Hello I found your video really helpful on which vehicle expenses I can deduct all my tax return this year. Ironically I live at exit 0 on the garden State parkway ;)
Great video! Looking for guidance on car related deductions. I have a Tesla related TH-cam channel. I create videos covering long road trips in an EV. Can I deduct the mileage of the trip? What about hotels while doing the road trip? I don't road trip for the sake of road tripping. For example, I took a 6000 mile trip with my wife and it was a vacation trip. However, I posted a number of videos covering the road trip and camping. So, can I deduct the milage and other costs? This is what I"m trying to figure out. Thanks in advance!
Looking for a friend, my actual expense deduction gave me about $1K less than using the standard mileage rate, however turbo tax is recommending I use the actual expenses? Am I missing something, if my deduction is hight with standard, doesn't that mean I'll get more money back using that method? If so, why is TurboTax recommended actual expenses despite telling me I have a higher deduction with the standard rate?
Hi Eric! Thank you for your question. You can figure out your specific car-related write-offs on the Keeper app. There, you’ll be able to chat with a tax assistant who can help. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/FuirUZJPikb
Hello! WOW your channel is amazing. I have learned so much. Thank you!!! I have a question -- I am a DJ and currently pull a trailer. I write off my expenses on the truck that I use but am thinking about purchasing a van. I know I can use Section 179 but just how much of that van cost will I get to recoup? In using 179 for equipment purchases, only about 25% actually comes off of my taxes (in terms of real dollars) when I file section 179. So, let's say I spend $25,000 on a van; how much of that $25,000 would actually be realized on my bottom line? I hope that makes sense and I'm sure it's not a simple answer but any answer you can give me is appreciated. Just trying to see if it's worth the investment. Thanks so much!!
Hi there! Thanks for the question. I can’t give you an exact “dollar saved” answer because I don’t know the specifics of your tax situation. However, because a van is categorized as “transportation equipment” for tax purposes, you can claim the full $25,000 in the first year if you use Bonus depreciation or Sec 179 expensing. This means you can reduce your taxable income dollar for dollar. So if your gross self-employment income is $60,000, only $35,000 would be subject to tax - that’s pretty good! Normally, autos must be listed as fixed assets on your return and depreciated over their useful life (five years). So even though the van costs $25,000, you would only be able to reduce your income by $5,000. The beauty of Bonus and Sec 179 is that you get bypass those rules and claim the full benefit of your purchase in the first year. If you like the idea of spreading out the write-off over 5 years, Section 179 offers the most flexibility. You could claim $10,000 in the first year and depreciate the remaining $15,000 over the next 4 years.
Can you write off car expenses AND home expenses for home office? For example- home health nurse who does charting at home, but travels to client homes.
Yes, it's completely possible to write off both car and home expenses - great question! The situation you describe here sounds exactly right, as long as the nurse has a dedicated space for charting at home.
So if you bought a car in auction and it’s paid for , can I still get tax a right off and it’s under 6000 lbs? I’m using for my for Turo use. Can I get some money back and also use the mileage deductible when I fill for taxes. ?
Hey Benjamin! Thanks for your question. You can figure out your specific situation with regard to car write-offs using the Keeper app. There, you’ll be able to chat with a tax assistant who can help. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/rLD9tgihUwb. You can also email our support team at support@keepertax.com if you’d like to ask more questions!
Hello! I am interested in utilizing the actual expense method since I will be using less than 30,000 miles for work in a given year. I am not sure what needs to be included for the mileage log would this be enough? I am keeping track of: date, miles driven, starting location, ending location, purpose of trip (Uber eats which is what I would put correct?), odometer start and end for each trip. Let me know if I need anything else in my mileage log. I also have reciepts of my gas trips is that useful for when tax time comes? Thank you so much for answering!
Hi, Amy! If you're using the actual expenses method, tracking the data points you've outlined will be more than enough! In fact, you don't actually need more than A) your total mileage for the year and B) a ballpark estimate of how much you drove the car for work (as opposed to for personal purposes). As for receipts, you don't need physical copies for all your gas fill-ups - that would be a lot! Any kind of transaction record, like bank or credit card statements, would do the trick. If you use the Keeper Tax app, it can keep track of these records for you automatically: keeper.tax/e/FuirUZJPikb Hope that helps!
