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Old 08-14-2018, 11:39 AM
 
Location: Boston
5,097 posts, read 1,453,831 times
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some people are content to be worker bees. Nothing wrong with that.
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Old 08-15-2018, 10:46 AM
 
4,317 posts, read 5,268,236 times
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I won’t say who it is because I don’t want to be mean, but someone I know who manages a bank branch has told me whenever I talk of things related to business, “Yeah but it’s all tax deductible.” She repeats this of almost anything, as if somehow spending money is totally fine if you can deduct it from your taxes. Uhhh... this is someone who works at a high level for a major bank. If I have $50,000 in profit, how does it benefit me to spend $20,000 of my profit on some unnecessary expense just to reduce my income to $30,000 let’s say?! Sure, I’ll pay less taxes - because I have less money left!!

It baffles me every time she says this because it’s always related to wasting money. It’s not like we’re talking about encouraging a new advertising initiative or spending money on growing the business. No. It’s always like client lunches, which are only 50% deductible anyway not even 100%, or some other purely wasteful use of money that has no potential to benefit the business. That’s probably among the most painful similar examples to this thread.

I think another one I encounter often is someone who turns down good paying work to sit at home doing nothing (freelancers) because one time they got paid $1,200/day by a major company. But it was literally for 3 days and it happened years ago so now they’re dead set on that being “their rate” and get completely insulted by offers like $750/day. They then bemoan that there’s no work out there that pays fairly. The other argument that drives me insane is, “Well I deserve and have to make $750/day no matter what even if it’s for 2 hours of work because I only usually get about 5 days of work per month! So that has to pay for my entire month of living.” I’m sorry but no, you’re wrong. You priced yourself high enough that you can only FIND 5 days of work at that elevated rate. I am not paying you to sit home and play video games for 25 days of the month. Get another job, work part time, or figure it out but nobody owes you money because of your personal difficulty in finding more work.
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Old 08-15-2018, 10:59 AM
 
870 posts, read 173,672 times
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Quote:
Originally Posted by beb0p View Post
The guy who rented my space to open up a restaurant was like that. He complained to me he wasn't getting enough business. So I asked him: Did you advertised? "No." He said, "If I advertise I get a flood of customers and I don't have enough staff."


Hmm........

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This is the core problem with this culture and business mentality in particular in this country. We say shoot for the stars and think big, all these silly inspirational quotes then can't back it up with actual plans to scale.
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Old 08-15-2018, 11:08 AM
 
870 posts, read 173,672 times
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Quote:
Originally Posted by JonathanLB View Post
I won’t say who it is because I don’t want to be mean, but someone I know who manages a bank branch has told me whenever I talk of things related to business, “Yeah but it’s all tax deductible.” She repeats this of almost anything, as if somehow spending money is totally fine if you can deduct it from your taxes. Uhhh... this is someone who works at a high level for a major bank. If I have $50,000 in profit, how does it benefit me to spend $20,000 of my profit on some unnecessary expense just to reduce my income to $30,000 let’s say?! Sure, I’ll pay less taxes - because I have less money left!!
Don't go on a spending spree. However, there are certain purchases you should make and declare as a business expense through a pass through Corporation entity. If you need a new MAC and it costs $5K buy it. It will reduce your taxable income by $5K which is a lot of money. This usually translates to about $1K less in taxes. So not only did you get a new computer you needed, you reduced your tax bill by $1K.
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Old 08-15-2018, 01:00 PM
 
1,461 posts, read 330,127 times
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Quote:
Originally Posted by Tencent View Post
Don't go on a spending spree. However, there are certain purchases you should make and declare as a business expense through a pass through Corporation entity. If you need a new MAC and it costs $5K buy it. It will reduce your taxable income by $5K which is a lot of money. This usually translates to about $1K less in taxes. So not only did you get a new computer you needed, you reduced your tax bill by $1K.
If you didn't need anything by the end of the tax year, then you'd probably be best off stuffing it in some tax-advantaged account. But for the love of everything holy, do NOT just turn down the money.
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Old 08-16-2018, 08:48 AM
 
4,317 posts, read 5,268,236 times
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Of course if I need something, that might apply but we are a fairly unique business in that we own absolutely nothing. It’s entirely service oriented. When I started out, I bought a lot of film equipment and I’ve used it on personal work (outside the company generally) or some corporate work. Then we expanded nationwide and we just hire contractors throughout the US. They own the gear, so we have no equipment needs. Even my editor owns his own equipment not company software or hardware. Our only way then to spend more money would really be advertising and in ten years of operation (this Sunday!) we haven’t found a single positive ROI advertising solution. Tried everything and Google AdWords came the closest but no cigar. We are still using AdWords while we adjust campaigns because it’s hard to give up advertising but it hasn’t been successful in a year. Ah well!
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Old 08-17-2018, 08:15 AM
 
195 posts, read 37,361 times
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How hard is it to complete a sample tax form with data that someone can use as a measuring stick? Sure each year government numbers are updated, and taxes are different in each State, but you should be close to the number. It can be hard to reach the tax write off minimums when you have a home that is paid off, no debt and no children.
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