Business and Tax Burden - Opinions

[papy]

@papy

pay the taxes that you owe.

But DEFINITELY take advantage of every legal and ethical means to reduce your burden.

Otherwise, you’re giving money away.

[CNBC] 17-year-old used $2,000 in savings to start an Amazon side hustle—now it brings in $34,000 a month

If you aggressively deduct everything you can, it’s a lot more than hundreds. Having a business is one of the best things you can have for tax avoidance. No reason not to use it. There’s limitations and restrictions on some deductions, but as long as you follow the rules and do things within reason you won’t have a problem. For example, “food items for the office,” has a limitation. The IRS knows that’s more or less personal use, so they only allow you to deduct half. If you work at home (your…

[CNBC] 17-year-old used $2,000 in savings to start an Amazon side hustle—now it brings in $34,000 a month

I suspect that she’s using a lot of stuff she already had, but not accounting for it as a “cost”. “I already have a computer, I don’t need to buy one” (yeah, but it’s now part of the business; that’s a cost you didn’t account for. And if it dies, you need a new one NOW). “I already have a printer”. See above. And good chance that it’s a cheapo inkjet, that cost next to nothing to buy, but a lot to use. Better off dropping a few hundred to get a good laser printer. “Mom and Dad let me use thei…

[CNBC] 17-year-old used $2,000 in savings to start an Amazon side hustle—now it brings in $34,000 a month

Heck, there are even some people who have been running businesses with a profit for years who still will say things like “not worth my time tracking mileage; it’s only a few thousand miles anyway”. Lots of people don’t realize that for most vehicles, gas cost is not even the majority of the cost of travel. Something as simple as a travel log can save hundreds at tax time, plus give a more accurate measure of your business.