We are all feeling the pinch of oil at the pump. It stinks and it looks like we need to live with it for a while anyhow.
Just yesterday, I ran across several blogs touting gas at $1.00 per gallon! What a great deal, but then when you get to the nuts and bolts of it it is nothing more than a slimely recruiting tactic by YTB. Buy into YTB and then deduct your mileage to your kid's soccer game and only pay out $1.00 per gallon. As with all of the tax deductions they are touting, this one too is a huge stretch!
What is more offensive is that more and more people are feeling the pinch of the economy, yet this guy is trying to sell a program that fails the majority and he is preying on what likely is one of their biggest concerns right now. And this is the guy that YTB reveres and calls Mike The Travel Guy. Does not seem like he is selling too much travel in this blog! But a similar message showed up in Regina Osei's Blog where she alludes that by joining YTB you can make the money needed to offset the price of gas. Well, I guess if you drive less than 100 miles a year it might--remember, the people that make money in YTB are very few and far between. But don't let that get in the way of recruiting and scamming someone out of their money.
Right now more than ever the price is gas is at the forefront of everyone’s mind. Right now this is what everyone is talking about and what is coming up in more conversations than anything else.
BUT, did you know that as a YTB Home Based Business Owner your gas ‘should’ be only costing you $1 per gallon?
Now before you start thinking that coach is amazing, what oil company did he cut a deal with? - let me say that no matter what home-based business you’re in you can make these gas prices work for you and EXPLODE your business like never before because all gimmicks aside, this is real, your gas only has to cost you $1 per gallon!
Here’s how it works:
1) The IRS provides a .52 cent tax (Just increased to 58.5¢ starting July 1st) write off for every mile you drive that is legitimately related to business.
2) People who do not own a business CANNOT qualify for this tax write off.
3) Everywhere you go, whether its work, church, the kid’s soccer game, or just going to the store can be a legitimate mileage tax write off if you insert business into the equation.
This is EASY to do! It can be done by leaving YTB business cards on peoples windshields, handing people YTB business cards (or Success From Home Magazines), or of course doing a presentation.
Note: You must record your business mileage in case you ever get audited and this is where it typically becomes a sticking point with most people as they do not want to take the time, can’t take the time or forget. If that’s you here’s what you need to do immediately:
Go to www.Xpenser.com (this is a FREE service) and sign up. Now you can simply call a phone number before, during or even after you’ve driven somewhere (that was business related) and leave a voice message such as ... “Soccer game handed out 3 business cards & 14 miles” and hang up.
This FREE service will convert your message to text and log our it in an online mileage log for you.
4) So here’s the $1 per gallon formula (working with round numbers)
- $4.00 Per Gallon
- 20 Miles Per Gallon
- .50 Cents Per Mile IRS Deduction
- 30% Tax Bracket
Those of you with math brains can do the calculation but the basics are a 20 miles per gallon vehicle at $4 per gallon cost .20 cents per mile to drive. .50 cents per mile IRS deduction x 30% tax bracket is .15 cents in real money you pocket at the end of the year and when you deduct .15 cents from .20 cents your at .05 cents per mile or $1 per gallon!
These are real dollars/savings and real cash in your pocket at the end of the year.
_______________________
You might be saying “Wow, this sounds great - I see it and I’m excited that my YTB business is going to help me save $3 per gallon on my fuel cost & I’m going to business wherever I go and log my miles”.
PLEASE whatever you do - don’t miss the bigger picture!
If it's not bad enough that they are screwing vedors out of thousands of dollars by introducing a program that allows consumers to rebate to themselves, now they've added the "let us show you how to lie on your taxes" as an added bonus.
ReplyDeleteNice!!
It's interesting. I see the vast majority of RTAs/REPs being unsuccessful. Is that because they might feel that hiring their kids and taking their vacations as tax deductions is slightly unethical? On the other hand, that minority that is successful seem to have an enormous sense of entitlement when it comes to the "fine line" between what's right and not so right.
ReplyDeleteIt amazes me the things I've seen them advise is tax deductible. Sometimes I honestly wish the IRS would just crack down and audit all the filings. There is just no way in hell you can HONESTLY pimp out your children to get a tax write off. Or that by going to juniors soccer game you can deduct the mileage because you handed out a business card. It's reaching, unethical and slimey.
