I think you should have an online business. In fact, I think you should have two or three of them. Here’s why.
I started my first online business 21 years ago. It’s gone through a name change, product updates and lots of website updates. But the business is still around and to this day it makes money.
I took my CPA tax service strictly online (virtual) 14 years ago. It’s still operating and still making money.
I have a lot of experience with online businesses and I like them a lot. In fact, if you don’t have one now, I think you need one right away. And if you do have one, you may want to get several of them.
An online business works because it is:
Fast to set up,
Much cheaper to start,
Easier to pivot, and
A tax-saving machine.
Here’s how an online business saved a crypto investor a whole bunch in taxes.
Crypto Investor Saves Taxes By Writing a Blog
My client, Jason, had start investing in crypto. So far, he had good results but it had taken a lot of training for him to understand how the market worked. He bought some expensive software to track numerous cryptos.
And now came the hard news.
None of it was deductible. At least so far. That’s because the crypto was an investment and since 1/1/2018 basically no investment expenses are deductible.
But we got an idea out of our consultation.
Businesses have deductions. In fact, you can easily have more deductions than income (creating a deductible loss) the first two years of your business. You may even be able to run that loss against other income for more years, but that takes a little more of a conversation to make sure it’s set up in an IRS-friendly way.
But with investment expenses, there is no way to take the deductions.
That’s when we talked about how Jason could turn his crypto expenses into a legitimate business deduction.
Some of the options
He could start a crypto mining business. Crypto mining is a business. Many of the educational, software and hardware expenses he had incurred would then be deductions. Of course, starting a crypto mining business is a commitment and Jason wasn’t that interested.
He could start a crypto educational business, teaching people about investing in crypto. Now that was something that Jason liked. And it was a business, so related investment that are also business expenses could become deductions.
An online business could be set up in a weekend. And once you prove that you are “in business” by putting up for sale, and even better actually collecting money for, courses, books, coaching, etc., you have a business.
Businesses = Tax Savings, Real Estate Investments = Tax Savings
As a CPA who has specialized in taxes for years, I can tell you there are things EVERYONE can do to pay less tax. But business owners and real estate investors will always be the big winners in the tax game.
Online business owners get write-offs faster. That’s why I’ve been pushing online businesses so much lately.
The last Sustainable Digital Empire course was 9/8/2021 as part of Wednesday Coaching. In 2-4 weeks, the entire course will be offered as a free bonus for Wednesday coaching members. FOR A LIMITED TIME. Please make sure you grab your copy when it posts. I will give you notice but it’s only going to be available on the coaching page for a short period.