmeah When billionaires do it, it's smart business. When the rest of us do it, it's fraud.
    via donttouchmeah
  • 07
    xj2608 Looks like my dogs are going to get IG accounts so I can write off the internet, phone, and dog food bills. One's got diabetes, I guess it's time to write off his vetsulin. Great idea, thanks!
    via xj2608
  • 08
    Woman taking picture of her white cat
  • 09
    KreatorOfReddit Careful.... If you keep posting losses and the IRS gets around to giving a shit... they'll audit it and then determine it's a hobby and not a legit business. I don't think there's a punishment, but the "write off" train will end.
    via KreatorOfReddit
  • 10
    Usually if the numbers are low enough, it's not worth their time. Try to make it work out so that you're doing just enough to make your actual tax rate be like 2-3% of your income.
    via KreatorOfReddit
  • 11
    Not a tax expert, but I operate a small side business in the entertainment world and that's what all the people I've worked with have told me.
    via KreatorOfReddit
  • 12
    Disagreed While we appreciate you being transparent and possibly helping others save a shit ton on their taxes, I think you've exposed a crazy loophole that a lot of lazier and greedier people who can't even keep up 3 posts a year or
    via Disagreed
  • 13
    claim more outrageous expenses will try to take advantage of, and will absolutely be noticed, snow balling into you being found. Delete this OP, the rich stay rich by keeping loopholes to themselves and their accountants sadly.
    via Disagreed
  • 14
    Cat sleeping on stacks of Euros 200 200 20 200 50 00 21 JUC 00 200
  • 15
    This post can be used against you even leading to prison time with the "I know this is fraud", especially if that's the actual business name you provided.
    via Disagreed
  • 16
    dragonlady_11 I think mochi definitely deserves some treats and toys, maybe a cat tree or comfy bed for her hard work.
    via dragonlady_11
  • 17
    nejnonein "Hardest working influencer I know" and "post maybe 3 times a year". Lol, sounds about right
    via nejnonein
  • 18
    Pocono Rob Change companies every 3 years and make it a different type of business. If you're selling widgets you Don't close your widget company to sell widgets again.
    via PoconoRob
  • 19
    icecream4_deadlifts Good for you friend!!
    via icecream4_deadlifts
  • 20
    Silmarlion If you actually post regularly everyday you might turn this into an actual business. Maybe try that and see what happens
    via Silmarlion
  • 21
    AllyKalamity If you get audited.....
    via AllyKalamity

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