The Tax Benefits of Coaches and Masterminds
Aug 05, 2022As a business owner, you know that it's important to invest in your own growth and development. Coaching, mastermind groups and networking are all great ways to do this - and they offer some amazing tax benefits too! Here are just a few of the ways you can save:
First, many masterminds charge you a membership fee. These fees are deductible business expenses since you are investing in the skills, network and education to grow your business. In addition, many masterminds include travel costs for an in-person event. These travel costs are also deductible, including airfare, bag fees, lodging, meals and transportation. Even though it can seem like these high-ticket masterminds can break the bank, what many business owners forget is that you get a "discount" of approximately 15-20% on the price because of the tax benefits.
Beyond the tax deductible expenses, you also can make connections with other business owners who can offer you assistance with a task or project that you need. Many times it is easy to barter with fellow members in these communities. If the exchange is of equal value, then you do not need to claim any business income for the transaction. This is a great way to test the waters of a new offer without claiming any income, especially if the related expenses are low.
When it comes to coaches, you can actually benefit a lot from hiring a coach. Beyond the business expense deduction for their fee, you can also claim the cost of any materials that your coach provides to you. This includes books, workbooks, audio programs and even online courses. If your coach offers you a physical product, such as an herbal supplement, you can also deduct the cost of shipping.
These deductions can really add up, so it's important to keep track of all of your expenses throughout the year. This way, come tax time, you'll be prepared with all of the documentation you need to take advantage of these great benefits. And who knows - maybe this year you can finally invest in that mastermind group or coaching program you've been wanting to join!
