Home Office Deductions
May 2013 by Mark E. BattersbyThe Internal Revenue Service recently announced (IR-2013-5) a new, simplified option for those who use a home office, which would apply to owners of home-based mining or prospecting operations and businesses.
Given the enormous expenditures that are required to bring any mining property into production, the industry can ill afford a regulatory system which, by reversing already existent approvals, can nullify the value of funds already expended.
As we have repeated quite often, rising inflation—or, more particularly, the expectation of rising inflation—has historically been perhaps the most important ingredient of all in past precious metals bull markets.
Somehow, we received the impression from these two gatherings and from other conversations that bureaucrats in general are simply not aware of how difficult it is to raise capital to finance mining operations and how important it is for newer companies to show true progress in order to receive further financing.
I must admit to taking some degree of pleasure in anticipating the excuse-making which will probably come out of the "Global Warming" camp to explain away a truly startling announcement.
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