An ICI/PRO member just sent me a request for a copy of her ICI/PRO annual membership for her taxes. If you can't locate your receipt email my assistant rob@indoorcycleinstructor.com and he will resend it to you.
That triggered me to write this post as a reminder to everyone that your ICI/PRO subscription maybe a deductible education expense. I'm not a tax expert so you will need to check with some Tax Professional that understands what is and isn't allowable where you live and teach.
If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses is greater than 2% of your adjusted gross income. An itemized deduction may reduce the amount of your income subject to tax. Note: If you were to incorporate your fitness business you maybe able to deduct all of this amount in the USA – John
If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. This may reduce the amount of your income subject to both income tax and self-employment tax.
Your work-related education expenses may also qualify you for other tax benefits, such as the tuition and fees deduction and the Hope and lifetime learning credits. You may qualify for these other benefits even if you do not meet the requirements listed above.
To claim a business deduction for work-related education, you must:
Be working.
Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee.
File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed.
Have expenses for education that meet the requirements discussed under
Qualifying Work-Related Education
You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests:
The education is required by your employer or the law to keep your present salary, status or job. The required education must serve a bona fide business purpose of your employer.
The education maintains or improves skills needed in your present work.
However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:
Is needed to meet the minimum educational requirements of your present trade or business or
Is part of a program of study that will qualify you for a new trade or business.
That raises another question; would it make sense to find an expert who can help us decide if incorporating your fitness business would help you save money on future taxes? I know for me and Amy, once we formed Deep Breath In, LLC we were able to deduct many more of our expenses as they were no longer subject to the 2% threshold of our adjusted gross income.
While I was in Boston last week meeting with Tom Scotto, Bill Pryor and Kenji Freedman, Gene Nacey was at this years IHRSA in California. It's the largest fitness equipment show in the USA and Gene was there checking out all the new Indoor Cycling bikes (or should I say cycles) that offer Power. Take a look at his video report.
Bill Pryor and I want to introduce you to CyclingStudio.Org, the very first resource and community dedicated exclusively to the Owners and Managers of Spinning® – Indoor Cycling Studios located around the world!
Welcome to CyclingStudio.Org The mission is simple: A place where cycling studio owners and those passionate about this business can learn, share, and network. A place specifically designed to help you grow your business.
Listen to the Podcast below or subscribe for free using
I met PRO Member Russell Carter at this year's conference as he was getting to open his new Body Cycle Studio – Indoor Cycling Studio in Philadelphia PA. He had been working with Bill Pryor on the business planning and was at the conference to brush up on his teaching skills in preparation for his new studio.
This is a great example of how you can convert a relatively small, downtown space into a beautiful studio. Follow the link to see the pictures of the studio.
Click image to join our Facebook Group – everyone encouraged to join!
Part 1: Are you an entrepreneur?
If it’s done right, a cycling studio can be a profitable and enormously rewarding way to spend your time. After all, what could be better than treating friends and neighbors to a workout that is helping them live a happier and healthier life?
Free Registration Required to continue — Click Here. Opens in a new tab.
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Let’s assume (since you are reading this), that you are a great instructor, or at least a great class participant who can recognize and perhaps even create an amazing SPIN® or indoor cycling class. OK, that’s part one. Do you also have world class people skills? Do you like working weekends and holidays? Can you learn to read and create a basic spreadsheet? Can you be nice and smile to people…..even if they are well, jerks? Are you willing to use a pedal wrench and (god forbid) a mop? Are you a never-say-die optimist?
If you are a great instructor, but said no to any of the above, you may want to stick with teaching that amazing class at local health club. If doing all that and building a community of riders sounds like a dream come true —– you may have what it takes!
Where do you start? You gotta have a business plan. I know the business sounds simple, but if you plan on investing a big chunk of your own, or someone else’s money, you should have something in place that outlines financial, operating, marketing and other factors…..in detail. Just the plan development itself will help you assess the fit with your own skills and personality.
In helping dozens of studio-starters create plans, we have noticed a few common themes: First there is a tendency to over-estimate how rapidly you can expect the customer base to grow. You will not open on day 1 with 30 classes / 30 bikes and 70% occupancy. Won’t happen. Second, there is a tendency to under-estimate expenses. Most business plans we produce have over 35 expense lines. Many are small, but they add up. Best to plan for that and understand how you'll collect class payments online.
That being said, with smart, realistic planning, and with crisp execution — wow, you build something amazing……while making the world a healthier place, one rider at time.
I love it when new SPINNING Indoor Cycling studios open up and I do my best to promote them.
Body Cycle Studio is coming to Philadelphia Next Month in early November.
I talked with ICI/PRO Member (and the owner of Body Cycle Studio) Russell Carter today. He told me his Spinner NXT's are due to appear any day and then he can start offering quality Indoor Cycling classes in his new studio in down town Philly.
I say ” anything to help burn off those wonderful cheese steak sandwiches is a good thing!”
Here is the link to contact Russell if you are close by his Spinning Studio and want to take a class.
