How to Write Off Your Dream Car Tax Free in 2023
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- เผยแพร่เมื่อ 10 ก.ค. 2024
- What if I told you, how you can write off your dream car in 2023, tax free... AND the business tax code was actually setup to help write off your dream car.
Book a Tax Services Discovery Call: schedule.lyfetaxes.com/discov...
AND global companies around the world take advantage of this by providing cars from their executives and employees.
Crazy right? In this video, let me show you how you can write off your dream car this year. Must watch the entire video!
UPDATE: When it comes to Section 179, there is a $25,000 cap for all other “heavy” vehicles like the G-Wagon mentioned. To take the full accelerated depreciation you must have a vehicle that is described as a passenger van, utility truck or utility van.
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Outline for How To Write Off Car in 2023:
Intro to Writing off a Car for taxes: (0:00)
What is Standard Mileage Rate: (1:30)
Actual Expense Vehicle Tax Deduction: (2:49)
Which One Should You Choose?: (4:00)
How to Use Standard Mileage Rate Deduction: (5:45)
How to use actual expense deduction: (6:15)
Accelerated vehicle depreciation: (7:23)
Car Depreciation recapture: (9:22)
Bonus tips: (10:07)
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Wow, I don't think I've ever heard anyone mention or bring up section 179. Dropping the real knowledge on this channel!
Not holding anything back!!
Game changer!
Found you guys the other day and i'm learning so much, thank you for uploading these great videos! Even though i'm Canadian and looking for Canadian tax information, this was very informative. Wish there was a Canadian channel like this!
Thanks for watching! When you learn, you should start the channel 😉
Great job! Great energy! Calm intelligence! Simple A to B information! Highly likable and recommended!! ⭐️
I appreciate that!
This guy is really good. Great info and delivery. Editing is top notch. Subscribed!
Love your channel. Easy to follow and can rewatch if needed!
GREAT info, super easy to understand! Thank you for taking the time to provide such valuable information 🥰🥰🙌🏾🙌🏾🙌🏾🙌🏾🙌🏾
You are so welcome! Just curious, what was your favorite part?
I freaking LOOOOVE this channel. They go into such good detail and explain in a way the most common man can understand
Thank you Dale!! 💯
Yess!!! So glad I was blessed to run across this channel. Going to use them too!
me too! so glad I found this today!
When it comes to Section 179, there is a $25,000 depreciation cap for all other “heavy” vehicles like the G-Wagon mentioned. To take the full accelerated depreciation you must have a vehicle that is described as a passenger van, utility truck or utility van.
Suggested Video to Watch Next: 8 Cars You Can Get TAX FREE - th-cam.com/video/1NKfdORdeDk/w-d-xo.html&t
So here is my question. I heard that you can file section 179 for Tesla model Xs because of their extreme weight (meet Kevin is the person I’m referring to right now). Could I still file section 179 for a used 50k model x or would that only be applicable for new model Xs? I’m pretty similar to the model you gave where I drive 30k miles on average for work and a used model x is within the budget, as well as a cool choice for its lower monthly running costs. I cannot yet comfortably buy a new model x as a business vehicle yet.
@@ziolan8970 you can utilize 179 for used vehicles. But they have to be purchased or financed. No leases. And you need to utilize a corp or llc. You can’t have it in your personal name. Is a model x over 6,000 GVWR?
@@bebin73 oh, so it doesn't work with dba's?
So just to be clear, the vehicle has to be put in the name of the business and you can only use an LLC or corp...correct?
@@GoaWay... correct
@@GoaWay... but if you have a DBA then you already (should) have a Corporation or business. For example, business owner John Smith might file the Doing Business As name "Smith Roofing." Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business. For example, Helen's Food Service Inc. might register the DBA "Helen's Catering." The biggest difference between a DBA and an LLC is liability protection and tax benefits. Under a DBA, there is no distinction between the business owner and the business. ... On the other hand, an LLC provides limited liability protection. The business owners' personal property remains completely separate from the business.
Keep doing what you doing my brother. Trying to jump my business off from scratch and I had a lot of questions about buying my vehicle and you put me on point thank you keep up the good works!.One Love!❤🙏😃
I appreciate this concise breakdown!
You’re welcome!! Are you subscribed?
BBBBRRRROOOO! i was wondering this so long and i bought my dream car to drive and for the collector value!
