Every week I think it can’t get worse, and it does.
Amad the Marketer is out here telling all the innocent taxpayers on TikTok that the reason he has all his Lambos, Porsches, Range Rovers, six-figure watches, etc, is because his ACCOUNTANT (lord help me) is telling him every month he’s making too much money, so he needs to frivolously spend it on “marketing expenses” to bring his income to zero.
My good people - the use case for these things being any type of business expense are infinitely narrow - and certainly don’t apply to an “internet marketer”. Contrary to his statement, showing items in promo videos does not make them a deductible business expense.
An expense must be ordinary AND necessary to qualify, AND you must receive no personal benefit. If I were a betting person, I would bet that Amad is definitely getting personal benefits out of his luxury car and watch collections outside of his “marketing” promo videos on TikTok.
The last thing to keep in mind, is that a tax deduction is not a dollar-for-dollar reduction in taxes paid. If you spend $100 on business deductions, you’re not paying $100 less in taxes. You’ve reduced your taxable income by $100, and thus your true tax-savings is $30 (or more or less depending on your individual tax bracket). So dollar-for-dollar, you’d be better off from a cash-position just paying the tax than spending on a frivolous purchase for the “deduction”.
As I always say, don’t spend a dollar to save a quarter.
thanks for post