“The consumers basically have more money in their accounts by multiples than they did pre-pandemic,” the Bank of America chief added. “They’re earning more money. Their credit quality is as high as it’s ever been. They have more excess capacity and investing with BFI". Ms Vanessa Saint.
I'm an economist and I have been managing with my income but getting to know BFI investment company, I became secured and stress free from every debts and loans. 👍
As a CPA licensed consultant, I've worked with a lot of clients that try to do this. It doesn't work unless you buy a used car at a depreciated value of no more than $40k. You're only allowed to claim a maximum of $10,200 of depreciation year over year for each filing. Also they closed the loophole with luxury cars after Covid-19 so purchasing a Porsche or corvette etc. won't fall under this small business tax write-off. You can no longer allocate a car to an individual or business either. Most people who attempt the second part wind up having their car repo'd and can face jail time. My advice would be to buy a used car with a luxury or sport trim level (SUV's are best) and pay your monthly payments and write off the car after 2-4 years. Put minimal miles on the car and sell it, essentially that's free money minus the sales tax (Unless you sell from Montana).
I'm a 6fig w2 employee with a side gig doing RE photography. Gross estimated 75k 2022. LLC. Purchased 2023 c8 corvette in business name. Still have personal car. The c8 IS used 75% for business (I have a lot of properties to drive to and stage the car in driveways for nice listing). I was going to depreciate 75% which is 60k over 5y at 12k per year. Do you see a problem with this approach if I have milage to support 75% biz?
Even when you buy an EV. The only way around that is to buy a model X plad add so that the weight of the car put you in a class a farm equipment. Once you have looked labeled as far as equipment you can write-off the entire car to your LLC. Just FYI so that you actually get it right
@@drusier The max depreciation you can claim is $10,200. Because you're claiming 12k you'll end up owing $1800 in taxes each year if you can validate your LLC business asset. The net profit of your LLC is more than the value of the car which is a major red flag with the IRS. I would prepare for an IRS audit which may cause your business vehicle to be excluded from your LLC tax write-off.
I’ll be honest. I watched this with full intentions of poking holes in the theories you presented and pointing out how this video was just a strategy for getting audited. But when you dropped the management corporation loophole…respect. Well done.
This is a simple business practice, as long as your LLC is a legitimate business, and not just an LLC to write off “business expenses” that really aren’t used for your business. If your a sales rep for XYC corporation, you can’t open an LLC and say your a sales rep for the LLC, when you don’t exchange any finances, make any revenue with the LLC, etc. When you file your taxes, your LLC has to show profits, salaries paid, expenses like the car, etc, or it will throw up a red flag and an audit will follow. I know because I’ve done it for 20+ years.
It all depends on how long you keep your car. My wife and I own an LLC and an S Corp. Since we keep cars for well over 10 years, based on the advice of our accountant, we opted for deducting monthly travel/mileage expenses, so we receive $750 each for each company which is 36K a year that doesn't go through payroll and is a business expense. It's my understanding that if you purchase the car through the LLC or S Corp, you can not deduct mileage etc in addition to the payments/depreciation. Now, if you turn over cars every few years, then purchasing would work out in your favor.
"you can not deduct mileage etc in addition to the payments/depreciation." This was my understanding also. I'm no accountant though, but going to get one soon.
Thanks for this super helpful video. I have an LLC. My car is also leased. How can I lease my MB GLS 450 to my LLC (like you’re describing) so I can write off the payments? How did you draft the leasing agreement? Thanks so much 🙏🏿
I think you just have to draft an agreement to personally lease it to the business under the llc then the business is paying it and it’s then a write off from the business ?? I’m trying to figure this out too, I’m trying to buy a car and wondering if I should do it under my business like this but wonder if that’s what to do???
This totally just helped me with my dads current business I wanted to create an LLC for myself. But really had no business but will be getting my management degree. Instead of being a manager within my fathers company I can have my own management company and work with him from that perspective to give myself/ entity more tax opportunities!!
i financed my car for uber and I was able to save ~90% of my tax burden thanks to partly my car. Phew, between gas, insurance and car note, it was incredible. It's amazing how much the IRS taxes you otherwise.
And by watching just one video, I have subscribed. Well done. I know your strategy is not unique in the business world, the privileged class grew up in families that have empires where these practices are not only commonplace but expected and passed on. And that, in and of itself, that class structure, acts as a gatekeeper to this kind of knowledge you're spreading in this video. You're helping the ordinary man circumvent those gatekeepers that have held supreme authority throughout history. Good on you. I can't wait to watch more of your catalog to see what other topics you delve into.
TurdFurgeson571... Awesome comment! Some of us are afraid to move outside of the box! And some of us reason that since we've never heard of it, it doesn't exist. I'm truly ready to learn! Be safe out there 💚💯
Yo bro I don’t even know how I came on this video but no cap, u got my attention, you communication skills are on a next level, definitely got année subscriber.
Great explanation of using a management business to work for your other business! I’ve heard of rich people doing that but didn’t know the concept as to why!