Does the vehicle have to be registered under my business in order for me to use the expenses as write offs? Or can it be registered under my personal name?
Great question, Andrew! You can definitely still write off car expenses for a vehicle registered under your personal name. You'll be in good shape as long as you only deduct your business-use percentage - that is, if you use your car for work 70% of the time, deduct 70% of your car expenses.
If I drive for Doordash and my car is primarily used for business purposes, can I do a standard mileage deduction and also deduct interest on my car loan? Interest significantly effects my actual profit, so that would make sense to me.
Hi, David! Unfortunately, you can't deduct the interest on your car loan on top of the standard mileage deduction. You can, however, claim it if you deduct actual vehicle expenses instead. Here's an article where you can learn more: www.keepertax.com/posts/can-i-write-off-my-car-payment
Hi so I'm an independent contractor in which I work as a travel LVN. Assuming I lease a car primarily for the use of work. Lets say my total actual monthly car expenses are $600 a month, and my gross income is $50,000. Would my agi be $42,800 ($50,000 - (12*$600))? As an above the line deduction? Then deducting 50% of the self employment tax ($3750) and standard deduction ($12550), my final taxable income would be $26,200? Some insight would be truly appreciated, thank you.
Hi, Micheal! Yes, you would be able to claim those auto expenses as an above-the-line deduction against your business income, and your taxable income would shake out to about $26k after deductions (probably less when you factor in the 20% QBI deduction on your business income). Just so you're aware: Your income tax is assessed on your taxable income, but your self-employment tax is assessed on your net business income (so the $42,800). Your self-employment tax isn't reduced by your standard deduction, the only thing that will lower it further is more business expenses.
@@renae2013 Hi, Renae! If you drive your car across the country for a business trip - rather than to move somewhere permanently - you'd be able to write off all the miles associated with your travel, round-trip. To learn more about what counts as a business trip, you can read this article: www.keepertax.com/posts/business-travel-tax-deduction
Good question! It's actually the other way around - mileage was designed to capture the actual expenses you'd take off if you used the actual method. Think of it this way: the more miles you drive, the higher your actual car expenses will be - you'll have to get gas refills more often, and you'll generate more wear and tear on your car that'll lead to more frequent repairs, and so on. So in that sense, mileage is included in the actual method, yes.
Hi there! If you use the actual expenses method, there's no need to track every single mile you drove for work. All you need is your total mileage for the year - which you can grab from your odometer - and a ballpark estimate of how much of that was for business purposes. You can learn more here: www.keepertax.com/posts/track-miles-for-taxes
Hey Vivian! If you financed a personal vehicle that you use partially for business, you can't write off your car payments. However, you can write off part of your car loan interest - that counts as a car-related business expense, just like gas and car repairs. Read more here: www.keepertax.com/posts/can-i-write-off-my-car-payment
Hi, Najah! Keeper Tax can definitely help you find write-offs and file your taxes as an Uber driver. To get started, go to this page if you have Blue status: www.keepertax.com/uber-blue Or this page if you have Gold status: www.keepertax.com/uber-gold
![[LIVE] BABYMONSTER(베이비몬스터) - DRIP | 두시탈출 컬투쇼](http://i.ytimg.com/vi/UG05pxLGwzc/mqdefault.jpg)
Hello I found your video really helpful on which vehicle expenses I can deduct all my tax return this year. Ironically I live at exit 0 on the garden State parkway ;)
Thank you, great info!! I appreciate you and will look into the app
I hope you love it, Tammy!
Turnpike and parkway? Sounds like a Jersey Girl! Amazing video thank you so much!
Awesome! Thank you!
If I bought my car in 2021 and already filed taxes for that year and 2022, can I still use any of the 2 methods mentioned on the video for 2023?
