Nice video. I think it covers the basics pretty well. And to the other small business owners, losses extending to like 2023 is not unheard of since 2020. That was a rough year for the smaller guys. We are barely leveling out now.
Your video was very helpful, and straight to the point. Love the examples! I do have a question: I'm getting ready to open a Spa, and I brought alot to start the business. Should I file those expenses for 2022, or wait until the business is up and running for tax term 2023? Hope I'm making since! Thank you
Hey, Auhmilyon! If I'm understanding correctly, you're asking whether you should deduct your business startup costs as 2022 expenses, or treat them as 2023 expenses. We've got an article on business startup costs right here (that we're working on turning into a video soon!): www.keepertax.com/posts/startup-costs But in a nutshell, for startup costs like what you're working with, you'll have to wait to deduct them until your business is officially active. That doesn't mean you have to be profitable already - it just means your spa is open to customers and actively seeking them out!
@@auhmilyonc7890 Oops, just realized I made a typo! That should have said "That /doesn't/ mean you have to be profitable." I've edited the reply, so it's correct now! Thanks for watching, Auhmilyon :)
Hey Tyra, many thanks for your videos. I have question: On September I opened an auto glass company and I do have LLC and I spent money on equipment, google ads, vehicle .. etc and I got only around 400$ or less of revenue while my expenses loss around 22,000$ and I want to close the business for health conditions and I already have W2 job, so I am able to offset the salary with the losses from the business when I file tax for 2023?. Thanks you in advance.
Thank you! One question - do you have to have an LLC or other formal business designation in order to claim losses? I am starting a new business and have purchased equipment to get started, but haven't sold anything yet and haven't registered my business yet. Thanks!
Thank you! So where do we provide that written info. about our intent to make money, business plan, etc. so we're not called a "hobby". Do we add a letter to our tax forms? An explanation in the itemized deductions area? or where?
@@maryambrose1455 Hi! No need to attach anything extra to your tax return. You'll only need to worry about proving you're a business if the IRS ends up classifying you as a hobbyist after you file - so keep the proper documentation just in case, but it's not something you need to deal with now!
Hey Floriane! Rental losses are handled a little differently from business losses, but the basics are the same: subtract your work expenses from your rental income. We're hoping to publish more guidance for rentals soon, but in the meantime, refer to this IRS guide for more information: www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping#:~:text=Rental%20income%20is%20any%20payment,reported%20on%20your%20tax%20return.
Thank you so much for all of your insight, I really appreciate your knowledge. I just have one question if you don't mind helping me out. I will try to make it quick, lol. We just started making money this year as a content creator on Newsbreak. We have a 1099-NEC from them. We travel and make videos about all the places we go to. We spent so much on hotels and gas this past year say $13,000. But we only made $1,800. Can we really write off all of our lodging and gas even though we didn't make videos about the lodging but the places we visited once we got there. lol, does that make sense? Like we stayed at a Holiday Inn Express for like $150. So, we could get up the next day and visit a state park or national park and make a video about the park, can I still right off the hotel expense? Thank you so much for your time in answering my silly question :) - Melissa
Hi, Melissa! Really good question. The answer is yes, it sounds like you can write off your Holiday Inn Express stay, because you needed to stay in the area overnight to film in the park! Think of it this way: filming isn't the only kind of work that might make something a legitimate business trip. Someone might, for example, travel out of state to give a presentation at an industry conference, forcing them to stay the night. Their hotel fees would count as a write-off even though their conference presentation didn't take place at the hotel and didn't have anything to do with the hotel in general. It would be the same thing in your case!
@@KeeperTax That makes perfect sense, thank you so much for answering me so quickly! I really appreciate you and your videos, you explain things so well! :)
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
thank you for the video. Very engaging and easy to follow.
Nice video. I think it covers the basics pretty well. And to the other small business owners, losses extending to like 2023 is not unheard of since 2020. That was a rough year for the smaller guys. We are barely leveling out now.
Recently got into learning about taxes and this channel is a gem and a wealth of resource along with my readings
So glad you're finding it helpful!
ahhh clear and concise biz tax tips. subscribed!
Your video was very helpful, and straight to the point. Love the examples!
I do have a question: I'm getting ready to open a Spa, and I brought alot to start the business. Should I file those expenses for 2022, or wait until the business is up and running for tax term 2023? Hope I'm making since!