Pops to you and your family bro. I've been waaaayyy too scared over the years to teach exactly what you're teaching in this video. Most people won't be able to digest it and I feared people messing up and blaming me. You know how that goes! But I love to hear how your entire family works together! Next to understanding taxes, working together is how you truly build wealth.
I am an enrolled agent and have been doing taxes for over 15 years. You better be very careful to follow what this man is saying, because he is not giving the complete picture.
If he was a white man would you have said he was well spoken? Why do ppl always associate blk ppl with not being articulate or educated? I guess it's just an unconscious bias ppl have in general. Smh
@@nateg5915 You know, I thought about this after I posted and I think its because he’s around my age and I’m not well spoken, so, its just good to see someone in my age group as a well adjusted adult.
I'm thinking about forming an LLC for a rental property, and just knowing that you have so many options with establishing a business opposed to leaving everything in your personal name is very interesting!
@@daltondasilva8051 thank you for your encouragement! Four months after this comment and I’m about to start building the first floor of the building baby! The foundation is solid. Only up from here!! Sending my love your way. Thank you again!✊🏽
@ it’s been a grind and a struggle, but one that I wouldn’t change for the world. Excited to embrace the journey and continue to expand a grow!! Congratulations on you and wifey making the decision to begin your own business, I LOVE that for you! Happy New Year🔥
40K value is the new limit, vehicles can't be assigned to an individual or business in this way, and... any way it goes..., 10K is the max depreciation now due to post plandemic tax law changes... there are 87,000 new reasons why I would question all this...
So basically, the corvette I’m looking at could be a huge plus for my detailing company versus a deficit as my dad says lmao, I appreciate this insight
You could definitely justify it both as a Prop (similar to what Karlton did) but I'm not sure 100% is easy to prove. There is no way you're not driving it for personal use. Since you're in detailing business, you should have all kinds of equipment/sprayers/chemicals/soap whatever in your business vehicle (assume you drive to client's car to detail it and not them dropping it off). Remember IRS requires you to keep a mileage log and you have to prove every mile if you want to deduct it 100%
I'm glad I stumbled onto this video...a couple of questions: A). Is the Porsche lease in the name of your company and did you have to personally guarantee? B). Would this work if the company is a holding company?
On IRS website (IRS Tax Reform Tax Tip 2019-100), it says "If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business." I think you do have a good reason to say the Porsche is for business purpose. But, I think it's hard to justify it's 100% for business. For the Tesla, I want to know what the business purpose is for the management company to own the car?
Don’t try to navigate such a move solo. Work with a tax professional to sort yourself. If he is wrong, I’m sure he’ll survive an audit just fine. But from your perspective he is a random guy on the internet.
Great job explaining the benefits of the C-Corp and when you need a management S-Corp to manage it. Sometimes articles make it too complicated to digest the information.
I am about to start a business and this video has made me seriously consider an "S Corp". I liked the agreement between you and your S-Corp for the vehicle lease. Smart!
A BIG piece of information that’s missing from this video is if you want to write off 100% of your vehicle, it needs to be 100% used for business only.
Love the breakdown. With what I’ve learned over a decade investing, given enough time, solid investments have the potential to double the initial principal amount, but many investors are instead attracted to the lure of high yields in short periods of time despite the possibility of unattractive losses before even getting out. So the onus is on newbies to beware. Got my second Carrera GT with my first Q ROI.
@Ralph ZimmermanAs long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you, as you can also try out the Roth IRA or I series bonds. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might. With help, these are achievable. LEVI CLEMANS, a pro Fiduciary oversees my portfolio. You can look him up online, and connect him.
With Clemans' oversight, I’ve been able to select well run companies with strong finances and a history of shareholder friendly management practices that have made me good gains in the past months.
Thankfully, my income is enough that I can dump a lot of extra money into the stock market. On the positive, I’m going to start investing since one of my goals is to be financially stable before the year runs out.
I think this video may get people audited by IRS and State revenue departments. You need to make sure you pay “Management co” for actual service they provide and MUST be reasonable. You can’t just make payments without any reasonable business needs. IRS would challenge that and possibly hit you with penalties and interest.
He did explain how he did it. He leased his first car under his business for the tax write-off ($800) of his first car, and then hired his wife under his LLC for the write-off of the second car. He shared how he did it for his LLC. Title is not misleading, he gave you two available legal options.
Is it not awesome to see all young men ? I get your intention but it’s doesn’t come across good. It’s coming off as a racist bc we all know the true racists are the folks who only stand up for their own race and disregards others. Brother, be proud of all successful men ok
Thank you, sir!, for this great content!, folks all over need to know regardless of being a home owner or not, it’ll help you maneuver to get to where you want ya life to be, as far your/one’s aspirations, to achieve things, there will be less speed bumps, because you paid attention to how the game is played.
I can really resonate that having a nice vehicle when you're a young entrepreneur increases your legitimacy as a proper expert in your craft. It has for me! Just gotta stay within your means of course and make a wise choice for the car you end up with.
