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naraburns  nihil supernum  1yr ago (text post)   3002 thread views

Small-Scale Question Sunday for February 5, 2023

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

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Does anyone know of a good write-up on the “Patel motel cartel”? I saw a Charles Munger clip where he says they don’t pay income tax; are they taking advantage of loopholes or doing light cash business fraud?

From an accounting standpoint, depreciation expense would be the most likely way to offset income for an operation with multiple real properties, coupled of course with under-table cash deals and write offs of questionable "business" expenses. With an array of properties and investment backing, it's easy to grow the company, bring home plenty of dollars, and still be "zero income".

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