This is GOLD! For my small buisness!
You’re so laid back and helpful man. You’re cool
Thanks, Airmett. You're even cooler for supporting the channel. Thanks.
Great video as always. Thanks, Sean!
Glad you enjoyed it, Shannon! :)
I Learned more than I learned in My whole life off of this video! Very informative and Valuable. Thank You for Sharing 💯😊
Wow thanks for such a good time wonderful comment, glad I could help
Thank you. Great information and easy to follow
Sounds like my company needs a 2021 RAM TRX.🤷🏻♀️
lmao you and i think alike
Bruh lol
Yup
Hell yeah 🤣
All land scaper and pool guys like “👁👃👁✍️”
I just love finding extremely valuable information
We do our best to deliver every day!
Sounds like my bussiness gonna need an AMG, why not
I have one ☝🏽 recommended
Lol
🙌🏿🙌🏿
All Day!
AMG "Bitch better have my money"
You have a great vibe and delivery man. Keep this up g!
Thank you! Will do!
Thank you, Sean!! Great content.
I appreciate that!
6000 pounds is Gross Vehicle Weight, that means Curb weight plus payload capacity. so a heavy SUV with 5000 curb weight that can carry another 1000 pounds qualifies for section 179
hey guys pat here from hostons home automation llc .i just wanted to thank you guys again . after watching this and the credit video , i was able to get a 2020 chrysker pacifica s seats 7 or stores 8 ft of cargo . it gets 80 mpg and qualifies for the setion 179 deduction . perfect for lyft , odd jobs chaffeauring etc . it shpuld make me 700 k in 5 years if verything plays out right
Love your Simplicity.
Amazing stuff! Thanks for the informative video!
Liked and subscribed! Good stuff. Easy to listen to and great info!
Thanks for all the great info!
Thank you for watching!
Awesome video brother, thank you!
Dude i was so f**kin frustrated about being stuck in my lease now you've given me the greatest loophole ever. Seriously bro thank you so much. Can't beleive I'm just findingthis out. Omg thank you.
Wow!! Amazing explanation I’m studying for my EA and your content is extremely helping. Thanks for your time and knowledge.
That means a lot to hear! Hey shoot me an email sean@lyfetaxes.com - after you get your EA, maybe we can work together?
This one felt like it was extra high quality. Thank you for the great info + presentation. Just got a Model Y. Next is Cybertruck and Roadster!!
Good choices!! And thanks that means alot coming from you of course
He really had no idea what he was saying...
Excellent video. I appreciate the knowledge
Great break down and delivery 🔥
Ahh I really appreciate this - Sean :)
Great vid. Explain great
Great video. Thank you for providing concrete examples of exactly how to do this. I.e. write off one's car. My accountant doesn't even explain it this well !
Time to replace them
This is such great information! Thank you. I definitely liked and subscribed
Thanks for supporting the channel Kayla!
Great info my man!
I want a heavy duty deisel truck to start up my roofing and demolition business, this was very helpful 🙏🏽💯
Glad I could help
@@LYFEAccounting hey bro I’m starting up my business that being said if I want to get a call my business name immediately I know I will have to do a personal guarantee what I have to put something down? And what do you think the minimum score is for my personal credit 650?
Listen, I subscribe to a lot of informative business channels and you by far explain the process, the follow thru, and the end game better than any one of them.
Thank you for taking the time to do this for all of us small business owners. You make a dream become reality.
WOW, this comment means so much to me. I am glad that you took the time to write it and share it with our community. Thanks for watching :)
Best Channel Ever!
Awesome quality and informative video, Thank you very much. Dream car is a gtr & hellcat.
Great info thanks
Thanks for the info bruh. After watching this I think leasing is the better option for me.
For me actual expenses has exceeded standard deduction since 1978.
The most deduction you can get is if your business can justify buying the car and it is for business use.
Awesome video - Thanks alot!
No problem Michael, I hope you consider subscribing
Liked and subscribed. Preciate it!!
Thanks for the sub!
Taking my business serious this late in 2021 and from this point on, this was a perfect recommendation from TH-cam as I’m a mobile diesel mechanic 👨🏽🔧
Okay! This a lot of good information!
Glad it was helpful!
Great content
thank you keep make videos like this
Absolutely will as long as you keep watching!
thank you you explained this so well
This was perfect for you as a mobile DJ!