I absolutely want to take advantage of this with my next vehicle purchase. With what I do for a living it's most definitely passable as a business expense and direct advertising for my particular craft. However, I had been told by a CPA years ago that in order to deduct the vehicle purchase costs, it had to be 100% used for business and never for personal use. I'm hoping I'm completely misinformed on that because I've had my eye on a particular model lexus for a while now but haven't been able to justify the cost when my camry is doing just fine and is all but paid off lol. I'd much rather be cruising in my fully deductible GSF 👌😎
technically, if you have a wrap or some sort of sign pointing towards your business on the vehicle... even doing personal errands can technically be viewed as "business", since you are actively advertising when you drive.
I'm weary of someone calling themselves the "Tax Alchemist" that isn't a CPA, doesn't even have a degree in Acct, Finance, or any Business related field. I mean that's like me a Financial Analyst making vids on how to do Dental Surgery.
@@PaulSorensen5 yea, you can’t just slap a wrap on a personal vehicle and expect tax deductions on the vehicle as the intended Purpose initially is personal. I’m talking about in regards to a Company owned/purchased vehicle with a wrap, this in theory should allow a double deduction for both car expense + advertising.
My question is what he was saying at the end. How can we justify buying something just to write it off? Because at the end of the day aren’t you just spending money? Of course it lowers your taxable income down but you are still spending that money you would of had for your self/business. I’m new to this would love some help to understand🙏🏼. Is it just to buy what you were needing or wanting anyways in a smart way… because to me yes it a write off but you still spending the money you’re would of had?
I just stumbled on your channel at the RIGHT time cause I'm about to start another LLC after like 15 yrs...right on time. DO you have any vids on putting your LLC in a trust or how to structure it?
This information is so helpful. I was considering putting my new car under my LLC. I think I will have to book a consultation with you. Thanks for all u do.
Maybe I’m missing something, but wouldn’t the rental payments for the vehicle received by the lessor have to be included as income; essentially cancelling out the benefit?
When you rent (or lease) an item, you are able to deduct the cost of the leased item. So if he is leasing the car to his corp at the same amount he is paying out of pocket, it cancels out.
@@CollinEichinger0221 if there’s a lease expense then there’s lease income. So if he’s leasing the car to the corporation, he’s receiving income from the corporation.
I’m glad you said that cause people think showing money is showing off it’s the same as cloths cars and jewelry you get cause you like it mainly but you know it brings an image that will bring more money if you have the right mind set of course but some people just don’t understand
Great video, I've been following the channel for a bit and had a question regarding Bonus Depreciation. So as a new business owner who was fortunate enough 2021 to make a 6 figure profit in their first year, I made the decision to purchase a ModelX under my business to help offset my taxes due at the end of the year. After having a few appointments with my CPA who's been super helpful, he told me I am not able to use Bonus Dep because the ModelX is a 2018 and not a 2021; not from the same tax year. All the research and laws i've read does not mention the car has to be from the same year. How do I politely inform him of this to be able to write off the ModelX without coming off as a know it all or being disrepectfuly
Your tax account is wrong. You can take bonus depreciation +179 on any vehicle purchased and used in business after 2017. Call my office and we will take care of this for you.
@@karltondennis thank you. I definitely will. also thank you for what you do for everyone to become more educated and understanding of tax laws in our favor!
Omg you were so clear I could see right through you! You explained that better than anyone else I’ve listened to. Sounded like alien language from other ppl. Thank you
Great video! When you leased the car from yourself to your company did that negatively affect your taxes/ tax return when you filed your personal taxes? Wouldn't that be considered income for you?
I always refer to the part in your video on how your porsche made you made money and motivated you. Dreaming big n even spending big has its upsides thru the energy n motivation you get - it really is an investment if u treat it like that
Hey Karlton, this is super helpful thank you for sharing! Do you know if write-offs and depreciation work the same (or similar) way in Canada? I have a Model X and am about to lease a 2017 718 Cayman S under my LTD corp and wanted to chat with you or one of your counterparts about how to properly structure the vehicles before moving forward.
I was always under the impression that the expense had to be both ordinary and necessary to the business. IRS Pub 535 states "An ordinary expense is one that is common and acceptedIN YOUR INDUSTRY. A necessary expense is one that is helpful and appropriate for your trade or business". Am I misunderstanding?
We have been waiting for you, a true leader, for a very long time. Men of color now have a chance to learn from you how the game is played. Thank you again for your help.
Karlton has a lot of gread videos of course and even other ones related to using the car deduction properly, so watch those. But this note is for those that only watch this video. For the Single member LLC owners, be careful having one vehicle the work one where you electing these deductions and write offs. If by chance you are audited, the IRS will want to know the percentage of use the vehicle was used for business as opposed to personal. Business needs to be 50% and mileage logs kept in good detail order. If you only have one vehicle, it will be hard to say you used for 100% business of course. So it is ideal to have another vehicle, even older for that personal use, especially if you are married as you can get the 100% or close to it write off. I am not a CPA and this comment is for entertainment purposes but research it!
im doing the exact same thing in canada already too. if i depreciate the vehicle at the maximum annual rate of 30%, it allows me to earn up to $73000 before paying a single penny of tax. not only that, but i got the purchase price reduced by $8000 in government rebates :D
Lmao listen…rich people have been using this exact method with their expensive sports/luxury cars for decades and decades…generations and generations. I’m glad someone finally shined some light on it. 😂👍🏾✊🏾👊🏾 Props and love to you bro.
