From: "E. ALLEN SMITH" <EALLENSMITH@ocelot.Rutgers.EDU>
Date: Sat, 18 May 1996 04:21:38 +0800
To: unicorn@schloss.li
Subject: Re: Why does the state still stand:
Message-ID: <01I4QXLS5GQE8Y5F2B@mbcl.rutgers.edu>
MIME-Version: 1.0
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From:	IN%"unicorn@schloss.li"  "Black Unicorn" 15-MAY-1996 18:59:01.44

>For these a company running at a constant net operating loss could be
>formed to purchase cars for resale (funny how no one ever buys them) and
>manage property (which no one seems to ever lease).

	But won't such a company run into tax problems? In other words, the
IRS is going to look with some suspicion on a company that keeps showing no
profits (and thus no taxes) but keeps going anyway. They're going to think that
the owners are making a profit anyway but concealing it - which is the case.
I'm not sure how to handle this one, other than not owning major property
(rental et al).
	-Allen