For you NCIS fans, we all know Gibbs has his rules. Well I have my fairy tales. Now I didn’t adopt these fairy tales because Gibbs is an old Michigan guy or that I went to the same school with his wife Pam Dawber.
No these fairy tales are so universal at times they get under my skin.
If you are a business owner, I’m sure someone has told you this tale. Brand spanking new owners are bombarded with this. Heck, these were the first words my Dad had for me when I went into business.
Dear old Dad said, (God bless him), now that you are in business you can get season tickets for the Detroit Red Wings, Lions, Tigers, Pistons. You can join a country club, take me golfing everyday, get season tickets at Pine Knob, The Fischer theatre, and take me to the Masters (golf) and write it off !
Well gang with the complicated IRS tax code, I indeed might be able to write off part of all that, but not automatically by any means.
Let’s add to everything above and have all are buddies remind us that all our meals and drinks are deductible too. We’ll never pay for a drink or meal again!
Heck, you can write it off so you can pay for everything and we’ll never pay for a meal or drink again !
This is cool!
I’m glad you went in business !
Fairy Tale #1–it don’t work this way.
Thanks Hollywood for creating this fantasy !
Unsophisticated new owners, people with just no clue (should not be in business) and a handful of “watch me go out of business quick” owners feel this way.
In my Flex Your Financial Muscle workshops, we blow this fairy tale up real quick.
Entertainment and meals have tough rules under the tax laws.
It’s not the Wild , Wild West it once was.
Maybe, fifty percent can be deducted.
What Dad and many business owners miss is-FIRST YOU HAVE TO MAKE THE MONEY, before you can spend it or deduct it !
Making the money requires work !
Most ways of making money also require some expenses to leave SOME profit for the fancy stuff above.
Today’s lesson can go on but for today I just want to cover fairy Tale Number One-You Can’t Write Off A Damn Thing Until You Make Money First !
Watch your TV watching buddies who want you to buy them season tickets to use, get a new boat,and buy who knows what.
Watch your family who wants you to pick up every tab every time you go out.
Pull a Gibbs-smack ’em on the back of the head when they pull this crap !