Are you sure you’re actually an accountant? It’s true that you can depreciate over five years, but you can’t deduct the whole car payment, only the interest. It is true that you can deduct the entire car lease payment if the car is used 100% for business.
Karlton I love your videos brother you always drop JEMS brother keep on doing what your doing you are an awesome guy and I appreciate everything you do for the youtube community 🙏 peace be with you!
Last week I told the wife I want a Porsche and a Tesla and I want them to be business vehicles for tax benefits for our 2 companies. Then I see this video. 💪🏾
This is such a good information - I just started my LLC 😎🙏 for logistical purposes. I’m learning a lot from having watching your videos in the past months or so . Thank you !
![How to Write Off 100% of Your Car as a Business [STEP-BY-STEP] | Vehicle Tax Deduction | Sec. 179](http://i.ytimg.com/vi/cbJRCWFUHVU/mqdefault.jpg)
We have to protect him at all costs, he is giving knowledge schools don’t teach
Big Facts 💯
They actually do teach this in classes for an Accounting Major ...
Hey WhatsApp guy.. get lost scammer!
Bro is Karla Dennis your mom?
CONTENT..... CONTENT...... MY MOMS COMPANY......... THIS GUY NEEDS TO BE ERASED
God bless you!!! OMG I can't wait until my scheduled phone call!
Thanks for your comment ⬆️ Reach out to me for consultation and more tips on how to build your finances ✉️...
“The consumers basically have more money in their accounts by multiples than they did pre-pandemic,” the Bank of America chief added. “They’re earning more money. Their credit quality is as high as it’s ever been. They have more excess capacity and investing with BFI". Ms Vanessa Saint.
I'm an economist and I have been managing with my income but getting to know BFI investment company, I became secured and stress free from every debts and loans. 👍
As a CPA licensed consultant, I've worked with a lot of clients that try to do this. It doesn't work unless you buy a used car at a depreciated value of no more than $40k. You're only allowed to claim a maximum of $10,200 of depreciation year over year for each filing. Also they closed the loophole with luxury cars after Covid-19 so purchasing a Porsche or corvette etc. won't fall under this small business tax write-off. You can no longer allocate a car to an individual or business either. Most people who attempt the second part wind up having their car repo'd and can face jail time.
My advice would be to buy a used car with a luxury or sport trim level (SUV's are best) and pay your monthly payments and write off the car after 2-4 years. Put minimal miles on the car and sell it, essentially that's free money minus the sales tax (Unless you sell from Montana).
I'm a 6fig w2 employee with a side gig doing RE photography. Gross estimated 75k 2022. LLC. Purchased 2023 c8 corvette in business name. Still have personal car. The c8 IS used 75% for business (I have a lot of properties to drive to and stage the car in driveways for nice listing). I was going to depreciate 75% which is 60k over 5y at 12k per year. Do you see a problem with this approach if I have milage to support 75% biz?
Thanks for the advice !
Even when you buy an EV. The only way around that is to buy a model X plad add so that the weight of the car put you in a class a farm equipment. Once you have looked labeled as far as equipment you can write-off the entire car to your LLC. Just FYI so that you actually get it right
@@drusier The max depreciation you can claim is $10,200. Because you're claiming 12k you'll end up owing $1800 in taxes each year if you can validate your LLC business asset. The net profit of your LLC is more than the value of the car which is a major red flag with the IRS. I would prepare for an IRS audit which may cause your business vehicle to be excluded from your LLC tax write-off.
It's called "Bonus" depreciation!! Bonus depreciation is for certain equipment, vehicles that weigh 6000 gswr (or more).
Such quality content. Not only the information, but how it’s delivered. Very well done.
I’ll be honest. I watched this with full intentions of poking holes in the theories you presented and pointing out how this video was just a strategy for getting audited. But when you dropped the management corporation loophole…respect. Well done.
This is a simple business practice, as long as your LLC is a legitimate business, and not just an LLC to write off “business expenses” that really aren’t used for your business. If your a sales rep for XYC corporation, you can’t open an LLC and say your a sales rep for the LLC, when you don’t exchange any finances, make any revenue with the LLC, etc. When you file your taxes, your LLC has to show profits, salaries paid, expenses like the car, etc, or it will throw up a red flag and an audit will follow. I know because I’ve done it for 20+ years.
Hi. Do I HAVE TO transfer my business vehicle title into my LLC name to write it off? Thanks!
It all depends on how long you keep your car. My wife and I own an LLC and an S Corp. Since we keep cars for well over 10 years, based on the advice of our accountant, we opted for deducting monthly travel/mileage expenses, so we receive $750 each for each company which is 36K a year that doesn't go through payroll and is a business expense. It's my understanding that if you purchase the car through the LLC or S Corp, you can not deduct mileage etc in addition to the payments/depreciation. Now, if you turn over cars every few years, then purchasing would work out in your favor.
