Intro
In this episode of the Rich Habits Podcast, Austin Hankwitz discusses the essential write-offs that every side hustler and business owner must know. He shares valuable strategies for maximizing deductions and reducing tax liabilities, as well as insights into other wealth-building techniques.
Main Takeaways
Forming an LLC and Cell Phone Write-Offs
- The Rich Habits Podcast talks about forming your first LLC and the benefits that come with it.
- Three write-off strategies for new business owners and side hustlers are discussed.
- The first write-off strategy is to determine the percentage of time you use your cell phone for business and write off that percentage of your cell phone bill every month.
- The pro tip is to transfer your cell phone bill out of your personal name into the new LLC to get a far greater write-off than the expense of the business account.
- The second way to think about this is to purchase a phone exclusively for work to use it for business purposes.
- Purchasing a phone exclusively for work can save hundreds of dollars a year on taxes.
Home Office Expenses and Vehicle Write-Offs
- Deducting 10-15% of monthly rent or mortgage as a home office expense is free money.
- Measure the size of your office and divide it into the total size of your home to find the percentage to deduct.
- You can also deduct a portion of monthly utility bills, including internet, as an operating expense.
- Vehicle expenses can also be deducted as an operating expense for work purposes.
- Two ways to write off your vehicle for business: standard mileage rate or actual vehicle expense method.
- Standard mileage rate allows deduction of 65.5 cents per mile for business use.
- Actual vehicle expense method includes deduction of gas, maintenance, tires, insurance, and other expenses for business use.
- Tracking mileage and deducting 65.5 cents per mile may save more money for some people.
Investment Strategies and Financial Tips
- NEOS Investments offers ETFs for generating passive income and adding to investment portfolios.
- Managing student loans as a hurdle to building wealth.
- Dumping discretionary income on student loans to pay them off quickly.
- Biweekly payment method and principal only payment methods to pay off student loans.
- Paying Uncle Sam is crucial, missing payments or defaulting can lead to negative consequences.
- Checking investments in a Roth IRA and getting information from financial advisors is important.
- Betterment is a great option for managing investments with a low management fee.
- Transfer money straight to a new brokerage account to avoid taxable events.
- A custodial Roth IRA is a great way to set up a teenager for financial success.
- VOO is a great stock to invest in for a Roth IRA.
- High yield savings accounts and Treasury bills are other options for savings and investments.
Podcast Success and Listener Benefits
- The Rich Habits Podcast started with 200 weekly listeners from TikTok livestreams, but now has almost 20,000 weekly listeners.
- Providing value and great information is key to attracting listeners.
- The podcast has broken into the top 200 on Spotify out of over 5 million podcasts.
- Listeners who DM @AustinHankwitz on Instagram after listening to the end of the podcast can receive a free copy of Michaela Alokas’ book “Own Your Money”.
Summary
Maximizing Write-Offs and Building Wealth
In this episode of the Rich Habits Podcast, Austin Hankwitz shares valuable insights into maximizing write-offs for business owners and side hustlers. He emphasizes the importance of forming an LLC and transferring cell phone bills to the business account to benefit from greater deductions. Additionally, he discusses the various ways to write off home office expenses and vehicle-related expenses, providing strategies to save money on taxes.
Investment Strategies and Financial Tips
Hankwitz delves into investment strategies, highlighting NEOS Investments’ ETFs for generating passive income and adding to investment portfolios. He also provides guidance on managing student loans and paying off debts quickly. The importance of paying taxes on time and exploring investment options like Roth IRAs, Betterment, and high yield savings accounts is emphasized. Hankwitz concludes by discussing the benefits of a custodial Roth IRA for setting up teenagers for financial success.
Podcast Success and Listener Benefits
The Rich Habits Podcast has experienced significant growth, attracting thousands of weekly listeners. Hankwitz attributes this success to providing valuable content and information. He encourages listeners to reach out via Instagram for a chance to receive a free copy of “Own Your Money” by Michaela Alokas. The podcast’s rise to the top 200 on Spotify further demonstrates its popularity and relevance.
Conclusion
In this episode, Austin Hankwitz shares essential write-off strategies for business owners and side hustlers, empowering them to maximize deductions and reduce tax liabilities. He also provides insights into investment strategies and financial tips for building wealth. The success of the Rich Habits Podcast showcases the value it offers to listeners, making it a must-listen for those seeking financial knowledge and growth.
