As James A. Michener says, “The master in the art of living makes little distinction between his work and his play, his labor and his leisure, his mind and his body, his information and his recreation, his love and his religion. He hardly knows which is which. He simply pursues his vision of excellence at whatever he does, leaving others to decide whether he is working or playing. To him he’s always doing both.” So what if you could design a life where your business and personal lives were intertwined in such a manner that you could maximize your tax write-offs and have fun?
The IRS Tax Code is certainly something that remains mysterious to the average person. But hidden deep within the tax code is the play book that the wealthy and sophisticated people use to live life to the fullest and minimize their tax liability to the maximum extent allowed. So what if you could create a life where you could take a vacation and combine it with business so that you can not only enjoy your time away from home, but also enjoy some sax benefits?
Let’s say your starting point is that you currently do not own a business. One way to get past this is to turn yourself into a business. Yes, you heard this right. Start to brand and market yourself as a professional in something. Another option is to turn a hobby into a business venture. Here are some guidelines for making this happen:
- Create a plan
- Get your first sale
- Maximize your time
- Build an online presence
- Build your network
- Treat this venture like a job
If you already have a business then you are already off to a great start. Now you need to figure out how to plan a rip whose primary purpose is for business. This shouldn’t be too hard, especially if you are going out and having meetings and building your network. Some expenses that may be able to receive a potential tax benefit would be transportation and travel.
One little piece of tax trivia worth noting regarding running a business is that certain business and net operating losses can be deducted. A qualified tax professional can help you to calculate any applicable net operating loss, and also to determine potentially how you can carry the loss back or carry the loss forward.
Still trying to figure out how to start a business? No need to worry. The book Never Eat Alone by Keith Ferrazzi is a great starting point for learning some great ideas on how to build a network and how to build a business by building a network. This goes directly in hand with you branding yourself as a professional in your field. Some key lessons of this book are that Relationships don’t disappear like cake but rather they grow like muscles. Additionally, you should start building your network now so that you will already have a foundation for when you really need it most.
Whether you currently have a business or not, you are only a few tweaks away from being able to create a business that can allow you to enjoy the financial and tax benefits that have been known to the elite for a century!