Benefits of online e-commerce – Tax benefits for online coaches
This article concludes our e-commerce sequence and what a way to end this spine-tingling series! The series first introduced e-commerce at large, and its benefits. What followed were the tax benefits of e-commerce business and the benefits of e-coaching or online coaching business. Our focus now is on tax benefits for online coaches, which have a great similarity with online e-commerce. However, zeroing in on online coaches helps us to assist several entrepreneurs providing lessons online on various subjects. They, too, must pay taxes and certainly need the help of a tax professional to navigate taxes, save money and grow their businesses seamlessly.
Just to refresh your mind: Online coaching is the act of providing lessons (in any category) through an online platform. More so, we mentioned how this involves several platforms utilizing internet connection. When coaching people online, there is no need for face-to-face meetings. And this comes with several tax benefits, as we shall see below.
What is a tax benefit?
In simple terms, a tax benefit is a type of savings for a taxpayer. It has the effect of reducing a taxpayer’s monetary burdens. And, if tax benefits are utilized over time, running into years, they can help a taxpayer invest in his/her future.
What are tax benefits for online coaches?
Online coaching is similar to e-commerce business in the sense that coaches accept online payments through various means. As such, most, if not all of their tax benefits are similar. In other words, if you invest in your online video coaching business, expect tax benefits similar to someone running an online e-commerce shop.
These benefits include home office deductions like a percentage of your mortgage, property taxes, insurance, utilities, or household maintenance expenses. Other tax benefits include deductions for advertising expenses, insurance costs, and continuing education costs.
But what are the tax benefits specific to online coaches?
An online coach requires quality video and audio equipment. The costs of acquiring those are all deductible.
More so, when running a fitness coaching business online, you will need exercising equipment. I know a friend who attends online Yoga classes. Her coach has her own Yoga mats, some small weights, and a nice radio by the corner. The costs to acquire all these things are deductible. As for guys in weight-lifting coaching, their equipment can be hectic and costs more to acquire. The good news is that it is all deductible.
Now, are you ready to enjoy the above tax deductions?
Preparedness is an essential determinant of whether you enjoy the above-mentioned tax benefits or not. In my work as a tax professional, I discovered that many people’s tax profiles were altered because of the pandemic. And when these changes came, many were not ready to change their tax returns accordingly. And that could spell some trouble for some of you. For example, if you were working as a gym instructor and suddenly your gym closed. Transitioning from being jobless to your own online gym-coaching website moved you from being an employee to self-employed.
So, if you were not prepared to also change how you file your tax returns, you could be in trouble. You won’t even know where to start to enjoy all the above tax benefits of an online caching business.
You could be wondering, what is my best chance? Well, your best chance, given the above, is to hire an experienced tax professional. If you need one, you can contact my office or leave an email to that effect. I will gladly come back to you and help you pay taxes rightfully and save money while doing so. Remember, you cannot enjoy what you did not prepare for. To be prepared is your only chance to build generational wealth.
Not yet an online coach? This is for you
Seeing the above tax benefits is, indeed, enticing. And many of you who are not yet in the business are wondering how or what they can do to take part. Well, here are a few pointers. In case you want to become an online coach, you can pick any of the following niches and teach people about it for a fee; business, fitness, weight management and diet, mental health and wellness, real estate investment, and taxes and financial management. These are the main niches that people pick out, find out what you are strong at and pursue that. Otherwise, don’t forget to hit us up for further information if need be. Call or message our office.
People have also asked the following
1. What Is an Online Coach?
An online coach uses the internet and a computer, tablet, or smartphone to deliver lessons or tips that people can use to better a part of their lives. For example, a sister who teaches people how to burn calories at home is an online fitness coach.
2. How do online coaches work?
Online coaches need an internet connection, audio, and video equipment, and a laptop or computer to upload their video lessons online. Sometimes they carry out their lessons live, which requires either a smartphone or computer, aided by video and audio equipment. Clients pay for these lessons.
3. What are the benefits of online coaching?
Online coaching gives the coach access to unlimited clients than when operating from a certain building in town. More so, most, or all online coaches are their own bosses.
4. Is online coaching worth it?
Yes. It comes with several advantages for the coach and his or her clients. Clients enjoy never traveling to receive lessons while the coach also enjoys working from the comfort of their home, among several other benefits.
5. How to Start a Coaching Business, Step Zero: Become a Coach
Becoming an online coach is easy, but the important thing to remember is that you must be knowledgeable about the niche you provide coaching for. Therefore, get an education, or training in this niche. For example, if you want to teach people about starting and running a business, get a business or accounting degree before going out there to get clients. If you do it prematurely, your online coaching business could suffer a premature death.