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Heard this on a Chris Potter YouTube : cash back (like from Rakuten) reduces the cost of your business inventory, which increases your taxable revenue

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Correct, if you elect to get paid in cash rather than points.

There are some CPAs I know who disagree and argue that as long as the cash from Rakuten isn’t spent on the business then it doesn’t reduce expenses.

For me personally, my CPA does not reduce my inventory expenses when I get paid in points.

(Confirmed with them last month)

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Enjoyed this post and look forward to following along with updates to this challenge. Are you going to share any of the resources or tactics related to buy groups or manufactured spend here (or in The Conference Room)?

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Definitely once I find a system I like and trust.

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Thanks for the post!

Can I ask which Schwab card are you referring to? You mention the American Express Business Platinum Schwab, but I don't see this card advertised anywhere. There is a personal Schwab card with a hefty annual fee ($695), but I don't see anything else that fits the description.

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That is the one. I realized after the fact that it is not a business card.

(Not that the distinctions matter anyway, you don’t have to have a business to get a business card)

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Got it. Thanks!

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