Real Money Talks · 2026-05-22 · 5 min
Key moments - from our scoring
Substance score
27 / 100
Five dimensions, 20 points each
Loral Langemeier addresses a common tax misconception: that businesses can indefinitely take losses on taxes. The key distinction she makes is that the IRS doesn't require profitability, only demonstrable intent to make money - if a business generates any revenue within a three-year window, it can legally deduct losses. Sonia, the caller from Dallas, reveals she's used multiple shell businesses primarily for tax deductions and now wants to build a legitimate enterprise as she transitions to Ohio for family reasons. Langemeier guides her through proper structuring with an LLC and trust, recommends Ohio as a superior market for real estate investment (where her network has built seven-figure rental income portfolios), and emphasizes alternative investments over traditional stock market strategies. For entrepreneurs relying on self-directed tax strategies, the episode underscores the importance of entity selection, integrated legal structures, and leveraging experienced advisors - all central to Langemeier's Big Table membership model.
A business can operate at a loss for up to three years as long as it demonstrates intent and effort to make money, with some positive revenue generated in that window - the IRS does not require profitability, only evidence of business purpose.
Taking a loss on revenue means the business makes money but doesn't profit enough to cover expenses; taking a loss on taxes (which triggers audits) means claiming deductions with zero revenue - the IRS requires actual money-making activity to justify deductions.
No, you should coordinate entity selection with professionals based on your destination state's tax benefits and your specific situation; moving first and then structuring with guidance (like Langemeier's team provides) prevents costly missteps.
Ohio offers superior tax benefits and real estate economics compared to Texas, with Langemeier's network reporting clients earning millions annually in rental income through Ohio properties.
Our reviewer’s read on each dimension, with quotes from the episode.
The episode covers a legitimate tax principle - the three-year revenue generation test for hobby loss rules - but drowns it in vague advice about Ohio real estate, passive income, and trust setup without concrete mechanics. Most substance is offset by placeholders like 'we have a whole team with you' and hand-waving about alternative investments.
you have up to three years to have it make some money
if you make 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
The hobby loss three-year rule is standard IRS doctrine, not original insight. The advice to use LLCs, trusts, and real estate as tax-efficient vehicles is boilerplate wealth-building content circulating everywhere. No fresh frameworks or counterintuitive arguments present.
you have up to three years to have it make some money
put a trust in place and have more passive incomes
Loral Langemeier is a lifestyle brand and podcast regular, but the transcript reveals no specific operating track record, deal examples, or verifiable scale. Sonia is a caller with generic tax questions, not an expert. This is not a conversation between two practitioners; it's a guru-to-layperson call-in.
ASK LORAL: Sonia
I've had different, different, quote, unquote businesses, so to speak
The only numbers offered are vague references: '10,000 20,000', '40% taxes on stock portfolio', 'a million just in rental income.' No named companies, specific deal structures, tax code citations, timelines, or case studies. References to 'Ohio clients' and 'fastest real estate millionaires' are unsubstantiated claims.
So if you make 10,000 20,000 doesn't matter making money
40% of it goes to taxes
Langemeier delivers statements rather than engaging in sharp back-and-forth. Follow-ups are minimal and pivoted toward selling services ('we'll guide you', 'our teams will help'). No pushback on claims, no challenge to assumptions, and the host reads off solutions rather than probing. Final exchange devolves into scheduling logistics.
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.
we'll we'll guide you on the move. What entity to start?
Computed from the transcript - who did the talking, and the words that came up most.
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.
Transcribed and scored by The B2B Podcast Index.
Loral Langemeier: Where do you live? In Texas? ASK LORAL: Sonia: Dallas, Texas. Loral Langemeier: 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. ASK LORAL: 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. Loral Langemeier: Let's do, yeah, let's do the real ASK LORAL: 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. Loral Langemeier: 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 ASK LORAL: Sonia: looking for, Loral Langemeier: 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. ASK LORAL: Sonia: Yeah, my stock portfolios, I earn any money, but 40% of it goes to Loral Langemeier: taxes. ASK LORAL: Sonia: Sock market, crappy.
So this is that's not very good of a game. Loral Langemeier: 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 ASK LORAL: Sonia: you. Perfect. Thank you.
Yes, all right. Loral Langemeier: When are you and Laura talking again? Thursday? ASK LORAL: Sonia: Yes, ma'am.
Thursday, Loral Langemeier: okay, what happened to Wednesday with you folks like talk tomorrow. Let's get urgent. ASK LORAL: Sonia: Oh, I have meetings all day tomorrow, at 711 I Loral Langemeier: can't. Well, that's where you work.
ASK LORAL: Sonia: Yes, Loral Langemeier: 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 ASK LORAL: Sonia: dive into YouTube. Thank you, Loral Langemeier: thank you, and let's get you on to your next chapter as well. ASK LORAL: Sonia: Perfect, Loral Langemeier: perfect.
Thank you.
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