ReplyDeleteI've been a TTA for 18 years, at least 7 of the last of those at home. I have a home office, and I do take the LEGAL deductions, but why would you push it overboard, why would you WANT to be audited. Hell I can go out and buy a large flat screen TV and write it off saying I have clients come here to watch travel videos..but that would be complete BS and in my eyes wrong. I hope they all have really good tax lawyers.
The IRS is providing information about abusive Home-Based Business schemes to help taxpayers avoid the pitfalls of these schemes:
ReplyDeleteThese schemes are abusive because they manipulate and misinterpret tax laws.
The public should not be fooled by home-based business schemes that claim taxpayers can deduct most, or all, of their personal expenses as business expenses.
Taxpayers should be wary of promoters who claim otherwise.
The IRS and other federal agencies are aggressively pursuing and successfully prosecuting promoters of schemes and scams, including abusive home-based business schemes.
Participating in these schemes can result in repayment of taxes owed with interest and penalties, and possibly imprisonment and fines.
Even innocent taxpayers involved in these schemes can face a staggering amount of back interest and penalties.
Taxpayers involved in one of these schemes should correct any improper tax return filings.
Since Doug is touting that nobody ever posts proof.
www.irs.gov/businesses/small/article/0,,id=106516,00.html
We don't need the IRS Coach told us we could do it! LOL
ReplyDeleteI have to love Douggies blog now. Rather than even be bothered with editing or not allowing a dissenting opinion, there are no more comments allowed. He was either tired of defending his position (something I bet a lot of YTBers are), was tired of having a lot of his positions disproven, or (more likely) just likes to have the "power" to control the conversation and present himself as the know all and say all authority on everything.
You can report tax abuse/fraud to the IRS. You can do it anonymously. What we all need to do is cut and paste ALL of this and send it to the IRS.
ReplyDeletehttp://www.irs.gov/individuals/article/0,,id=106778,00.html
TL said, "I can go out and buy a large flat screen TV and write it off saying I have clients come here to watch travel videos."
ReplyDeleteWith a YTB home-based business, you ask people to your home to talk business and have business parties. You do show them videos, but your t.v. has kept you informed about the events going on os now you can have intelligent conversations with your business guests. Your t.v is a necessary piece of equipment to keep you informed of events. You also have the travel channel as an educational tool for your travel business.
Your t.v.is your tool to provide knowledge so that you can talk intelligently to your clients. Without a t.v., what would you know to talk about. A t.v. is a necessary piece of equipment for your travel business and is a tax deduction.
Talk about raping people for their money....RTAs pay for each and everyone of these "trainings"...
ReplyDelete-Wednesday, July 2nd ... Reno, NV
YTB Presentation at the National Bowling Stadium
7:00 PM (Sharp)
RTAs $10 ... Guests Free
-------
- Wednesday, July 9th ... Reno, NV
YTB Presentation at the National Bowling Stadium
7:00 PM (Sharp)
RTAs $10 ... Guests Free
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- Thursday, July 10, Bremerton, WA
7:00pm - 9:00pm - YTB Presentation
Gateway Bldg. @ 2525 6th Street Bremerton, WA 98312 (corner of 6th & Montgomery)
$10 Room Fee Collected at the door for RTA's - Guests Free - Light Refreshments Served
(RTA Training @ 5:30pm to 6:30pm)
Any questions, please call Priscilla at 360-551-7165.t
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- Friday, July 11, 2008, - Port Orchard, WA
7:00pm - 9:00pm - YTB HAWAIIAN STYLE with Guest Speaker "Mike" the Travel Guy
Givens Community Center @ 1026 Sydney Road Port Orchard, WA 98366
$20 Room Fee Collected at the door for RTA's - Guest Free - LUAU FOOD SERVED,
FUN, 3 Day/2Night Giveaways, Travel Packs, Prizes and Entertainment
(No Training)
Any questions, please call Priscilla at 360-551-7165
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- July 12, 2008, Saturday - Ramada Suites Sea Tac Airport
4:00pm - 6:00pm - YTB Presentation
Ramada Suites Sea Tac Airport @ 16720 International Blvd. Sea Tac WA 98188
$10 Room Fee Collected at the door for RTA's - Guests Free - Lite Refreshments Served
