April 2021 Income At-A-Glance
Gross Income for April: $166,142
Total Expenses for April: $48,102
Total Net Profit for April: $118,040
Difference b/t Apr & Mar: -$74,807
% of net profit to overall gross revenue: 71%
Why We Publish An Income Report
This monthly income report is created for you, Fire Nation!
By documenting the struggles we encounter and the successes we celebrate as entrepreneurs every single month, we’re able to provide you with support – and a single resource – where we share what’s working, what’s not, and what’s possible.
There’s a lot of hard work that goes into learning and growing as an entrepreneur, especially when you’re just starting out. The most important part of the equation is that you’re able to pass on what you learn to others through teaching, which is what we aim to do here.
**We’ll receive a commission on the affiliate links below. If you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Josh Bauerle’s Monthly Tax Tip
What’s up Fire Nation, my name is Josh Bauerle. I’m a CPA and the Founder of CPA On Fire, where we specialize in working with entrepreneurs to minimize their tax liability while keeping them in line with the ever-changing tax laws.
I’ve been working with JLD & Kate at Entrepreneurs On Fire for years now, and they’ve included me in these monthly income reports with unlimited access to all their accounts so I can verify that what they report here is complete and accurate.
And because they believe in delivering an insane amount of value to you, my job doesn’t stop at the verification level; I also provide a new tax and accounting tip every month!
Josh’s March Tax Tip: Your Tax Questions Answered!
In Part II of our Fire Nation question and answer session we have three more great questions to answer!
If you want to be featured in a future Income Report tax tip, be sure to get those questions in! You can send them to [email protected]
First question is from Sandy, and she wants to know if she has customers and contractors all over the world, should she find an accountant that specializes in that (are there accountants that specialize in that?) or is it better to find someone who serves her local community?
With so much of entrepreneurship being done virtually and all over the world, this is a great question. And it has a surprisingly simple answer. Your taxes aren’t based on where your customers are, they are based on where your business is.
So if you are based in California and sell your digital course to a person in Australia, you have no need to worry about Australian taxes. You only have tax obligations to the US and the state of California.
Unless you are actually located in another country there should be no need to hire an international accountant.
As for whether you should hire a local tax professional, I would be more focused on hiring one that knows your industry. The state tax laws are mostly straight forward, so I think you will get much more benefit having someone who knows your specific industry inside and out.
Next, Jason wants to know if he can donate his income producing properties (I assume he’s talking about buying and holding rental properties here) to his foundation without having to pay capital gains or depreciation recapture taxes.
When it comes to charitable donations, the first thing to always keep in mind is that it has to be an IRS approved non-profit organization in order to be tax deductible. So as long as Jason’s foundation is an official not for profit, he can deduct the donation.
But donating appreciating property, such as real estate, offers a unique donation in that you will get the fair market value of the property as a deduction.
So if Jason bought a property for $100,000 and it’s now worth $500,000, he will potentially get to deduct the full $500,000 while also not paying any capital gains or depreciation recapture taxes that he would have paid if he sold the property.
However, I use the word potentially because there are income limits on any donation. Most donations are limited by 50 percent of your adjusted gross income, but some donated assets (such as real estate) and donations to some organizations are limited to 30 percent of AGI.
So while you will certainly avoid taxes on the property and you will get a deduction, how much you can deduct that year has a lot of “it depends”, and it’s well worth discussing with your tax professional before moving forward.
Finally, Carsales wants to know if you purchase a revenue producing website for less than $10,000 can you expense the full cost that year, or does it need to be amortized/depreciated over multiple years.
This is another really tough one to answer without the specifics of each unique situation!
Typically, purchasing any kind of asset results in the cost being either amortized or depreciated over multiple years. And how many years depends on what type of asset you are purchasing.
However, there are some scenarios where the entire cost can be deducted in the year you bought the asset.
It also depends on how the sale itself is structured. So unfortunately, I have to revert back to the old CPA fall back of “it depends”.
You will definitely want to talk with your tax professional before making a purchase like this to make sure you are doing it in the most tax efficient way possible.
As always, please feel free to contact me if you’d like to discuss what would be best for YOUR business. I LOVE chatting with Fire Nation!
What Went Down In April
Tony Robbins Mastermind in Florida
In our March income report we focused solely on the book launch, but with a few days still left in March, the month had more in store for us…
The day after The Common Path to Uncommon Success launched John and I hopped on a plane to Florida to attend a 3-day Mastermind with Tony Robbins, which we secured our spot at for coming in top 10 for the Knowledge Broker Blueprint launch in early 2020.
We arrived on Thursday evening and dove straight in with a welcome dinner hosted outdoors right on the beach.
We knew several faces from the previous mastermind, hosted at Tony’s resort Namale in Fiji in 2019, but there were a few in attendance we hadn’t met in person yet. This dinner was a great way to get to know everyone before the weekend kicked off.
Friday we headed to Tony’s studio in Florida and spent nearly 5 hours absorbing so much value! Tony was truly on fire, dropping value bombs on several topics in response to the questions and struggles each attendee shared.
A few nuggets he shared that stood out to me included:
- A concentration of power = mastery
- You will become great at what you obsess over
- Constantly reprioritize what’s important to you
- Do what serves whether it serves you or not
- There is no supplement to going all in
We don’t take lightly the opportunity to shake hands with Tony Robbins, let alone spend 5 hours learning from him and the other rockstars in the room.
