Is there something you do really well and you know it? Or maybe something you WANT to do really well? For me that best in the world drive has been about one thing; tax strategies for small mom and pop businesses and solopreneurs. If you’re just getting going with your career, please read through this whole article. The last few paragraphs are just for you.
But first, let me tell you what happened that prompted this rant.
The Business That’s Popular Again
The economy is down and that means that network marketing aka multi-levelmarketing (MLM) businesses are roaring back to the forefront. They always do better when the economy is down.
And the same questions are already coming up. Is it a Ponzi scheme? Can I write off my expenses? WHAT can I write off? Is it legal?
I’ve heard the same questions every 5-7 years for the entire length of my career. I’m 100% certain of my answers just because I’ve heard it so much and because this is what I do.
That’s the part I want to talk to you about at the end of this blog. But first, let’s me answer the question I got regarding a network marketing business.
One of the common rules of a network marketing business is that you have to agree to buy a certain amount of product every month. It’s called an auto ship. If you don’t do it, you can’t collect your income from selling product to others and signing others up to work under you.
Auto ship. It’s a keystone part of network marketing.
Is it deductible? Nope. In fact, you need to make sure you’re following the rules regarding hobby vs business if you want to get ANY deductions. But in no case can you deduct an auto ship, something that is required just because you need to buy product to keep some skin in the game.
But…. My neighbor’s uncle has a friend who said…
And yeah, I know that someone is going to argue with me that they heard from their neighbor’s uncle who knows someone who is big time in network marketing that they said that auto ship is a deduction.
Read this next sentence carefully.
I don’t care.
If that person can not or refuses to prepare and sign your tax return, their opinion isn’t worth squat.
It’s a bunch of noise. And you know what’s going to happen if you follow that advice?There is a chance that you may be able to sneak in under the IRS scrutiny. Waiting with sleepless nights while the statute of limitation runs, hoping you don’t get that dreaded audit notice. And maybe you won’t get caught.
But wouldn’t you rather follow the rules so you don’t have to worry about the IRS? So,you don’t have to worry about the state tax bureau? Don’t have to be afraid everytime the mail shows up? Don’t have to wonder why your tax refund is suddenly grabbed by the government and you don’t get your economic stimulus check?
Follow the rules and win.
Follow the rules and win. It’s that simple.
Listen to people who have the credentials and are willing to put those credentials on the line.
So, now I want to talk to you for a minute about being the best in the world at something.
I can talk just like this, with certainty and strength, because I know I’m right based onmy years of experience as a CPA working with the IRS and tax law.
And yeah, there’s likely to be some whack job out their who wants to take me on, but I know I am right and the law on my side.
AND why do things that are in the gray area at best when I can show how you can write things off LEGALLY so you pay less tax.
The only person who wants to argue is a person who doesn’t know how to legally use the system to pay less tax. You may have heard the old saying if all you have is a hammer everything looks like a nail. They have only got one tool and it doesn’t work.
I have lots of tools and they always work in the right circumstances.
You can have that kind of certainty in your business.
Don’t chase shiny nickels.
Become being the best in the world in something makes you feel good about helping others with it. YOU are the expert. YOU are the one they respect and listen to.
Sure, some won’t. But the ones that count will know quality and that’s what you have when you are best in the world in your own special niche.
Start a Business NOW
Want to start a business? Make it an online business. Join coaching NOW so you can take advantage of the special Sustainable Digital Empire offer. The complete Fundamental course will available for FREE to all coaching members by the end of August. Meanwhile, we’ll start the next module which focuses on building a service business.