(RTA Training 2pm to 4:00pm)
Any questions, please call Priscilla at 360-551-7165
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- Sunday, July 13, 2008, - Portland Airport
3:00pm - 5:00pm - YTB Presentation
La Quinta Inn & Suites Portland Airport @ 11207 Holman St. Portland, Or 97220
$10 Room Fee Collected at the door for RTA's - Guests Free - Lite Refreshments Served
(RTA Training 1pm to 3:00pm)
Any questions, please call Priscilla at 360-551-7165
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-Wednesday, July 16th ... Reno, NV
YTB Presentation at the National Bowling Stadium
7:00 PM (Sharp)
RTAs $10 ... Guests Free
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-Saturday, July 19th ... Reno ... CRTA
Grand Sierra Resort
9:00 AM to 4:00 PM
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-Wednesday, July 23rd ... Reno, NV
YTB Presentation at the National Bowling Stadium
7:00 PM (Sharp)
RTAs $10 ... Guests Free
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- Thursday, July 24th ... Las Vegas Event
Details to follow
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- Friday, July 25th ... Las Vegas Event
Details to follow
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- Saturday, July 2t5h ... Las Vegas SUPER SATURDAY
9:00 AM to 5:00 PM
Details to follow
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-Wednesday, July 30th ... Reno, NV
YTB Presentation at the National Bowling Stadium
7:00 PM (Sharp)
RTAs $10 ... Guests Free
As a former IRS investigator, I would challenge your deduction. Now if there was a separate entrance to the home office and a separate bill for the cable television and the television was located in the office and NOT used for personal purposes (Saturday morning cartoons), it woudl be deductible.
ReplyDeleteBut most people do not do that. From friends that are still with the Service, I hear they have cut back on the challenges, but to be honest, before I retired, we woudl have had a field day with this.
You are handing us the evidence we need to audit and prosecute. A simple subpoena to YTB will provide all the names and addresses we woudl need.
But as with any business or individual return, you take a shot at deducting what you feel is appropriate. If you prevail you are good to go. If not it can be costly!
Hey Retired GMan! Can you turn them in? Thanks!
ReplyDeleteSorry--not my style and as my name says, I am retired.
ReplyDeleteRod
ReplyDeleteAgain, you do not need your TV to sell travel. If you rely on the travel channel as your training, thats scary. And Gman is correct, you would have to prove that you do not use that TV for any personal use at all.
No real travel agent is going to use the travel channel, the weather channel, as a training or educational device. Thats what travel training courses and FAMs are for. Taking junior to Disney is not training, and if you read the article from the web I posted it tells you that your vacation is not writeoff if you are not working MAJORITY of the time..especially when out of the country.
I hope the IRS does read this site, because its disgusting that instead of going out and getting a real job, people are signing up with YTB for little commissions, little discounts but the TAX WRITEOFFS you all promote are the big draw. Its disturbing that none of you think its wrong. Hey I'm all for not giving uncle Sam more then he should get, but I'm not going to open myself up to an audit because of greed.
TL--well that is your perrogative and if you are happy with not taking what is RIGHTFULLY yours, so be it. When I go shopping I do not throw hundred dollar bills in the parking lot.
ReplyDeleteBy NOT taking these LEGITIMATE deductions--and they are all elgitimate---you are eswsentiallyt throwing the money away.
Gman claims he was wiht the IRS--who knows but he is retired and i know for a FACT that the rules have changed to favor businesses such as YTB in the last two years!
The TV thing is a stretch. But, like any home based deduction, if it isn't used ENTIRELY for business but was purchased for business, then go ahead and log the time for 3 months (according to my CPA) I did that when I purchased my lap top. It was intended for business use, but when my kids were on the computer at home, i used the lap top to play a few games and chat with some friends overseas. So, I didn't feel comfortable deducting the whole thing. I logged it for 3 months and determined that my lap top was used 74% of the time for business, so I deducted 74% of the expense.
