Los Angeles Legendary Sleuth
Chapter 920 - 423: A Chance Encounter (Double-Length Chapter)
The detective needs to go out for investigations and meet clients, so they can buy a car, and also rent a house as the office for the Detective Agency.
These expenses can be written into the company's accounts to deduct costs."
Luke thought for a moment, "So, this means all these expenses can be deducted from the income, and only the remaining part is taxable."
"Exactly."
"Does this count as tax evasion, and will it catch the IRS's attention?"
"Don't worry, these affect the company's public image and social interactions, which are closely related to the company's development." Li Zhaofeng explained, "From 2013, Zuckerberg has been paying himself a one-dollar salary, yet in 2019, his expenses for private jet and security reached 23.4 million US Dollars.
When Trump was audited for taxes, the report showed his annual hairstyling costs were 70,000 US Dollars.
And many celebrities and entertainers open their studios; those clothes, bags, luxury cars, and watches are all expensive, but fall under business expenses, which can be deducted from the company costs."
Luke said, "But as you mentioned, my expenses aren't high, so they don't offset much tax."
Li Zhaofeng laughed, "That's simple, just make your company operate at a loss, then no taxes are needed.
For example, your company earns one million US Dollars this year, and the company invests that million in a restaurant, which expands and opens a branch, buying a property in the process, yet by the year's end, the restaurant's profit is very low, and there are loans on the property.
The restaurant cannot pay dividends to your company, leaving the company's account temporarily 'at a loss.'
But in reality, the company has obtained shares in the restaurant and a property."
Luke laughed, "Investing in a restaurant with a Detective Agency sounds a bit odd."
"Registering a company costs 3000 US Dollars, which is negligible compared to your income. You can register an investment company, place the Detective Agency under its name, and then increase your assets in the name of the investment company, indirectly achieving tax avoidance.
Of course, what I've said is rather broad; in practice, it's more complicated and requires some costs. This is why the wealthy can avoid taxes while the middle class must pay honestly.
But for your income, these costs and efforts are worthwhile."
Though it sounds simple, executing it isn't easy. Any mistake can be caught by the IRS; you must find a professional and trustworthy person to do it.
Luke doesn't have the energy for this, so he let his father handle it.
...
The next morning, Luke slept in.
After all, there's no need to work, so no need to wake up early.
Li Zhaofeng had already gone to the accounting firm, and there was some egg fried rice left in the pot, with eggs, sausage, carrot dices, and mushrooms. It tasted nice, the kind of texture Luke liked.
After eating, Luke talked for a while on a video call with Linda.
Having not been home for so long, his mom was still thinking of him. The chubby boy had safely returned home and gone to school.
In the afternoon, Luke received an invitation from Michael Jett to visit Amir Khan and Mo Shaohong at the hospital.
Both of them were staying in the same hospital.
In room 407.
Amir Khan was half lying on the hospital bed, beside him sat an Indian woman, with high cheekbones, wheat-colored skin, very pretty.
The Indian woman picked up an apple and started peeling it while expressing concern, "Amir, do you feel any better?"
"Sally, seeing you makes me feel much better. Thank you for coming to see me."
"How did you get injured?"
"I was injured during the capture of a fugitive; that suspect was a black market boxing champion and had quite a few lives on his hands."
"Black market boxing champion? Like in the movies?" Sally showed a curious expression, "The situation must have been very dangerous, right?"
"Yes, he was a very brutal guy, his eyes were like a hungry wolf's, I knew he was dangerous, but I couldn't let him get away.
If he got away, he would harm more people.
More victims would lose their families, husbands, sons...
So, I had to capture him."
"Wow, Amir, I'm proud of you." Sally handed over the peeled apple,
"Here you go, my hero."
"Thank you, it's so nice to have you by my side." Amir took a bite of the apple, his face radiating a smile like he had just tasted honey.
"Knock knock."
A knock sounded at the door.
"Come in."
As soon as the words were spoken, Luke and Michael Jett pushed the door open and entered.
"Hey, man, how's the recovery going?" Michael Jett greeted upon entering the ward.
Amir Khan said, "Michael, Consultant Li, I thought I'd only see you guys when I'm discharged."
"Don't think of us as so heartless." Michael Jett looked at Sally beside them, "Who is this beauty? Your sister?"
"No, Sally is my good friend and college classmate."
"Hi, beauty, nice to meet you, I'm Michael Jett, Amir Khan's team leader, you can just call me Michael."
"Hello, Michael."
Luke also introduced himself, "Luke Lee."
Sally nodded in acknowledgement.
Luke looked at Amir Khan on the bed, "Amir, I heard you broke a rib."
"Yes, right here." Amir Khan pointed at his chest, "How about that guy? Didn't shoot him dead, did I?"