"you can not deduct mileage etc in addition to the payments/depreciation." This was my understanding also. I'm no accountant though, but going to get one soon.
I would like to get a better understanding of this when you can.
I 100% agree with you. I was told the same thing. Just one or the other
this is what I do
is your accountant taking new clients?
Best video I've ever seen
dojo in the building
Yessir
dojo2mf moon
Ong
Ohhh shittt, we bringing the dojo here?
Thanks for this super helpful video.
I have an LLC. My car is also leased. How can I lease my MB GLS 450 to my LLC (like you’re describing) so I can write off the payments? How did you draft the leasing agreement?
Thanks so much 🙏🏿
I think you just have to draft an agreement to personally lease it to the business under the llc then the business is paying it and it’s then a write off from the business ?? I’m trying to figure this out too, I’m trying to buy a car and wondering if I should do it under my business like this but wonder if that’s what to do???
This totally just helped me with my dads current business I wanted to create an LLC for myself. But really had no business but will be getting my management degree. Instead of being a manager within my fathers company I can have my own management company and work with him from that perspective to give myself/ entity more tax opportunities!!
You just gave me an idea as I work for my uncles LLC 👁👄👁
i financed my car for uber and I was able to save ~90% of my tax burden thanks to partly my car. Phew, between gas, insurance and car note, it was incredible. It's amazing how much the IRS taxes you otherwise.
This comment 🏆
And by watching just one video, I have subscribed. Well done. I know your strategy is not unique in the business world, the privileged class grew up in families that have empires where these practices are not only commonplace but expected and passed on. And that, in and of itself, that class structure, acts as a gatekeeper to this kind of knowledge you're spreading in this video. You're helping the ordinary man circumvent those gatekeepers that have held supreme authority throughout history. Good on you. I can't wait to watch more of your catalog to see what other topics you delve into.
Nobody cares bro sthu
TurdFurgeson571... Awesome comment! Some of us are afraid to move outside of the box! And some of us reason that since we've never heard of it, it doesn't exist. I'm truly ready to learn! Be safe out there 💚💯
Lmao shut up. This information can be accessed by anyone, especially in the last 20 years. The only gate keepers are the ignorant and unmotivated.
@@BK_2016sr5
who crapped on your coffee
Amen
Yo bro I don’t even know how I came on this video but no cap, u got my attention, you communication skills are on a next level, definitely got année subscriber.
Great explanation of using a management business to work for your other business! I’ve heard of rich people doing that but didn’t know the concept as to why!
Now i need a smart wife. Lmao 🤣
Creating a management company as an llc ? To work under your corporation ??
Excited to pour through your videos bruv. Thanks for this information.
Pops to you and your family bro. I've been waaaayyy too scared over the years to teach exactly what you're teaching in this video. Most people won't be able to digest it and I feared people messing up and blaming me. You know how that goes! But I love to hear how your entire family works together! Next to understanding taxes, working together is how you truly build wealth.
Props*
I am an enrolled agent and have been doing taxes for over 15 years. You better be very careful to follow what this man is saying, because he is not giving the complete picture.
What's the big picture?
@@acbarker5311 You may have to recapture the depreciation you took when and if you sell the car
Well until someone contests what he’s saying with facts(which I haven’t read yet), I’m rolling with him doing my own investigation 💯
@@XZAVRZIIED-ny6hjthere's a CPA who has debunked a handful of his videos already
Wow, you're so well spoken, I cannot think of anyone who could've explained this to me any better. Take my like and follow sir.
If he was a white man would you have said he was well spoken? Why do ppl always associate blk ppl with not being articulate or educated? I guess it's just an unconscious bias ppl have in general. Smh
@@nateg5915 You know, I thought about this after I posted and I think its because he’s around my age and I’m not well spoken, so, its just good to see someone in my age group as a well adjusted adult.
I'm thinking about forming an LLC for a rental property, and just knowing that you have so many options with establishing a business opposed to leaving everything in your personal name is very interesting!
You definitely want the LLC for liability protection too, probably an umbrella insurance policy to add also
You're phenomenal. As a new business LLC owner, I have no income yet to purchase a new vehicle, but I can't wait until I am!
You will soon man! Trust me hard work pays off
@@daltondasilva8051 thank you for your encouragement! Four months after this comment and I’m about to start building the first floor of the building baby! The foundation is solid. Only up from here!! Sending my love your way. Thank you again!✊🏽
How’s your journey so far !??? I’m about to get my LLC with my wife any tips 😃
@ it’s been a grind and a struggle, but one that I wouldn’t change for the world. Excited to embrace the journey and continue to expand a grow!! Congratulations on you and wifey making the decision to begin your own business, I LOVE that for you! Happy New Year🔥
@ I appreciate it ! Happy new year as well. Deciding to take that big step and work for ourselves yk
I totally agree with you, sometimes treating your self to something nice is all you need to keep pushing you forward.
40K value is the new limit, vehicles can't be assigned to an individual or business in this way, and... any way it goes..., 10K is the max depreciation now due to post plandemic tax law changes... there are 87,000 new reasons why I would question all this...
