👊 Retail businesses to face challenges?

and tax benefits of starting a business

Morning Download from Invincible Money 

Personal finance + economics + markets

Good morning investors! It’s time to be happy. Yesterday was a very good day for the market and today’s expected to be another great day.

🇮🇳 Plus, India became the 4th country to land a vehicle on the moon! Can you name the other 3? (answers at the bottom)

Poll: Thanks to everyone who voted in yesterday’s poll. The consensus is you want to read more about what to invest in, how to earn more money and plan for retirement. We heard you and will be writing more about that.

We also dig deeper into all those topics in Morning Download Pro. Last week’s issue was about setting up a solid financial plan. You can get 30 days of Pro free below:

  • Consumers are under too much financial pressure. 😩

  • Nvidia hits a new high (again). 📈

  • Start a business to enjoy these tax deductions. 🙅‍♂️

🔈 Audio version: Apple Podcasts | Spotify 

📊 Economy and News 

Financial pressure is increasing too much, warns Macy’s

A growing number of consumers "are failing to make credit card payments," as per Macy's.


According to a rep, the company had expected delinquencies post-Covid; however, the rate has surprised the management.

“The speed at which the increase occurred for us and the broader credit card industry…was faster than planned,” Adrian Mitchell, Macy’s chief operating officer and chief financial officer, told analysts during an earnings call on Tuesday, adding that this problem “accelerated” in June and July.

The situation brought Macy's credit card revenue down by about 36% YOY, resulting in a quarterly loss. There’s fear that other retailers may also face a similar situaiton since about 183 million Americans use credit cards and total credit card debt recently hit an all-time high.

Quick hits:

📈 Stocks

S&P 500 4,436.01 (1.10%)
DJIA 34,472.98 (0.54%)
NASDAQ 15,148.06 (1.60%)
VIX 15.98 (-5.83%)
* Prices as of Aug 24th, 12:20 AM UTC

Nvidia sets the cash registers ringing

Nvidia announced its earnings yesterday reporting revenue of $13.51 billion, up 101% from a year ago and up 88% from the previous quarter.

GAAP earnings per diluted share for the quarter were $2.48, up 854% from a year ago and up 202% from the previous quarter. 🙀

The stock gained 3.17% during the day and another 8.03% after the bell to reach a new 52-week high of $509.

But wait, there’s more…Nvidia expects sales to jump 170% this quarter, driven by demand for AI chips.

All eyes will now be on today’s opening. This positive earning report is expected to send tech stocks soaring.

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🔐 Crypto

Bitcoin $26,612.10 (2.19%)
Ethereum $1,684.66 (3.98%)
Total market cap $1.06T (2.91%)
* Prices as of Aug 24th, 12:20 AM UTC

Crypto rebounds (kinda)

Prices moved slightly in the right direction as most cryptos were positive yesterday, especially BTC and ETH showing some strong gains after a rough 6 days, but BTC is still under $27K.

Here are some links that don’t suck:

💵 Personal Finance

Do this to save income tax money - Part V

We talked about ‘maximizing retirement accounts’ in the previous newsletter, today we’ll discuss another brilliant way to save income tax money – starting a new business.

Tax benefits of being self-employed

Self-employed individuals have to bear additional expenses and some of them are tax-deductible. The Tax Cuts and Jobs Act (TCJA), which became effective in 2018 tax year, hugely impacts how self-employed individuals pay taxes. Some of the points discussed in the Act are temporary and some are permanent.

One of the highlights of the Act is a Qualified Business Income (QBI) deduction for businesses that pay taxes as individuals instead of corporations. It impacts sole proprietorships, S corporations, trusts, estates, partnerships, and some LLCs, giving them the option to deduct up to 20% of their QBI. This deduction, however, is set to expire in 2025.

You’ll pay self-employed taxes

Self-employed individuals pay the Medicare (2.9%) and Social Security (12.4%) taxes, pushing the self-employed tax to 15.3%, which is equally shared by employers and employees (fully by the business if there are no employees). Moreover, the Medicare tax goes up to 3.8% for people who make above these figures:

  • Single – $200,000

  • Married filing separately – $125,000

  • Married filing jointly – $250,000

  • Qualifying widow(er) with dependent child – $200,000

  • Head of household (with qualifying person) – $200,000

(Note: these are U.S. numbers, but most countries have their own tax deductions for businesses.)

Businessowners can deduct half the amount from their net income when calculating income tax.

Deductions available to self-employed individuals

Office deduction

This expense includes money spent to operate and manage the space that you regularly and exclusively work from. Also, you may have to defend the deduction in case of an audit, which can be an issue if you have a home office.

Note: the cost of starting a business, such as market research and rent, is deductible. Similarly, interest payments (in case of a business loan) and cost of education to manage your business are also deductible.

Travel expenses

Business travel is tax deductible. However, you must keep complete records of your business travel to avoid issues. Furthermore, there are other eligibility requirements.

Note: lavish expenses are usually not covered.

Phone and internet bill

You can deduct your internet and phone expenses. Remember, if it’s a home office then you can’t deduct the entire bill as you must be able to divide it between personal and professional use.

Insurance premiums

You may have the option to deduct all your dental, health, and qualified long-term care insurance premiums if you pay for it and you aren't a part of any other program through your employer or your spouse’s employer. Furthermore, premiums paid to cover your spouse, children, and dependents can also be included.

Note: business insurance also included.


You can deduct meal expenses when you're serving clients, employees, attending meetings, or traveling for work. However, entertainment expenses are not included and you must keep receipts. Also, some exceptions are there.

Vehicle use

Vehicle expenses related to business are tax deductible, based on the mileage rate determined by the IRS. It currently stands at $0.655 per mile. Furthermore some other methods are also there.

Should you start a business to save tax money?

You do not have to start a big corporation to enjoy most of the above-mentioned perks. However, starting a business just to save tax money may not be the best option. You will have to justify these deductions, hence it’s important to only show ‘real’ expenses and to keep receipts and ledgers.

The key lies in knowing all available write-offs.

Check this video for more:

💰 Be a Better Investor

Making money is art and working is art and good business is the best art.

Andy Warhol

Moon landing answer: 5 countries have landed on the moon: United States, Soviet Union, China, Japan and India. (Source)

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