I live next to farmers. Everything they do and own is a business expense. The business owns everything. Home, cars, utv, electric, propane, internet, new land, gas, desiel, and red desiel. They go on multiple caribbean vacations, rent out the banquet room and claim it as a business expense. Is this really what business are able to do?
In: Economics
So I just did this for my first year in business. I did just under 700k in revenue. Above the line, I had $154,000 in gross profit. After internal costs
I had 114k in profits, accrual method.
A huge chunk of that 40k was “marketing expenses” which means airfare and hotels and buying $400 and $700 dollar dinners for my friends, because they are also my colleagues and potential clients.
After we got done with the uncomingling, I thought I’d made about 92-104k actual taxable benefit.
After sending everything through the book keeper and accountant, with strict instructions to keep me above board because my wife and I are very government adjacent, and the last thing you want derailing a schedule C position in a presidential administration is some dodgy taxes, my total taxable income was about 68k.
So I definitely spent something like 150k on owner benefit and paid taxes on slightly less than half. We own a home and have daycare and health expenses too that knocked it down.
But yeah – sure shitting those LLC businesses are knocking back crazy benefits.
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