Great video! Looking for guidance on car related deductions. I have a Tesla related TH-cam channel. I create videos covering long road trips in an EV. Can I deduct the mileage of the trip? What about hotels while doing the road trip? I don't road trip for the sake of road tripping. For example, I took a 6000 mile trip with my wife and it was a vacation trip. However, I posted a number of videos covering the road trip and camping. So, can I deduct the milage and other costs? This is what I"m trying to figure out. Thanks in advance!
Hi, your videos are very interesting, can I write off mileage for work related trainings even if if your company paid you for it already.
Hey! Unfortunately, if your company paid for your mileage already, you can't write them off anymore. Thank you for watching!
Looking for a friend, my actual expense deduction gave me about $1K less than using the standard mileage rate, however turbo tax is recommending I use the actual expenses? Am I missing something, if my deduction is hight with standard, doesn't that mean I'll get more money back using that method? If so, why is TurboTax recommended actual expenses despite telling me I have a higher deduction with the standard rate?
Hi Eric! Thank you for your question. You can figure out your specific car-related write-offs on the Keeper app. There, you’ll be able to chat with a tax assistant who can help. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/FuirUZJPikb
Keeper Tax University ❤
Hello! WOW your channel is amazing. I have learned so much. Thank you!!! I have a question -- I am a DJ and currently pull a trailer. I write off my expenses on the truck that I use but am thinking about purchasing a van. I know I can use Section 179 but just how much of that van cost will I get to recoup? In using 179 for equipment purchases, only about 25% actually comes off of my taxes (in terms of real dollars) when I file section 179. So, let's say I spend $25,000 on a van; how much of that $25,000 would actually be realized on my bottom line? I hope that makes sense and I'm sure it's not a simple answer but any answer you can give me is appreciated. Just trying to see if it's worth the investment. Thanks so much!!
Hi there! Thanks for the question. I can’t give you an exact “dollar saved” answer because I don’t know the specifics of your tax situation.
However, because a van is categorized as “transportation equipment” for tax purposes, you can claim the full $25,000 in the first year if you use Bonus depreciation or Sec 179 expensing. This means you can reduce your taxable income dollar for dollar. So if your gross self-employment income is $60,000, only $35,000 would be subject to tax - that’s pretty good!
Normally, autos must be listed as fixed assets on your return and depreciated over their useful life (five years). So even though the van costs $25,000, you would only be able to reduce your income by $5,000.
The beauty of Bonus and Sec 179 is that you get bypass those rules and claim the full benefit of your purchase in the first year.
If you like the idea of spreading out the write-off over 5 years, Section 179 offers the most flexibility. You could claim $10,000 in the first year and depreciate the remaining $15,000 over the next 4 years.
I pay 1400 for a car rental a month , driving for instacart with a 1099, can use this as a write off ?
Great videos ❤
So glad you like them!
Can you write off car expenses AND home expenses for home office? For example- home health nurse who does charting at home, but travels to client homes.
Yes, it's completely possible to write off both car and home expenses - great question! The situation you describe here sounds exactly right, as long as the nurse has a dedicated space for charting at home.
So if you bought a car in auction and it’s paid for , can I still get tax a right off and it’s under 6000 lbs? I’m using for my for Turo use. Can I get some money back and also use the mileage deductible when I fill for taxes. ?
Hey Benjamin! Thanks for your question. You can figure out your specific situation with regard to car write-offs using the Keeper app. There, you’ll be able to chat with a tax assistant who can help. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/rLD9tgihUwb. You can also email our support team at support@keepertax.com if you’d like to ask more questions!
Thank you
Hello! I am interested in utilizing the actual expense method since I will be using less than 30,000 miles for work in a given year. I am not sure what needs to be included for the mileage log would this be enough? I am keeping track of: date, miles driven, starting location, ending location, purpose of trip (Uber eats which is what I would put correct?), odometer start and end for each trip. Let me know if I need anything else in my mileage log. I also have reciepts of my gas trips is that useful for when tax time comes? Thank you so much for answering!
Hi, Amy! If you're using the actual expenses method, tracking the data points you've outlined will be more than enough! In fact, you don't actually need more than A) your total mileage for the year and B) a ballpark estimate of how much you drove the car for work (as opposed to for personal purposes).