My father's s account told him a couple years ago to go buy a new car so he could write it off since he travels a lot on business. This actually works
So basically, the corvette I’m looking at could be a huge plus for my detailing company versus a deficit as my dad says lmao, I appreciate this insight
You could definitely justify it both as a Prop (similar to what Karlton did) but I'm not sure 100% is easy to prove. There is no way you're not driving it for personal use. Since you're in detailing business, you should have all kinds of equipment/sprayers/chemicals/soap whatever in your business vehicle (assume you drive to client's car to detail it and not them dropping it off).
Remember IRS requires you to keep a mileage log and you have to prove every mile if you want to deduct it 100%
The amount of education you provide is amazing!!
I'm glad I stumbled onto this video...a couple of questions: A). Is the Porsche lease in the name of your company and did you have to personally guarantee? B). Would this work if the company is a holding company?
Great questions, I'm wondering the same thing
if your business have enough credibility and credit score then you don't have to be a personal guarantee.
Business expenses have to be ordinary and necessary. Ask yourself, why does a holding company need a car.
Protect this Brother AT ALL COST!!
I love that you show all the ins and out of business write offs! Thank you 🙏
New sub because of this video, started an LLC this year looking forward to maximizing all the benefits of being an entrepreneur
On IRS website (IRS Tax Reform Tax Tip 2019-100), it says "If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business."
I think you do have a good reason to say the Porsche is for business purpose. But, I think it's hard to justify it's 100% for business. For the Tesla, I want to know what the business purpose is for the management company to own the car?
Don’t try to navigate such a move solo. Work with a tax professional to sort yourself. If he is wrong,
I’m sure he’ll survive an audit just fine.
But from your perspective he is a random guy on the internet.
When your business is brand based on wealth. It’s easily justified.
@@MeetSuperDavenot true. No where close to true
@@republicandan ABSOLUTELY TRUE AS I SIT WITH THE IRS NOW CONFIMRING ME AND REFUTING YOUR NON SENSE.
I've been doing taxes on and off for about 15 years but I learned something new today
Great job explaining the benefits of the C-Corp and when you need a management S-Corp to manage it. Sometimes articles make it too complicated to digest the information.
I am about to start a business and this video has made me seriously consider an "S Corp". I liked the agreement between you and your S-Corp for the vehicle lease. Smart!
Spitting FACTS! Also, last time I tried filming in that parking lot with my car I got kicked out lmaoo
My wife loves red too. She got herself a red 2022 Model 3 Performance. The acceleration is so much fun!
A BIG piece of information that’s missing from this video is if you want to write off 100% of your vehicle, it needs to be 100% used for business only.
Would 100% business be considered as going to the business office and back home, just that?
@@lauraa.x_o that and meetings, business related errands, etc.
In addition 6000lb or more but no more than 14000lb.
I respect the hustle 100% but it's kinda surface level
@@lauraa.x_o those are commuting miles and dont count
@@lauraa.x_o It seems he and his wife are working from home. And, as M Tigress mentioned, IRS does not count commuting as "business purpose"
Love the breakdown. With what I’ve learned over a decade investing, given enough time, solid investments have the potential to double the initial principal amount, but many investors are instead attracted to the lure of high yields in short periods of time despite the possibility of unattractive losses before even getting out. So the onus is on newbies to beware. Got my second Carrera GT with my first Q ROI.
@Ralph ZimmermanAs long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you, as you can also try out the Roth IRA or I series bonds. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might. With help, these are achievable. LEVI CLEMANS, a pro Fiduciary oversees my portfolio. You can look him up online, and connect him.
With Clemans' oversight, I’ve been able to select well run companies with strong finances and a history of shareholder friendly management practices that have made me good gains in the past months.
Thankfully, my income is enough that I can dump a lot of extra money into the stock market. On the positive, I’m going to start investing since one of my goals is to be financially stable before the year runs out.
Such a wealth of information packed in this video! Thank you!
I think this video may get people audited by IRS and State revenue departments. You need to make sure you pay “Management co” for actual service they provide and MUST be reasonable. You can’t just make payments without any reasonable business needs. IRS would challenge that and possibly hit you with penalties and interest.
Exactly
And this guy is clearly using his vehicles for a lot of personal use.
Appreciate the free game fam 🙌🏾
I’m disappointed that the title was misleading. I would have like to hear how you do this with an LLC
He did explain how he did it. He leased his first car under his business for the tax write-off ($800) of his first car, and then hired his wife under his LLC for the write-off of the second car. He shared how he did it for his LLC. Title is not misleading, he gave you two available legal options.
This was a BANGER! Thanks for the nuggets, Karlton!
Awesome to see young Black Men succeeding and sharing knowledge!! ✊🏿
Young men in general. Most of them are stuck in clubs haha. I love these channels🙌🏼🔥
Is it not awesome to see all young men ? I get your intention but it’s doesn’t come across good. It’s coming off as a racist bc we all know the true racists are the folks who only stand up for their own race and disregards others. Brother, be proud of all successful men ok
Ayeee SLO represent that’s sick man! Just got into binge watching your vids great knowledge man!!
