In this episode, Loral breaks down how entrepreneurs legally activate the tax code through real businesses with real revenue. She explains the difference between losses on revenue versus taxes, why the IRS requires profit intent, and what causes businesses to get flagged.

Loral also shares why businesses don’t need massive profits to activate the tax code, but they do need legitimate revenue, effort, and structure. The conversation explores transitioning from “write-off businesses” into real operating companies that create tax advantages, wealth-building opportunities, and long-term financial freedom.

If you’ve ever wondered how entrepreneurs legally reduce taxes while building legitimate businesses, this episode offers practical insight into how to activate the tax code the right way.

Loral's Takeaways:

• Understanding Business Losses and Tax Implications (00:00)
• Transitioning to a Real Business and Passive Income (01:29)
• Alternative Investment Strategies and Tax Benefits (03:05)
• Scheduling and Next Steps (04:06)

Meet Loral Langemeier:

Loral Langemeier is a money expert, sought-after speaker, entrepreneurial thought leader, and best-selling author of five books.

Her goal: to change the conversations people have about money worldwide and empower people to become millionaires.

The CEO and Founder of Live Out Loud, Inc. – a multinational organization — Loral relentlessly and candidly shares her best advice without hesitation or apology. What sets her apart from other wealth experts is her innate ability to recognize and acknowledge the skills & talents of people, inspiring them to generate wealth.

She has created, nurtured, and perfected a 3-5 year strategy to make millions for the “Average Jill and Joe.” To date, she and her team have served thousands of individuals worldwide and created hundreds of millionaires through wealth-building education keynotes, workshops, products, events, programs, and coaching services.

Loral is truly dedicated to helping men and women, from all walks of life, to become millionaires AND be able to enjoy time with their families.

She is living proof that anyone can have the life of their dreams through hard work, persistence, and getting things done in the face of opposition. As a single mother of two children, she is redefining the possibility for women to have it all and raise their children in an entrepreneurial and financially literate environment.

Links and Resources:

Ask Loral App: https://apple.co/3eIgGcX

Loral on Facebook: https://www.facebook.com/askloral/

Loral on YouTube: https://www.youtube.com/user/lorallive/videos

Loral on LinkedIn: https://www.linkedin.com/in/lorallangemeier/

Money Rules: https://integratedwealthsystems.com/money-rules/

Millionaire Maker Store: https://millionairemakerstore.com/

Real Money Talks Podcast: https://integratedwealthsystems.com/podcast/

Integrated Wealth Systems: https://integratedwealthsystems.com/

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Where do you live? In Texas?

Sonia: Dallas, Texas.

I love it. All right. So your question is, how many years can a business take a loss on taxes? So you don't take a loss on taxes, you take a loss on revenue and profits, of which then you don't pay a lot of tax. So as far as like, having a negative or a carry forward, there isn't a distinction in

that. So it's not taking a loss on taxes, like, you have to have a legal intent to make money, right? So you have up to three years to have it make some money. So if it makes 10,000 20,000 doesn't matter making money, if that's not enough to cover the bills, it didn't say, like the IRS code doesn't say,

have to be profitable to be able to activate the tax code, it just has to make money. So do you see the difference? Like, so it's a loss on revenue, not a loss on taxes, because if, if you took a loss for, say, more than three years, I mean, where you actually have making no money, but all you want to do is

take deductions. That's where you get flagged.

But if you,

you know, if you make, say, 20,001 year, 50,000 another year, and then for whatever year, year three is like hardly anything, you're still fine. It's if you have no revenue at all, you can't just take deductions on a no revenue machine. You have to have an intent and effort to make money.

Sonia: Okay? So the years I've, I've had different, different, quote, unquote businesses, so to speak. It only has a sense to to get some taxes written off, not really as a profitable source. And I've switched those up over the years. So now I'm at the point where I want to do the real

thing.

Let's do, yeah, let's do the real

Sonia: LLC. Have a, have a, have an LLC. Do it, put a trust in place and have more passive incomes. I am not near ready to retire, but I need to, because my daughter's in Ohio, I need to move, quit my job in Texas, and move to Ohio, and I want to be a passive income earner so I can be a grandma.

That's my goal.

Well, but then so I would say, if you have enough assets to invest to make passive income great, but if not, you still need, just like, you know, selling Donna, you still need the operating company to get the most of the tax code. So if you've been bouncing around, you're probably okay.

Ohio has really good tax benefits and great real estate. So does Texas, but not necessarily Dallas, I wouldn't necessarily buy investment property there, but you can in Ohio, we have a ton, a ton of clients. So if you move up to Ohio as a table member, we'll introduce you some of our

fastest real estate millionaires have come out of the state of Ohio. Yeah,

there's a lot. And

you could also partner with other people. So if you didn't be as active, I didn't say that to Donna, but that's just part of the benefit of the benefit of being in the community. Of the big table is you can partner with other people. So you bring money, or you bring experience, and you bring credit and they do

the deal, or vice versa, and then you're

Sonia: looking for,

yeah, we have all that's available to you, and a lot of it, I mean, we have a few guys who, I mean, they do a million just in rental income, and all of their real estate's in Ohio.

Sonia: Yeah, my stock portfolios, I earn any money, but 40% of it goes to

taxes.

Sonia: Sock market, crappy. So this is that's not very good of a game.

Well, the

stock market is actually on fire, and the highest it's ever been. But if you don't know how to play inside of it, you're not winning. And if you have a manager somebody else, you're probably not winning. So we use a different, you know, process than that. So almost everything you're going to introduce to is

very alternative. It doesn't mean it's scary, it's just different. It gives you all the tax benefits and just and again, I would not if you're moving, don't start a Texas LLC just on a whim, like we'll we'll guide you on the move. What entity to start? And then if you don't have a trust, then our teams

will help set up the trust, help set up life insurance, help set up all the things so it's all integrated and connected, so you have a whole team with

Sonia: you. Perfect. Thank you. Yes, all right.

When are you and Laura talking again? Thursday?

Sonia: Yes, ma'am. Thursday,

okay, what happened to Wednesday with you folks like talk tomorrow. Let's get urgent.

Sonia: Oh, I have meetings all day tomorrow, at 711 I

can't. Well, that's where you work.

Sonia: Yes,

okay, well, call in six to one and then call Laura. All right. You guys talk Thursday and same with you, Don I see you're still out there. Sandy and Laura both have my cell phone. I will text you as needed, and we will be back in touch with other other questions you might come up as you

continue your conversations. Let

and

Sonia: dive into YouTube. Thank you,

thank you, and let's get you on to your next chapter as well.

Sonia: Perfect,

perfect. Thank you.