Our trip to Florida for the mastermind was overall, unforgettable.
The Calm After the Storm
John returned home to Puerto Rico post-mastermind, and I made my way across the country to San Diego to visit family. The next 3 weeks were the calm after the storm for both of us!
If you’ve been following our journey throughout the book launch, then you know how much time, energy, and effort went into it. The interviews, the pre-launch, the marketing, the bulk buys, the bonuses, the multiple emails and lives – we certainly gave it our all.
So post-launch, I think our entire team was ready to take a step back and just breathe.
In our massive recap post we share all the details and a behind-the-scenes look at the launch, from signed contract to The Common Path to Uncommon Success on the bookshelves!
Product/Service Income: $141,263
TOTAL Journal sales: 69 Journal Trios (Bonus) + 325 Journals Sold for a total of 532 Journals: $9,838
The Freedom Journal: Accomplish your #1 goal in 100 days!
- Total: $3,589 (136 Freedom Journals sold)
The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!
- Total: $2,451 (67 Mastery Journals sold)
The Podcast Journal: Idea to Launch in 50 Days!
- Total: $3,798 (122 Podcast Journals sold)
Podcasters’ Paradise: The #1 Podcasting community in the world!
- Recurring: $16,622 (130 recurring)
- New members: $6,149 (17 new members)
- Total: $22,771
Real Revenue: Turn your BIG IDEA into Real Revenue
- Total: $750
Podcast Sponsorships: $107,740
Free Courses that contribute to the above revenue:
Your Big Idea: Discover your big idea in under an hour!
Free Podcast Course: Create and launch your own podcast!
Funnel On Fire: Create a funnel that converts!
Affiliate Income: $24,879
*Affiliate links below – if you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.
Resources for Entrepreneurs: $13,455
- Audible: $89
- Bluehost: $256
- Click Funnels: $10,160
- Coaching referrals: $2,950 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)
Courses for Entrepreneurs: $10,609
- Crush it With Challenges by Pedro Ado: $10,609
Resources for Podcasters: $449
- Podcasting Press: $15
- Splasheo: $74
- Libsyn: $353 (Use promo code FIRE for the rest of this month & next free!)
- UDemy Podcasting Course: $7
Other Resources: $366
- Amazon Associates: $106
- Other: $260
Total Gross Income in April: $166,142
Business Expenses: $45,963
- Advertising: $44
- Affiliate Commissions (Paradise): $1,111
- Accounting: $0
- Cost of goods sold (Journals): $3,557
- Cost of goods sold (bulk buy fulfillment): $23,500
- Consulting: $282
- Fulfillment: $6,403
- Design & Branding: $0
- Dues & Subscriptions: $0
- Education: $313
- Legal & Professional: $0
- Meals & Entertainment: $314
- Merchant / bank fees: $2,056
- Amazon fees: $3,256
- PayPal fees: $710
- Shopify: $19
- Office expenses: $281
- Community Refunds: $0
- Promotional: $0
- Travel: $0
- Virtual Assistant Fees: $3,800
- Website Fees: $317
Recurring, Subscription-based Expenses: $2,139
- Adobe Creative Cloud: $100
- Boomerang: $50 (team package)
- Authorize.net: $70
- Bonjoro: $45
- Cell Phone: $187
- Dochub: $60 (annual subscription)
- Google Suite: $34
- Internet: $59
- eVoice: $10
- Infusionsoft CRM: $241
- Insurance: $89
- Libsyn: $153
- Linktree: $6
- TaxJar: $49
- Sellozo: $149
- Streamyard: $49
- Taxes & Licenses: $523
- Zoom: $205
- Xero: $60
Total Expenses in April: $48,102
Payroll to John & Kate: $15,900
Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)
Total Net Profit for April 2021: $118,040
Biggest Lesson Learned
Play at the Highest Level of Fulfillment
Another nugget from the Tony Robbins mastermind was his certainty that the game of life should be played at the highest level of fulfillment.
It’s easy to hear things and say or think to yourself, “YES! I completely agree!”, but it’s not so easy to actually LIVE those things. To implement those things. To take action on those things.
Every day life and “stuff” can easily get in the way, and before we know it, another year has gone by – and we find ourselves in the same exact situation.
Oftentimes, that situation isn’t one we’re excited about. It’s not the situation we envision for ourselves, or for our family.
This nugget from Tony reminded me of how critical it is to own your own future, and to own your actions (which are what actively create your future). Reminding yourself that what you’re working on right now is directly tied to what you’re creating in your life is a powerful reminder. And if we can continue to bring this thought to the forefront, I believe we can cut the excess, busy tasks and projects that aren’t truly important to us and start focusing on the things that bring us true joy. The things that will bring us one step closer to our biggest goals.
Try it today. Every time you work on something, ask yourself “Is this what I want to be creating in my life?”
If it’s not, delete it – or at the very least move it to the back burner for future consideration.
Start spending your time ONLY on what’s most important to you. If you play at the highest level of fulfillment, then you cannot lose.
Alright Fire Nation, that’s a wrap!
Until next month, keep your FIRE burning!
~ Kate & John
Note: we report our income figures as accurately as possible, but in using reports from a combo of Infusionsoft & Xero to track our product and total income / expenses, they suggest the possibility of a 3 – 5% margin of error.