Thank you, sir!, for this great content!, folks all over need to know regardless of being a home owner or not, it’ll help you maneuver to get to where you want ya life to be, as far your/one’s aspirations, to achieve things, there will be less speed bumps, because you paid attention to how the game is played.
Idk how I found this channel but thank God. Keep doing these. I’ll watch every one of these so you get a TH-cam check
I can really resonate that having a nice vehicle when you're a young entrepreneur increases your legitimacy as a proper expert in your craft. It has for me! Just gotta stay within your means of course and make a wise choice for the car you end up with.
"increases your legitimacy" hahahahaha good one 😆
This information is GOLD! I'm steady writing down in my notepad. I'm def look this up.
Hello. Quick question. Could you have written off the Porsche the same if you had an LLC instead of C Corp?
Omg the possibilities are so endless. We have to protect him and his family at all costs !
He talks more like he's selling me a car then talking about tax deductions
Cause he is trying to sell s--t and calling it sugar
This was heat bro. Definitely getting in-touch!
I absolutely want to take advantage of this with my next vehicle purchase. With what I do for a living it's most definitely passable as a business expense and direct advertising for my particular craft. However, I had been told by a CPA years ago that in order to deduct the vehicle purchase costs, it had to be 100% used for business and never for personal use. I'm hoping I'm completely misinformed on that because I've had my eye on a particular model lexus for a while now but haven't been able to justify the cost when my camry is doing just fine and is all but paid off lol. I'd much rather be cruising in my fully deductible GSF 👌😎
technically, if you have a wrap or some sort of sign pointing towards your business on the vehicle... even doing personal errands can technically be viewed as "business", since you are actively advertising when you drive.
I'm weary of someone calling themselves the "Tax Alchemist" that isn't a CPA, doesn't even have a degree in Acct, Finance, or any Business related field. I mean that's like me a Financial Analyst making vids on how to do Dental Surgery.
Cars get old and you need to upgrade to be truly efficient in your business. Justified 😎
@@Meowskatools I'm pretty that's a common mistake, and you can only deduct the cost of wrapping the advertisement but not simply driving it.
@@PaulSorensen5 yea, you can’t just slap a wrap on a personal vehicle and expect tax deductions on the vehicle as the intended Purpose initially is personal. I’m talking about in regards to a Company owned/purchased vehicle with a wrap, this in theory should allow a double deduction for both car expense + advertising.
My question is what he was saying at the end. How can we justify buying something just to write it off? Because at the end of the day aren’t you just spending money? Of course it lowers your taxable income down but you are still spending that money you would of had for your self/business. I’m new to this would love some help to understand🙏🏼. Is it just to buy what you were needing or wanting anyways in a smart way… because to me yes it a write off but you still spending the money you’re would of had?
I just stumbled on your channel at the RIGHT time cause I'm about to start another LLC after like 15 yrs...right on time. DO you have any vids on putting your LLC in a trust or how to structure it?
Great insight on writing off my vehicles for my business and also a good reason to have the two vehicles under different business entities.
Is a management company the same as a holding company that owns your other businesses?
I’m a realtor and purchased a pre owned vehicle cash to use for my business. Can I write this vehicle off even though I don’t have a monthly payment?
He doesn't seem to answering these kinds of questions
Yes you can, you can also write off depreciation,maintenance and repairs. I do so every year. Im a Realtor
Knowledge is key, if you are into learning, learn what not to do and you’ll be winning!!!
Creating a lease agreement for your business to use your car is incredibly smart 🔥🔥🔥
This information is so helpful. I was considering putting my new car under my LLC. I think I will have to book a consultation with you. Thanks for all u do.
Maybe I’m missing something, but wouldn’t the rental payments for the vehicle received by the lessor have to be included as income; essentially cancelling out the benefit?
When you rent (or lease) an item, you are able to deduct the cost of the leased item. So if he is leasing the car to his corp at the same amount he is paying out of pocket, it cancels out.
@@CollinEichinger0221 if there’s a lease expense then there’s lease income. So if he’s leasing the car to the corporation, he’s receiving income from the corporation.
@@arthurmoore289 correct. The lease expense negates the amount of the lease income resulting in a net income of zero.
@@CollinEichinger0221 so what’s the benefit if it all cancels out?
@@arthurmoore289 it cancels out on his personal return and then he can still take the deduction on his corp return.
You could just do a 179 deduction and write off the whole thing upfront.
Amazing channel! Great at stripping the topics down and keeping everything simple! Definitely telling my teenage sons to subscribe and watch!
I’m glad you said that cause people think showing money is showing off it’s the same as cloths cars and jewelry you get cause you like it mainly but you know it brings an image that will bring more money if you have the right mind set of course but some people just don’t understand
Great video, I've been following the channel for a bit and had a question regarding Bonus Depreciation. So as a new business owner who was fortunate enough 2021 to make a 6 figure profit in their first year, I made the decision to purchase a ModelX under my business to help offset my taxes due at the end of the year. After having a few appointments with my CPA who's been super helpful, he told me I am not able to use Bonus Dep because the ModelX is a 2018 and not a 2021; not from the same tax year. All the research and laws i've read does not mention the car has to be from the same year. How do I politely inform him of this to be able to write off the ModelX without coming off as a know it all or being disrepectfuly
Your tax account is wrong. You can take bonus depreciation +179 on any vehicle purchased and used in business after 2017. Call my office and we will take care of this for you.
