In 2028, the Olympics are coming to Los Angeles.
[Hoooorraaayyyy!!]
The last time the Olympics were held in Los Angeles, they brought the city a $250 million profit. In 2028, the Olympics are projected to draw in more than 40 miillion tourists with an estimated profit of $161 million!
But wait, what does that mean for you?
Well, whether you are an Angelino or not, there are a few ways you can dip into the potential profit of the 2028 Olympics. Even though the games are a few years away, setting a financial plan now will better position you for financial success by 2028.
Here are 3 opportunities that could bring you financial gain during the 2028 LA Olympics.
Earn Business Income
People from all over the world are coming to the U.S. for three-weeks -the business opportunities are vast!
Even during an international pandemic, souvenirs and merchandise sold well during the 2021 Toyko Olympics. Olympic-themed coffee mugs, badges and other tokens are examples of items that could produce large profits as the U.S. Gold Medal count rises.
If you live in Los Angeles, a food truck business, language interpretation service, or tour guide service are examples of businesses that will be in high-demand during the Olympic games.
If you do not live in Los Angeles, an online souvenir shop or a sports blog are examples of businesses that might not be local, but will still be in-demand.
Consider starting an Olympic friendly business sooner than later to build your clientele, gain visibility and secure relationships that will lead to maximum income in 2028. Consumer demand will be high, but so will business competition.
Plan accordingly.
Earn Residential Rental Income
If you live in Los Angeles and are not a huge fan of the Olympics, consider renting out your home while you escape the Olympic madness.
[Vegas, anyone?]
As a matter of fact, the IRS Code has this really cool thing known as the Augusta Rule that allows you to receive rental income from your primary residence without having to report it on your tax return. The caveat is, you can only exclude the income from your tax return if you rent out your residence for less than 15 days.
Let’s say you rent out your 3-bedroom single-family home for $800 per day for 10 days (we are assuming this rental price is within market rate). That’s $8,000 of income you could earn tax free!
Please note, although this is a cool federal tax rule, individual state rules may apply. Discuss the details with your tax advisor.
Earn Rental Property Income
Like most years, the Olympics are scheduled to last 16 days. That’s 16 days to earn rental income from investment property, cars, and other types of personal property needed by tourists.
Investment Property
Although Los Angeles has one of the most competitive housing markets, the spread-out geography of the 2028 Olympic events expands opportunities to purchase property and earn rental income.
For instance, swimming events are set to take place in the southwest city of Long Beach. Soccer will take place in the northeast city of Pasadena. Several events will take place near Downtown Los Angeles. And, volleyball games will not even be held in Los Angeles. Those games will take place in Orange County, approximately 30 miles south of downtown Los Angeles.
With the wide range of event destinations, investors might be able to purchase property in less popular parts of Los Angeles that will appeal to Olympic tourists seeking short-term and local rentals.
Cars
Turo and GetAround are examples of platforms that make it easy to rent out your car. The way it works is, you list your car for rent on the rental car platform. Renters select your car, pay a fee per day (or hour) to use it, and return the car to you on an agreed upon date.
These platforms allow car renters to skip the line at Hertz, Enterprise and other major car rental companies and instead engage in peer-to-peer car rentals at a more reasonable price.
With Olympic events more than 30 miles apart, many tourists will need a car. They will be looking for affordable options outside of the status quo. Renting out your car will almost guarantee a significant profit.
Other Types of Property
Renting out car seats, strollers, RVs and other types of personal property might produce a decent amount of rental income during the Olympics.
One idea is to write out a list of things tourists might need during their stay in Los Angeles and make a plan now to purchase those items to rent out.
Conclusion
Keep in mind, these Olympic business opportunities are not exclusive to people who live in Los Angeles. Let’s say you have a friend who lives in Beverly Hills. This friend could serve as an “agent” for your business opportunity and take care of any business needs that require a physical presence.
And you, being the good friend that you are, could compensate them reasonably (and provide any necessary tax documents) for their services.
Remember, your network is your net worth…so tap in!
If physical presence is not needed for your business, you might be able to develop a business idea that earns you income straight from your phone or tablet!
While you should consider the tax and compliance implications of conducting business in a different state, the benefits of tapping into Olympic business opportunities could outweigh the tax liabilities and administrative costs.
Who says you need to be Sha’Carri, Naomi, Simone or any other world-class athlete to compete in the Olympics? Business competition will be alive and well in 2028. Let the games begin!
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers before engaging in any transaction.