ReplyDeleteThe point of the mileage....it is a great deduction. Notice in the blog the poster makes a point to say that you need to dot your Is and cross your Ts. Go somewhere and hand out business cards, give a presentation, etc. It absolutely is a valid deduction, but you better have good documentation. Now with the IRS allowing 58 cents starting July 1st it is even better.
Also, notice that the poster made a point to say that this wasn't just for YTB but for ANY HOME BUSINESS.
Why do you think the IRS even has the mileage deduction? So you can't use it?
So, what if it is the soccer field and I took my kids there. If I take my kids with me to work one day, should I not get paid?
Truth is, the tax code was written for the business owner and not the employee. Period!
Bonus! IRS Increases Mileage Rate...
ReplyDeleteNice job Doug!
You tell em Anon!
ReplyDeleteDo you have a tax deductable spell check on any of your tax deductable software?
I make a point of never booking tax deductable travel with someone who might not be able to spell Miami or Seattle as one could surely end up in the wrong place and have to buy a tax deductable trip home.
I'd bet that 99% of RTAs do not consult a tax deductable tax professional for their taxes. I'll also wager that 99% haven't got a clue about IRS standards for home based businesses and wouldn't be able to undertand it if they did.
So deduct your TV, Rod - breaking the rules are just fine for all things YTB. I am amazed that you - who probably does not spend 4 hours a week selling travel has more opportunities to deduct everything than I do with my 60+. I'll have to bring this up with my non RTA CPA next January.
Better sign up again Rod, and reap the benefits you're missing out on.
This proves the fact that recruiters are sleazy and immoral, just like YTB. Rod claims you can deduct the TV. That might be possible if you only used it as a YTB tool. If used for anything else, only a portion would qualify for the deduction. These people don't get it and the way it is now, people in this country are so brain dead that they will fall for anything.
ReplyDeleteYes I see that Doug closed all comments on his bog because he got hurt. Just as I was gaining some respect for him, poof, it all went away in an instant. He can dish it out but he can't take it. Add Mixed and Ole to the group and we now how have:
YTB and TRAVEL: Wussies Galore!
Anon--you are on the wrong blog....if you want to give Doug an attaboy comment on his blog. I hear he does not even read this one so your comment apparently falls on deaf ears.
ReplyDeleteI say good luck in deducting the mileage to the little league game as long as you slide a business card under a windshield wiper. How absurd!
I don't want to be one of those boring hosts so I use my t.v. to keep up on the latest events.
ReplyDeleteNothing worse than a travel meeting in your home and nobody has anything to talk about.
Keep in mind. YTB is also about starting a home-based business so the discussions cover more than the weather and travel channels.
Yes absurd John, that you probably, based on your comments, have lost out on thousands of legitimate deductions over the years. Sad for you.
ReplyDeleteI would say that a trip to the little league game to slide ONE business card under someone's wideshield is a bit of a strecth. But, I have arrived early to my son's soccer games and there are other parents on the sidelines just chit chatting about anything. Often travel comes up and I then present to them that they can use my website to book their travel. More often then not the conversation goes even further. If they even are thinking about booking through me then my time and efforts are an expense of my business. Since, my time is assumed, then my ability to get to that location is NOT. Therefore, an expense. I have said before I have put CPAs in this business, one of which is my father. He is actually a CFE (certified fraud examiner).
Again, the important part is that these deductions aren't automatic....you have to be pursuing income AND you better have good documentation and justification for EVERY deduction.
Even Martha knows that you can deduct the TV if used as a business tool.
You can deduction a PORTION of the TV if used a business tool. Not the whole TV. Watching the travel channel is not business. I don't care how far you stretch that one.
ReplyDeleteAs for Doug not reading this blog, thats BS, he even has a link to this blog today from his. So if he's not reading it he's one hellava mind reader.
I am going to deduct my cat because he sits on my lap while I am on line and is a stress reducer. I am also going to deduct his food, his vet bills and his toys.
ReplyDeleteThese RTas really know how to annoy everyone within four feet them don't they? A business card or flyer under my windshield will guarantee that I will never do business with that person.
ReplyDeleteFunny, Doug has a link to this topic in his latest blog post. For someone that doesn't read this blog he sure is all over it.
