So, what are the main advantages of having an RV Based Business? Well, to begin with there are the tax benefits of having a home based business while working from your RV. In order to do this, you must be active in some sort of legitimate business such as a network marketer or an Internet marketer. The best advice is to pursue your home based business in your RV with traditional types of work. By active I don’t mean full-time, as you can adjust your tax write-offs based on the time you worked in your home-based business or combination of businesses.
DISCLAIMER: I am not an attorney or accountant, so do not consider this legal advice. Before beginning your adventure on the road and working from your RV, consult an attorney and or accountant.
How can we achieve those tax benefits? Let’s say that you start a business selling goods and or services on Amazon or eBay or some other platform. This is what I do and in my travels, I’ve met a lot of people that do the same thing. Let me just tell you a bit about how I operate my business from the road. I do “retail arbitrage.” Retail arbitrage, for those of you who don’t know the term, is a simple concept and it goes like this. A retail store (such as Walmart, Target, etc.) sells a product (either online or in-store) for a certain price. I go to those stores and purchase that product and sell it for a higher price and pocket the profit. Does it work? The short answer is… YES! However, there are some secrets and tricks to being successful. I look for goods that are on sale or being closed out, thereby getting a good deal. I also do my homework by checking the products on Amazon and eBay to insure I can make a decent profit. I then buy (usually) all I have room to carry. I then list and sell them on Amazon and or eBay or some other platform. When traveling and I spot a yard sale or flea market that looks interesting, I’ll stop and check that out as well. I have found some great deals doing this and made some decent money in the process.
NOTE: The purpose of this blog post is not to go into details as to the operation of this business, but I will in a future post. Some also refer to this method as Internet Marketing.
So, as you travel around the country and stopping at various campgrounds, hand out business cards and flyers. Post your phone number on your RV and or tow vehicle so that people around you are aware that you are running a business and they can call and speak with you about it. Sell them on your business by explaining how you travel the country free or practically free by operating your business from the road.
If the RV park you’re currently in has a market day, that’s a good time to hand out business cards and promote your business. This works great for network marketers. With just a little thought, I’m sure you can think of other ways to make folks aware of your business.
As mentioned above, there are tax benefits associated with a business in your RV. What’s really important is that when it comes to claiming expenses and deductions for your mobile RV business you must record everything. The more records you have the less chance of getting in trouble with the IRS. When speaking with your attorney or accountant (as pointed out above) ask what records you should keep and what you can expect in terms of benefits. Remember that the key to being able to deduct business expenses lies in showing that you are producing an income while traveling.
There are many ways to record your expenses. You can keep a travel log or diary or log everything on your computer. Fill in your expenses every evening so you don’t lose anything to memory. Remember to include details regarding the expenses and profits. Just be sure to claim what is a legitimate expense.
What are some of the legitimate expenses that you can deduct? I run a website, so I can deduct the cost of my site, computer, phone, internet connection, and server fees. Other expenses that might be allowed are a portion of the interest of your RV payment (if you have one), travel expenses, conferences, meals and entertainment while discussing business with potential customers. Again I strongly advise you to check with your attorney, accountant or tax preparer.
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Until next time…