As for receipts, you don't need physical copies for all your gas fill-ups - that would be a lot! Any kind of transaction record, like bank or credit card statements, would do the trick. If you use the Keeper Tax app, it can keep track of these records for you automatically: keeper.tax/e/FuirUZJPikb
Hope that helps!
Does the vehicle have to be registered under my business in order for me to use the expenses as write offs? Or can it be registered under my personal name?
Great question, Andrew! You can definitely still write off car expenses for a vehicle registered under your personal name. You'll be in good shape as long as you only deduct your business-use percentage - that is, if you use your car for work 70% of the time, deduct 70% of your car expenses.
If I drive for Doordash and my car is primarily used for business purposes, can I do a standard mileage deduction and also deduct interest on my car loan? Interest significantly effects my actual profit, so that would make sense to me.
Hi, David! Unfortunately, you can't deduct the interest on your car loan on top of the standard mileage deduction. You can, however, claim it if you deduct actual vehicle expenses instead.
Here's an article where you can learn more: www.keepertax.com/posts/can-i-write-off-my-car-payment
Drove 71 miles each way for a contractor position
Hi so I'm an independent contractor in which I work as a travel LVN. Assuming I lease a car primarily for the use of work. Lets say my total actual monthly car expenses are $600 a month, and my gross income is $50,000. Would my agi be $42,800 ($50,000 - (12*$600))? As an above the line deduction? Then deducting 50% of the self employment tax ($3750) and standard deduction ($12550), my final taxable income would be $26,200? Some insight would be truly appreciated, thank you.
Hi, Micheal! Yes, you would be able to claim those auto expenses as an above-the-line deduction against your business income, and your taxable income would shake out to about $26k after deductions (probably less when you factor in the 20% QBI deduction on your business income).
Just so you're aware: Your income tax is assessed on your taxable income, but your self-employment tax is assessed on your net business income (so the $42,800). Your self-employment tax isn't reduced by your standard deduction, the only thing that will lower it further is more business expenses.
What if you drive your car across the country. >2000 miles
@@renae2013 Hi, Renae! If you drive your car across the country for a business trip - rather than to move somewhere permanently - you'd be able to write off all the miles associated with your travel, round-trip.
To learn more about what counts as a business trip, you can read this article: www.keepertax.com/posts/business-travel-tax-deduction
Can i switch from milage one year to actual the next year?
Hi, Tina! Great question. Yes - you can switch from mileage to actual, but not the other way around.
Is mileage included in actual method?
Good question! It's actually the other way around - mileage was designed to capture the actual expenses you'd take off if you used the actual method.
Think of it this way: the more miles you drive, the higher your actual car expenses will be - you'll have to get gas refills more often, and you'll generate more wear and tear on your car that'll lead to more frequent repairs, and so on. So in that sense, mileage is included in the actual method, yes.
@@KeeperTax
Thank you
How do I get the amount of mileage for actual?
Hi there! If you use the actual expenses method, there's no need to track every single mile you drove for work. All you need is your total mileage for the year - which you can grab from your odometer - and a ballpark estimate of how much of that was for business purposes.
You can learn more here: www.keepertax.com/posts/track-miles-for-taxes
@@KeeperTax
Ty
Can I write off car payments
Hey Vivian! If you financed a personal vehicle that you use partially for business, you can't write off your car payments. However, you can write off part of your car loan interest - that counts as a car-related business expense, just like gas and car repairs.
Read more here: www.keepertax.com/posts/can-i-write-off-my-car-payment
One alternate scenario: If your car is leased, you *can* use the actual expense method to deduct the business portion of your lease payments!
#turnpike
I'm an uber driver and I don't understand what to do. Can you give me leading steps or a number to call.
Hi, Najah! Keeper Tax can definitely help you find write-offs and file your taxes as an Uber driver.
To get started, go to this page if you have Blue status: www.keepertax.com/uber-blue
Or this page if you have Gold status: www.keepertax.com/uber-gold
#keepertaxuniversity