ReplyDeletewhy not write off the soccer uniform, new cleats, cup, socks since your going their to obviously recruit instead of concentrating on your child. It could be a soccer mom sales meeting.
ReplyDeleteThe jest and sarcasm is funny but truthfully a bit sad. Let me make it clear for you....READY.....
ReplyDeleteI am going to be building my business whether by selling travel or building a sales force. There are expenses associated with that. I could have an office with a staff and utilities and call a meeting, OR I could not have that overhead but have to have other expenses to get to a meeting. If I do that at the soccer field AND it has enhanced my business then you bet it is legitimate. PERIOD
Again, I will be the first to tell you about the TV thing, that that better be for business or you will have a tough time with the justification.
If I was in YTB could I deduct the following?
ReplyDelete1. Pedicure. I have to walk a lot to sell travel don't I? Oh and I may be able to add the poor girl who doesn't speak a lick of English who is giving me the pedicure, to my downline.
2. Birth control. Obviously being pregnant may slow me down at work, so I think that should be deductable as well.
Burritos: I can't work if my blood sugar is too low, and I dropped by biz card in the bowl on the counter, so it must be work, right?
Coffee: Being properly caffinated is an important part of my day. Can I deduct that too YTB?
Obviously, YTB is an all consuming thing. Can't I deduct everything in my life thanks to YTB?
Rod needs a TV so he won't be a boring host?
ReplyDeleteRemind me to regretfully decline any invitations to Rods house should I ever be asked.
Kate,
ReplyDeleteWell perhaps not specifically those things, and most importantly not YTB, but any business. If you are the owner operator of a business you have expenses. A pedicure doesn't help you walk. But, if the only way to talk business with the pedicurist is to get one, then that IS a necessary expense. Of course you would have to prove that there was no other way to simply talk to the pedicurist.
Birth control, not so much, but perhaps you not reproducing might save us more explanations to the ignorant.
Burrtios, yes and any meal for that matter if your meal is a business meeting. But, even as an employee, you can sometimes do that if your employer doesn't reimburse expenses.
Coffee, see the burrito explanation.
anonymous said....Even Martha knows that you can deduct the TV if used as a business tool.
ReplyDeleteNo, I said you could deduct a portion of it. It would be a very small portion if you used that TV for entertainment. If Seligman had a video out, that would be entertainment! Do you think you can deduct the cable that is attached to that TV? As soon as you use it for entertainment purposes, you could only deduct a percentage of what you use it for with YTB. Maybe .00000005%?
You idiots need to get a grip on tax deductions before you all end up in prison and we will be the ones supporting you in there. You better brush up on your skills of how to make license plates.
Off topic, but in reading this article in Travel Weekley
ReplyDeletehttp://www.travelweekly.com/Article.aspx?id=175866
It seems to me that when you are afilliated wiht the largest travel agency in China--planning a trip is a lot less of a hassle.
YTB and Shanghai Spring: A Good Mix!
I gave up Dougs blog when he canned the comments section but prior to my self induced desertion I found it amusing that every darn blog was in reaction to something started or posted here. Without this blog, Doug would have nothing to say. Go John!
ReplyDeleteHe certainly never blogs about travel. Maybe because he has nothing to say on that subject?
Mixed -Up, If you are equating Travelbound and China Travel Service with Shanghai Spring than you really don't know much about selling travel.
ReplyDeleteWhat a surprise.
Well dammitall now I need to buy a new tax deductible computer monitor because I just spit my coke all over the screen reading the Anon post about China!
ReplyDeleteKarla--I think he is saying that the TW person should have bought the China trip through YTB and not Travelbound because they are working with Shanghai. ANd if I am right....my monitor is toast!
In the immortal words of Tom COleman LOL Too Funny!
Lmao yes because Travelbound is not as reputable as some remote agency in a far away land. I wouldn't book anything with them even if the comm was 100%.
ReplyDeleteJohn call your accountant because you need a new screen, that should be fully deductible, as is that can of coke because you were reading about travel, therefore your soda which was spilt is now deductible.
TL, you said: "It amazes me the things I've seen them advise is tax deductible. Sometimes I honestly wish the IRS would just crack down and audit all the filings. There is just no way in hell you can HONESTLY pimp out your children to get a tax write off."
