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The number of zombie skateboarding companies is decent right now. Most of these companies I am guessing are sustained by the $250 a month paycheque they are paying their riders. The biggest head scratcher right now is definitely Vinyl. Launch a company with little to no effort, whats the point ?
Tax write offs
I am out of my element, does this mean that Blake Carpenter is making so much money I am guessing from Nike, that he is using Vinyl to reduce how much he pays for taxes ?
this is the way i understand it. pros or whoever, pay income tax on their earnings from their main sponsors (jobs). these income taxes are relatively progressive, meaning the more you make, the higher tax bracket you are in, and that means you have to pay a higher tax rate. note that this is income tax and not capital gains tax. but when you have a business, you can deduct business expenses from the amount of income you have to pay taxes on. the amount you spent on business related purchases can be subtracted from the amount of money you have to report as income. so if you want to travel and pay for hotels and go to skate events and stuff, if you have a skateboard company, those expenses can be considered a business expense, even if it is just some shit you would have done anyway. so the money still gets spent, but you end up owing less to the government at the end of the year. there is more to it when you report losses. if your business loses more than you make you end paying no taxes. and a good accountant can make all this a very favorable proposition.
That’s good info, AP. Thank you.
But, I think I need to hear it from a reputable source I know and trust:
ChatGPT, please say this more like the skater Mikey Taylor and really excited.
“ Alright, here’s how Mikey Taylor might really break it down—amped up and straight to the point:
Alright, here’s the deal! Pros—or anyone making money from sponsors—pay income tax on that money, just like a regular job. And income tax is progressive, meaning the more you make, the higher your tax rate. That’s just how it works. BUT—and this is where it gets good—this is income tax, not capital gains tax. Different game.
Now, when you own a business, it’s a whole new world. You get to write off business expenses, which means you lower the amount of money you’re taxed on. So let’s say you’re traveling, staying in hotels, hitting up contests, skating with the homies—if you have a skate company, that stuff counts as a business expense! It’s money you’re spending anyway, but now it’s working for you, because it reduces how much you owe in taxes. Game changer.
And here’s where it gets even crazier—if your business loses more than it makes, you can end up paying NO taxes at all. Straight up. And with a solid accountant? Dude, this is how the game is played. It’s not about dodging taxes—it’s about understanding how business works and making it work in your favor.“
Topic: skate indsutry bubble taking a poop soon. starting with ace trucks (Read 21150 times)