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Tax lesson
Quick lesson. When you make money the govt likes to collect taxes. The govt recognizes that you may have expenses that were necessary for you to make the money. They will allow you to reduce the income you pay taxes on by the amount of your expenses. Say you collect $10k for HUAR shirts, but the shirts cost $3k, then your would pay taxes on $7k. Entertainment expenses are treated differently because eveyone cheated on them so often. Essentially you can deduct a percentage, lets say half of your entertainment expenses. If you spend $2k entertaining people who buy your shirts, your can reduce your income by $1k. Added to the $3k cost of your shirts, then your expenses would be 4k, meaning you would be taxed on $6k.
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