@@LYFEAccounting for sure want more information
If anyone needs business decals for their car in California lmk, I’m a vinyl wrapper and we can print out anything you need and the wrap is also removable so you can protect your precious paint as well 😇
Plug talk
ALREADY SUBSCRIBED... LET'S NETWORK...
@@MariaRodriguez-qp6op of course, let’s do it. What did you have in mind?
@@wraptonic Marketing, Networking, Merchandise & Collaborations on the East Coast
Where in California?
Oh, honey. My wheels are spinning, in a great way. Thanks for the awesome content!
Thanks for watching! What’s are you plotting? 👀
Very valuable. Did this for 2021 and saved over $30,000 in taxes. Thank you!
What kind of vehicle did you purchase?
I know I subscribed for a reason. My dream car is the hardtop convertible Range Rover
This guy needs more love
Thank you so much ❤️
You’re welcome 😊
Bro I learned a lot wtf!! information is soo basic and simple but never would of thought of
Happy to help! Be sure to checkout our other videos to fill in any gaps.
Sir you are a lyfe saver 🙌🏿 thank you
No problem!
For real...like Sir is this really true..thanks for knowledge.
You’re so welcome!
@@territhomasthon5628 you don't have a comment above. 🤔
In Virginia, if you claim a vehicle as business your personal property taxes go way up--thousands for an expensive vehicle. The tax offset may still be beneficial, but be aware of how localities try to bite back.
That's a write off as well also.
Excellent video. Goal of a model 3 Tesla for 2022! Using actual expenses for gig work :)
Thank you and best of luck to you! 💯
That’s crazy. I wish I was smarter to start a business and take advantage of this. But I’m a humble layman
I forgot about this…. And I needed a new large sedan car or even Sprinter van for business.
We own a business and have several other cars and trucks as personal vehicles.
Thanks.
You've definitely got to take advantage!
The newest Cadillac escalade with Super Cruise technology!!
For my personal Private Uber business!!
The purple Rolls Royce Phantom!!!! It’s the business!!!
2022 Freightliner M2 Business Class Extended Cab RollBack with a 21ft Miller Chassis! (Don’t know if Tow Trucks qualify but I’m putting it in the Universe)
Cheers!
I mean that sounds like a utility truck to me. Just saying
---Accountant
I got the answer thank you in the video!
You're welcome!
Hi! Do I apply section 179 per vehicle? Also, which depreciation method is best for semis?
Really liking the 22-23 GMC Denali 2500 AT4.
G-wagon is my dream car .I just started small cake business thank you for the information 🙏🙏🙏❤️
Be careful with this guy's advice. He's failing to mention that Section 179 is still limited by the higher Section 162 that says expenses need to be ordinary and necessary. Try explaining during an audit that you NEEDED a g wagon for cakes.
@@mtigress4589 all she has to do is get her car wrapped with her business logo & say it's for marketing.
@@BeshEntertainment That's not true. These personalities make it seem like it's that simple but it's not. They play the odds of the return coming under audit.
@@mtigress4589 G-Wagon grabs attention great for advertisement.
@@Kay.D to that point it would be asked how often is it being driven just to advertise. How big is the company info on the car. Who drives it for hours without mixing with personal errands at the same time. My problem with this video is they are trying to sell the idea of writing off your dream car for business but most ppl would like to drive their dream car recreationally. Ppl popped for audit aren't going to be able to get out of a huge bill saying a video gave me this advice.
My professor did this with his car, his suits, his phone, everything! Genius
Please, explain how as a professor, he wrote off his expenses as a business? Hmmmm
@@judyhall5624 he owns businesses outside of his professor role
Stopped the video like 1 minute in. So I can't do any of this unless I have a business. Got it.
You can form an llc and then contract yourself, and pay the llc and then pay yourself
So the key is to identify if you’ll have a huge tax bill so you can use that strategy. If not you’ll be coming out of pocket to make those payments?
Can you use accelerated depreciation and a mileage rate deduction at the same time in one year?
This is good stuff. Im looking at getting the new Escalade. I think Im gonna give this a shot. Should I lease it vs buy?
Hi, if I’m interested in using tax code section 179, does the vehicle need to be purchased under the business entity?
Can you write off electricity costs for EVs? Also can you write off over mileage expense on leases when using the cost approach?
