This is part of why I enjoy watching a couple of RuneScape YouTubers. The sheer time commitments they put in for seemingly minor gains is like gore but for amputating off their own time effort & energy and throwing it into a bottomless maw.
https://www.youtube.com/watch?v=8hRJ-CcwvrI&list=PLtyo3aqsNv...
https://youtube.com/playlist?list=PLWiMc19-qaA3u1ZawZQIKAh0B...
The other good one from the same channel is Tileman, where he is limited to only using tiles that have been "unlocked"
His current feature is Lowlife, where if he takes a single point of damage his account gets deleted.
Very entertaining to watch and explains things so even non players can understand the sheer absurdity of some of the attempts.
Verf - https://www.youtube.com/@VerfRS
Limpwurt - https://www.youtube.com/@Limpwurt
The grind sure is relentless!
Very few things in life are as important as burritos in my view.
You know, running a business kind of like that guy who writes about inside Apple news very rarely but effectively (what’s his name, Gruber? Daring Fireball?)
The business doesn’t actually have to make money in the first few years, as long as you are making bona-fide attempts to grow it. No one requires you to watch every movie or eat every burrito. But who is the government to say you’re not trying to run a business as a food or movie critic?
Much of your personal lifestyle could then be deducted as a business expense on your schedule C, being “necessary and ordinary” for your various LLCs. Perhaps even your travel expenses if you are a travel blogger staying at hotels etc.
But maybe it’s not a joke. Any lawyers or accountants on HN see any problems with this? Again, I’m talking about doing the minimum to make this an actual business — it may become profitable through the monetization but even if it isn’t, that’s 30% additional you’re saving on what would otherwise be your personal entertainment expenses!
The main issue I see is that if your LLC has debts that it defaults on, a court might see you as “commingling” personal funds with the business, even if you keep the accounts separate, and pierce the corporate veil. But, this is a separate issue of limiting liability for debts, which your LLC doesn’t have to even take on. Even if that were the case, from a tax point of view the question is only whether the expenses are necessary for the business, and ordinary, both of which they are.
“The limit on not-for-profit losses… does not apply to corporations except S Corporations”.
It doesn’t seem to mention LLCs. These are “disregarded entities” at the IRS level, so what does that mean? For tax purposes they are treated as sole proprietorships?
It seems to me there is some “minimum” level of bona-fide for-profit business that might be helpful to reach if you are a prolific traveler or movie goer or eat out in restaurants a lot. That’s my main point. A little bit of effort and you can write off thousands of dollars a year in business expenses while you also stand a chance of making money on top of it.
Doesn't work for a lot of things (including reputable restaurant reviews) but bloggers also have the opportunity to get free stuff if they get noteworthy enough. Yes, it's a source of bias but so long as everything isn't how this thing they were given for free is fantastic, I don't have a problem with it. I've reviewed books (and a few other things) sent to me and I've given some pretty negative reviews as well as positive ones.
Entertainment expenses are no longer deductible with recent tax law changes with few exceptions. It would be difficult today to get a CPA to sign-off off on a lot of what may have passed previously. A decent write-up can be found here - https://www.thetaxadviser.com/issues/2023/nov/navigating-aro...
This seems to support what I’m suggesting
That's not how it works. You can maybe deduct the price of your movie ticket and mileage to drive to the theater. Anything beyond that and the IRS will be up your ass in an instant.
Or if you’re a travel blogger, the plane rides and hotel stays become a business expense if you’re doing it for profit as part of an LLC. You have to have an actual business plan with memberships, advertisements, etc.
You could be making money with it. But even if you aren’t yet, as long as you’re trying, the business expenses made by an LLC that you are investing into, are deductible on your personal Schedule C! Are they not?
Maybe one day, long term capital gains tax will be on the same level as income tax, and then people will stop trying to use things like 83b elections.
But regardless of that, if you invest into your own startup by buying equity or lending it money, that is NOT currently a taxable event. And then that LLC’s losses are passed through to your Schedule C.
It may be strange to have you buying shares in your company if you already have 100% of shares. But if you do a Limited Partnership with a few people, then all of you could be competing to buy shares in it and dilute the others. Those are non-taxable events. And the members of the LLC are also its staff, who go watch movies and review them. Then the tax deductions are claimed on Schedule K instead, by each partner.
I am only talking about a bona fide business. You don’t have to go all-out for each business you start, working 40 hours a week for each one. You could even go to the movies and restaurants once a week and save 30% by turning it into an actual business. Can’t you?
Do travel bloggers deduct their travel expenses as necessary and ordinary?
The only case that I am aware of where you can take business losses / write offs and apply them to other income sources is in real estate, and only under very specific circumstances. This is one reason why high income individuals love things like short term rentals which is one circumstance in which this is possible.
How does this even work?
If a local or federal government attempted to do this type of survey, they would end up having to pay McKinsey seven figures just to plan the whole operation..
I felt the same way about Eddy Burback's "I ate at every Rainforest Cafe in the Country" [and Canada]
https://youtube.com/playlist?list=PL4NL9i-Fu15jdlr2KQf_lyhXl...
I was glued to the series as it plodded on week by week and it still sticks in my mind today as simultaneously the best and worst job in the world I could imagine. Part of what made it so enthralling to read was this grand act of human perversity that a single woman would endure such a gruelling quest for such a trivial question and she made you feel that perversity along every step of the journey.
[1] https://fivethirtyeight.com/features/americas-best-burrito/