@@karltondennis thank you. I definitely will. also thank you for what you do for everyone to become more educated and understanding of tax laws in our favor!
@@karltondennis
I’m opening a business can you help me impending an S corp?
@@karltondennis please brother help me get off the hamster wheel
You cant simy expense your car payment lol
Omg you were so clear I could see right through you! You explained that better than anyone else I’ve listened to. Sounded like alien language from other ppl. Thank you
Could someone do the same with an LLC? Or would it have to be S corp or C corp? Also what type of form did you use to lease to your business?
Great question because that's what I have...
Aye bro! Really appreciate your content man!! You a beast!!
Great video! When you leased the car from yourself to your company did that negatively affect your taxes/ tax return when you filed your personal taxes? Wouldn't that be considered income for you?
Technically, the company is "suppose" to issue a 1099 to report the lease payments, so there's no net tax benefit.
I always refer to the part in your video on how your porsche made you made money and motivated you. Dreaming big n even spending big has its upsides thru the energy n motivation you get - it really is an investment if u treat it like that
Hey Karlton, this is super helpful thank you for sharing! Do you know if write-offs and depreciation work the same (or similar) way in Canada? I have a Model X and am about to lease a 2017 718 Cayman S under my LTD corp and wanted to chat with you or one of your counterparts about how to properly structure the vehicles before moving forward.
Put the car in the co name. Any tax benefits will be far above titling it in your personal name
Nice to meet another Cal Poly Mustang! Love your videos. Thanks!
“At 25 I was making a comfortable 6 figures at my mother’s company” yeah stopped listening right there lol ……… also it’s PORSCH-UH
I was always under the impression that the expense had to be both ordinary and necessary to the business. IRS Pub 535 states "An ordinary expense is one that is common and acceptedIN YOUR INDUSTRY. A necessary expense is one that is helpful and appropriate for your trade or business". Am I misunderstanding?
We have been waiting for you, a true leader, for a very long time. Men of color now have a chance to learn from you how the game is played. Thank you again for your help.
Great info. Love the way you explain things.
Great video Karlton
Im going to watch this a few times to properly wrap my head around it
Karlton has a lot of gread videos of course and even other ones related to using the car deduction properly, so watch those. But this note is for those that only watch this video. For the Single member LLC owners, be careful having one vehicle the work one where you electing these deductions and write offs. If by chance you are audited, the IRS will want to know the percentage of use the vehicle was used for business as opposed to personal. Business needs to be 50% and mileage logs kept in good detail order. If you only have one vehicle, it will be hard to say you used for 100% business of course. So it is ideal to have another vehicle, even older for that personal use, especially if you are married as you can get the 100% or close to it write off. I am not a CPA and this comment is for entertainment purposes but research it!
Just found your channel a few weeks back while researching LLC. Now in this video I find out you know TJ Millionare, even that much better!
im doing the exact same thing in canada already too. if i depreciate the vehicle at the maximum annual rate of 30%, it allows me to earn up to $73000 before paying a single penny of tax. not only that, but i got the purchase price reduced by $8000 in government rebates :D
"Sales rep in my mother's company" got it bro. You were handed everything.
Best content on taxes this guy
This is genius Karlton. Thank you keep grinding
Lmao listen…rich people have been using this exact method with their expensive sports/luxury cars for decades and decades…generations and generations. I’m glad someone finally shined some light on it. 😂👍🏾✊🏾👊🏾 Props and love to you bro.
Great content 🔥🔥🔥🔥🔥🔥
The baddest dude in the tax game 🔥
I'm so glad i found your channel
Are you sure you’re actually an accountant? It’s true that you can depreciate over five years, but you can’t deduct the whole car payment, only the interest. It is true that you can deduct the entire car lease payment if the car is used 100% for business.
Thanks for the game...... Hope your family enjoys these vehicles, wishing you health and happiness
Karlton I love your videos brother you always drop JEMS brother keep on doing what your doing you are an awesome guy and I appreciate everything you do for the youtube community 🙏 peace be with you!
Real recognize real. Appreciate this video, sir!
What are the requirements for a newly formed LLC business to start thinking about leasing or buying a car under the business name?
Awesome info my man. Specially the one about buying a vehicle you can afford to start with.
You have such an excellent style and presentation. Truly informative! I applaud you. Well done! 💯
Last week I told the wife I want a Porsche and a Tesla and I want them to be business vehicles for tax benefits for our 2 companies. Then I see this video. 💪🏾
This is such a good information - I just started my LLC 😎🙏 for logistical purposes. I’m learning a lot from having watching your videos in the past months or so . Thank you !
Thank you for the info Karlton 👌👏👏👏👏👏👏
Thank you for your information that your giving out answers are there for those who search and listen