If my LLC made $100,000 net profit, and I want to offset that with a Dodge Ram truck costing $50,000 (not clear if that is considered a "utility truck" or what defines that term). I can purchase one for cash, and deduct all $50,000? What is the 30-40% you mentioned?
I have had 2 G550’s but never bought one new. I have a 2021 coming in late October and am going to use section 179 and accelerated depreciation. Did this with an F250 platinum for my property co this year.
When you write the car off in October will u receive the money back the same year ?
@@Awakened_journeyz you don’t receive money back, you just have it negate that amount of tax liability. Meaning if you owe $30,000 in taxes and can deduct $20,000 through a vehicle, you’d only owe $10,000.
@@bebin73 Wasn't sure if I could write off a Truck for an investment property. Thanks
@@716swaggstar as long as an llc owns the property and truck, and you have legitimate need for a truck in order to run the business
What if you write off the car under section 179 and after 2 years you trade it in. Would that excelerated depreciation still need to be paid?
My dream car is 1947 Chevy fleetwood . But I like the Bentley and TAHOE
Does this purchase have to be with a New Car? or can you still receive this deduction with a used car purchase that is over 6000 pounds and described as utility van?
Hi great video, does the vehicle have to be in the company name in order to write off the lease payments?
You are the best
Thanks :)
Cadillac 600 I'm going all in!
Does the business need to own the car (title and loan) or does this work if I personally own the car. I just bought a car that weighs over 6000 gvwr
Can you use 1 car/truck for multiple business? Maybe if you were to have a seasonal business or 2 business that require the same vehicle. Or would I have to get 2 separate veichles?
Hey love the channel! Was wondering if you're planning to use a vehicle to write of for sec 179; does the vehicle have to be from the same year? Ex: can I write off a 2018 Model x for calender year 2021?
Bonus depreciation can be used for both used and new assets, as long as the asset is new to you.
I am a realtor and my dream vehicle is the 2021 Cadillac Platinum
If you write off 100% of the vehicle using code 179 in 2022, are you still eligible to use the standard mileage rate deduction on that same car in subsequent years?
nice guy!
Just found your channel and due to move from England to US soon. Such great , clear, concise content. Taxes are a nightmare to understand as it’s all so different over there. How do I hire you guys to sort it all out? I will be a business owner and home owner over there.
Thanks. We are not taking on new clients at the moment, but continue watching and asking questions.
Great content! I have a couple of questions if you don't mind?
1. What if you have a full-time job, but have an LLC for a side business that has two licensed owners, but one of those owners (me) uses their personal vehicle to make sales calls to try to earn business. Can I track mileage and wear/tear on my personal vehicle while making sales calls? 2. What impact would this have on my personal taxes if doing so, considering I also have a full-time job?
1. You can just track the business related miles as he showed in the video. If you want to track actual expenses you can use the miles method.
2. Yes it will have an impact. Typically in a positive way, but consult with your CPA who knows your personal situation.
I got a few questions my man
I have a full time job. Pay traditional taxes.
I started doing DoorDash on the side and I’ve been tracking my miles.
1) how can I prove to the IRS about my deliveries if I got audited ? I’ve been just logging the mileage
2) how would it affect my “traditional taxes” from my main job?
Thank you in advance. I might buy a Lambo to door dash in 😎
Thanks for the quality vid / info! Quick question: Can you use the standard mileage deduction for a car that is used to rent to Turo customers? I would own the car that rents on Turo, but would not be driving it myself perse. Thanks.
Thanks for watching. Do you pay the fuel costs for your customers?
This is a question I have too!? Can I deduct 179 code on a 6000+ that I’m renting on turo?
I want to see the answer to this. bump
Thanks for video!
If I only use 20 percent for business use, can I claim standard mile or section 179 or bonus depreciation?
Thanks for the video. Loved the bonus tips. On the 179. What if I buy a G63, accelerate depreciation in 1 year, but I only use the car for business 75% of the time? Also, is the depreciation schedule 5 years? Meaning, depreciation recapture would not apply afterwards?
You have to prove you use the vehicle for business travel at least 51% of the time
Commuting to your business doesn't count
Can you combine standard mileage and the actual expenses or you have to choose one or the other
So if u use section 179 cam u still put petrol bills as a business expense and get that paid for or no?
Thinking I might just get a G Wagon for my business‼️🙏