ReplyDeleteHere's what a YTB RTA just told me today:
Please leave any type of tax advice and legitimate tax deductions to professionals who know the tax codes. I ALWAYS stress that a certified CPA should be used and I personally don’t make claims on what I personally deduct or what percentage is deducted between personal or business use.
I will tell you this about the kids…when I took the kids with me on Freedom of the Seas a couple years ago, we waited until Brian was 3 so he could participate in the kids programs. Once on board we found that he not only needed to be 3 years of age, but fully potty trained. (He turns 5 on Wednesday) He couldn’t even be admitted into Adventure Ocean, (even with us there supervising) or swim in the pool, even with a swim diaper.
Don’t rightly know how I could have found that out without having him there at the time. Imagine if I told one of my clients, “Go ahead, all he has to be is 3!” This subject has come up several times since then and it’s a big reason why I promote Carnival now for families with young children.
Rod--next time you talk to the RTA let him know that the following ways are acceptable ways of learning about a product without shady deductions:
ReplyDelete1. Read the brochure
2. Ask your sales rep
3. Call reservations
4. Know your product
5. While on board ask a crew member
6. Ask someone who may be more familiar with the product than you
See, this is what being a TA is all about--it is not go click on my website. And you are right just telling a client 3 is fine and hoping for the best is wrong. But taking a deduction so your kid can experience it is most likely illegal.
Rod, I know you have not sold anything in YTB (I assume you have re signed up since you appear to be on a pro-YTB jag this week), but when you do finally sell something, am I to assume you will turn away the business if you personally have not experienced the product?
What if someone wants a Garden Villa on an NCL ship? Have you sailed in one of those? Or woudl you tell yoru client to wait till you sailed before selling it. If you are waiting on YTB to provide the income or a FAM on that baby--you will be waiting a LONG time!
Very good points, John.
ReplyDeleteSo Rod, is that right? You won't sell anything that you have not personally tried because you know nothing about the product?
Rod,
ReplyDeleteIf the RTA didn't know that a 3 year old was allowed to play but had to be potty trained for the pool or daycare, thats sad. Its printed in the brochure and on the site. Research!!!!!
So basically, since this is a hot topic. Would you know how many weeks pregnant a woman can be before she is denied boarding, or do you need a pregnant relative to try the cruise first?
In order to be an agent it takes experience, knowledge and research. Writing little joey off as a tax break is WRONG and unnecessary in learning about travel. Its ridiculous and when the IRS starts auditing I hope you have a better reason then "little joey wanted to see what kids krew was all about" and i needed my 3 years olds opinion. Come on!
When I get back from my cruise in July I'll have my 7 year old write a report on the ship so everyone has his POV.
Rod said his kid was 3 not potty trained and still in swim diapers. Most kids that age are trained. Some people really shouldn't reproduce. And, if you had checked the website and/or brochure they would have told you that.
ReplyDeleteGo with me here...if I am looking to sell a cruise to a women who may be pregnant, I should be able to find a hooker, knock her up, take her on a cruise while pregnant and raise the kid and deduct all of the expenses in the name of furthering my RTA business?
ReplyDeleteWow, a deduction for a hooker, a deduction for all expenses with a kid. And I got to travel like an insider to boot!
I see why YTB's travel sales are climbing. Because so many people spend so much time here TALKING ABOUT YTB! Is this an obsession or what?? YES, there are SOME people in YTB who may do things a bit unethical. Are there NO other unethical people in the travel industry. I bet not! Let's start talking about the TTAs and what their positions are about the industry they're in. Let's level the playing field.
ReplyDeleteIn My Humble Opinion....... said...
ReplyDeleteI see why YTB's travel sales are climbing.
They are? You could have fooled me once but not with the discrepancies reported in Travel Weekly. BTW, you announce on your RECRUITING site that you can make six figures yearly. Do you? Do any of your recruits? If you can prove that you or they do, I'll sign up. Your blog is just another sleazy recruiter using religion as a come-on. That's another reason we have a problem with you people. Praise the Lord and give me your money.
6 figures? Ask about a decimal point!
ReplyDelete