Thank you
Hey, Auhmilyon! If I'm understanding correctly, you're asking whether you should deduct your business startup costs as 2022 expenses, or treat them as 2023 expenses. We've got an article on business startup costs right here (that we're working on turning into a video soon!): www.keepertax.com/posts/startup-costs
But in a nutshell, for startup costs like what you're working with, you'll have to wait to deduct them until your business is officially active. That doesn't mean you have to be profitable already - it just means your spa is open to customers and actively seeking them out!
@@KeeperTax Thank you
@@auhmilyonc7890 Oops, just realized I made a typo! That should have said "That /doesn't/ mean you have to be profitable." I've edited the reply, so it's correct now! Thanks for watching, Auhmilyon :)
@@KeeperTax Thank you
The best video I found to explain this. Thank you so much!!!
So glad it was helpful! Thank you for watching!
Hey Tyra, many thanks for your videos. I have question: On September I opened an auto glass company and I do have LLC and I spent money on equipment, google ads, vehicle .. etc and I got only around 400$ or less of revenue while my expenses loss around 22,000$ and I want to close the business for health conditions and I already have W2 job, so I am able to offset the salary with the losses from the business when I file tax for 2023?. Thanks you in advance.
learned so much!! thank you
Thank you for the information! Very helpful 🙂
Such a great video! Thank you!
Thanks so much for watching, Austin!
Hello and thanks for the video. Question? My husband didn't get paid for a contract job he did in 2022. Can I add that loss to my 2023 taxes?
Thanks this is a great video and resources 😊🙏🏿😇
Thank you so much for watching!
@@KeeperTax You are so welcome!
Very well done and informative video.
Thank you! One question - do you have to have an LLC or other formal business designation in order to claim losses?
I am starting a new business and have purchased equipment to get started, but haven't sold anything yet and haven't registered my business yet. Thanks!
Really good question, Angie! You don't need an LLC or any other business entity to claim losses - sole proprietors get to claim them as well
Video was on point🎯💯
Thank you! So where do we provide that written info. about our intent to make money, business plan, etc. so we're not called a "hobby". Do we add a letter to our tax forms? An explanation in the itemized deductions area? or where?
btw I am an Artist, started my biz 3 years ago, but in my 3rd year I'm still making a loss. But I'm really trying to make a profit.
@@maryambrose1455 Hi! No need to attach anything extra to your tax return. You'll only need to worry about proving you're a business if the IRS ends up classifying you as a hobbyist after you file - so keep the proper documentation just in case, but it's not something you need to deal with now!
Great video ! Got a question though , how do you estimate your business loss for businesses such as short term rental ? Thanks
Hey Floriane! Rental losses are handled a little differently from business losses, but the basics are the same: subtract your work expenses from your rental income. We're hoping to publish more guidance for rentals soon, but in the meantime, refer to this IRS guide for more information: www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping#:~:text=Rental%20income%20is%20any%20payment,reported%20on%20your%20tax%20return.
Thank you so much for all of your insight, I really appreciate your knowledge. I just have one question if you don't mind helping me out. I will try to make it quick, lol. We just started making money this year as a content creator on Newsbreak. We have a 1099-NEC from them. We travel and make videos about all the places we go to. We spent so much on hotels and gas this past year say $13,000. But we only made $1,800. Can we really write off all of our lodging and gas even though we didn't make videos about the lodging but the places we visited once we got there. lol, does that make sense? Like we stayed at a Holiday Inn Express for like $150. So, we could get up the next day and visit a state park or national park and make a video about the park, can I still right off the hotel expense? Thank you so much for your time in answering my silly question :) - Melissa
Hi, Melissa! Really good question. The answer is yes, it sounds like you can write off your Holiday Inn Express stay, because you needed to stay in the area overnight to film in the park! Think of it this way: filming isn't the only kind of work that might make something a legitimate business trip. Someone might, for example, travel out of state to give a presentation at an industry conference, forcing them to stay the night. Their hotel fees would count as a write-off even though their conference presentation didn't take place at the hotel and didn't have anything to do with the hotel in general. It would be the same thing in your case!
@@KeeperTax That makes perfect sense, thank you so much for answering me so quickly! I really appreciate you and your videos, you explain things so well! :)
🙏 𝐩𝐫𝐨𝐦𝐨𝐬𝐦
Thank you ✨