If you didn't look into it, his claim of 5000 in business expenses in the bankruptcy wouldn't go against his claims. It's the fact that even before his leaks, you could estimate how much he could be spending on his business, and how extreme the claim was.
Remember back in the mid to late 2000's how there were suddenly stories on shows like Maury or 20/20 about people who spent all their money on WOW or cam girls? Don't think we're too far from seeing the same about Twitch streamers if it hasn't already happened. Hell there is that one guy that had two(?) bankruptcies and still donates to Phil. Now you can't say Phil was the reason but the fact they still donate says a lot. Now that's a Phil example but this isn't a Phil centric issue and when someone realizes they blew all of their money watching somebody playing video games they won't feel any better just because the person was grateful for the money.
What's more unbelievable is that they're spending all their money on a streamer and that streamer is spending all his money on WWE Champions.
He'll paint it as Karma for dropping him.
Business expenses for tax purposes don't necessarily have to help improve the business expenses. But what Phil claims are business expenses probably shouldn't be business expenses. Also, while Phil is a charity case, he isn't a 501(c)3 and never will be so his wheelchairs can't itemize the massive amounts they donate to him lol
Those are actually considered income for him. Those donations are put as a debit for assets (I don't know what assets to classify them as and neither does Phil lol) and a credit for revenue. But that would be if Phil was actually honest about his tax returns (which he is not)
Is that factoring in Youtube's 30% cut of the Superchats or Paypal's 9% fees for cash xfer/withdrawals?
He also isn't socialized properly. Body language is part of non-verbal language and non-verbal language is culturally specific. An example would be the thumbs up gesture, in most of the world it's a gesture of approval, but in Greece for example when giving someone thumbs up you're telling the other person to go sit on a dick, basically telling them to go fuck themselves. You can only learn the meaning of gestures, both surface-level ones like the thumbs up gesture and subtle ones like body language, through socialization. Phil has hermetically sealed himself from the outside world for more than half a decade that's why he can't read other people's body language. Moreover, you really can't read his body language through the lens of what body language in the Western world is like, it is completely idiosyncratic to him due to lack of socialization.
Dumb people make dumb financial decisions, nothing new. Even if Dave were to get magically cured of his alcoholism and gacha addiction overnight he'd just find another money-pit, doordash being a perfect example of his absurd spending habits.
I could totally see him believing those items were donated to him personally and then "selling" them to his business. Voila, Business Expense.
See now that could almost work. I mean, the IRS is going to come down hard on him with proving out everything with receipts and stuff but theoretically it might work. You are allowed up to a $15,000 a year exemption for gifts that don't fall into gift taxes, and then he would have to sell it to his business as a related party transaction, which has funky rules. I am not particularly well versed in the sole proprietorship and related party transactions that would take place so I am not sure if there was a way to do that so I couldn't say its impossible. But I can say Phil has no fucking clue how it could be done and if there is a way, Phil wouldn't do it correctly
Phil's been like this for some time while talking about food, especially when it comes to what his family ate for dinner and such. Further credence for the Linda is living there belief. At the least, he's likely making up stories of Katherine cooking, which she's probably quit for a long time.
Better yet he could rent all that stuff to his "business" to make it a recurring monthly Business Expense.
Related party transactions are really funky rules that prevent you from doing stuff like this though. The IRS is a bunch of boring idiots, but they won't be fooled by someone like Phil
I still can't believe his, "This guy told me I don't have to pay taxes" plan didn't work.
Something something twitch are a bunch of idiots im happy to be on YouTube (insert crying about lost partnership here flailing, snorting and tposing) end with goat laugh
