How to Maximize Your Business Write-offs: Insights from Financial Expert Theo Kagabo
During this episode of the Law of Athlete podcast, Ced McFadden and Deonte Holden are joined by Theo Kagabo, a financial and tax expert, to discuss taxes and the benefits of writing things off. Theo shares a bit about his background, having grown up in Canada and attending school there, which has helped him become well-versed in talking to people from all walks of life. Deonte expresses his excitement to have Theo as a guest, eager to learn ways to improve his business's tax strategy.
When discussing write-offs, Theo explains the RON rule: Is it reasonable? Is it ordinary? Is it necessary? He stresses the importance of applying this rule to one's business and pursuit of income. The hosts ask about writing off their dog Qardi as a mascot, and Theo explains that documentation is crucial in proving how it was an asset to their business. He also breaks down the importance of conducting business while enjoying entertainment, like going to a club, and documenting everything for tax purposes.
The biggest takeaway from the episode comes when Theo advises investing in property as a way to generate more income, suggesting that one should buy the property in their parents' names. This way, when the parents pass on, the property can be inherited without any taxes to pay. He recommends books such as What Your Accountant Won’t Tell You, The 10X Rule, and The Richest Man in Babylon to improve one's financial knowledge.
Wrapping up the episode, Theo selects Law #4: Utilize the system, don’t let it utilize you, stating that the tax system can be beneficial if used correctly. Ced and Deonte express their gratitude to Theo and suggest a part 2 to delve deeper into the topic. Overall, the episode provides valuable insights into tax strategies and financial management.
About The PODCAST
Through the Law of Athlete Podcast, you will get a unique breakdown of the 12 Laws of Athlete. Our mission is to create a framework for success that will empower individuals beyond the game. We welcome a new, diverse group of guests each episode where athletes and industry professionals can connect with their fans and share their point-of-view, aligning their experiences and knowledge with one of our 12 Laws. You will hear from collegiate and professional athletes, business professionals, sport executives, influencers who touch the sport world and more.
