Great video!! One more note: if you take expenses first year, you can't switch to mileage for another year. You can only use the expense method on that vehicle thereafter. IRS: To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.
Keep in mind that if you sell (or trade-in) a vehicle you have been deducting depreciation, then you may have to recapture that depreciation. For example, you bought a vehicle for $30,000, and over the years have depreciated 100% of the cost. Now you trade it in and receive a $10,000 value for the trade-in. That $10,000 will be taxable income, taxed at your ordinary tax rate.
I think if you have it over 5 years then that doesn’t apply but no Tax advice here, I just know you need to keep it for 5 years and use it for business
@@brockallstate The IRS doesn't care how long you own the vehicle. The 5 years refers to how long you can depreciate (in other words, after 5 years the adjusted basis is 0). But whether you own it 1 year or 10 years, if you sell or trade-in for more than the adjusted basis, then the difference is taxable income.
I bought a commercial box truck this year and plan to lease it to a business, so it will be 100% business use. If I understand correctly, I can take the depreciation because I'm not using the vehicle for personal use, and the business can take the standard mileage deduction. I own a small percentage in the business.
If you're leasing your truck to the business, then it will be deductible by the business and then income to you personally. Since you only own a small percentage of the business, you'll probably substantially increase your income by more than the deduction. An alternative option is using it for business use, and getting reimbursed for the mileage from the business under an accountable plan if it's a Corporation (C or S). That would create a deduction on the business and no income to you personally if implemented correctly.
You are amazing. So professional, concise, clear, thorough - just wow! If I still owned my medium sized business, I would be calling you right now. Alas, I am “retired”.
@@LYFEAccounting How does it work if I wanted to do Lyft for 2 years and not 6 years. Like would you just have to pay what has not been depreciated for the car (say first year was 11k and second year 7k ir would I have to pay taxes on 12k (like 3k at a 25% business tax rate) when selling/giving /closing the business and paying income tax on 12k for the personal which would be another 3k. Or do you just have to do a standard mileage deduction for a 2 year business plan. I was thinking about getting a car only for Lyft except 1 trip per year for Christmas or if other car breaks down would it be better to pay Lyft for the one 300 mile trip and keep it at 100% and eat 600 and get paid 300 out of it (or risk taking a 20 year car no optimal). I live near the airport would I be allowed to try and find a ride toward my dad's house chill for a few hours and try to find a ride back to the airport. I would rather deal with airport people cause you don't really have to worry about half the shenanigans. And my aunt and dad live out in the rich area of town where the people are way more likely to travel by air, so it would be probably a 1/4 of the rides I would give. I'm just wondering if it's even feasible to go the business route for 2 years, if you can look for ways to get where you want like say if I see a ride to the beach amusement park or mountains quickly pack a bag and make a vaccination out of it for the day, and try to find a ride back the way you came a few hours later (I don't do vacations as when you have to spend hours driving paying for gas it does not really feel like a vacation but if I'm already their for work sounds the real shitty part of the vacation is done 😂 only other shitty part is figuring out to do with dog but if I'm their for work 4 hours on the beach and drive home was not a waste of time)
Please explain what you mean by you cannot use this to put you in a loss at 9:05 in the video. Example: If I have $25,000 total business income, and $5,000 of other expenses, that gives me a net profit of $20,000 without the car. Then, taking the $25,000 car deduction would put me at a $5,000 loss. So does that mean I can't use it? Or can I only use as much as it takes to put the business to zero (so only taking $20,000 deduction for the car)?
This is just make easier understanding for person like me who not familiar with TAX vocabulary 😂. Thank you so much. So basically, can use either one of strategy, not both ? Depending on your situation. Correct? What if i use mileage method. Can i use expenses on fixing that car during driving to do my business and tired got flat? It happened to me. 😅. Thank you.
Great video. I do have a unique scenario. I recently purchased a personal vehicle that is over 6000 pounds. I listed the car on Turo one month after buying it and I made less than $1k between June and December. This car was used 60% for Turo business and 40% personal. I do have a second car for personal use. Towards the end of 2023, I had to do maintenance on it after the last rental due to malfunction of the suspension and it cost over $6k and I also bought new tires and rims for about $2.5K. How can I claim bonus deduction on this vehicle and other 179 expenses even though this car is not in any of my small businesses?
I'm confused about the 179 deduction, or maybe you cleared it up for me. I kept hearing about a $28k cap for 2024 vs being able to write off the full purchase price in year 1? ....or is this $28k cap specifically for Bonus Depreciation and people can still write off the full purchase price in year 1? ....asking if I buy a 6000lb vehicle in 2024 (for business use within our S-Corp)?
Right? We never see this... It's always just an explanation with these channels. I want to SEE the process, not just hear about it. But I get it, they want you to buy their services 🤷🏾♀️
If you want to depreciate your vehicle for your SIDE business but apply the depreciation to your PERSONAL tax income (main job), do you buy it with youer personal fiance or do you buy it through your LLC business?
Unless you elect to have your LLC taxed as an S-Corp, the IRS views your single-member LLC as a sole proprietorship. So it would not matter if you bought the vehicle under your name or the name of the LLC. You will only be able to depreciate based on business use, not personal use.
Does the vehicle need to be purchased under your s Corp or LLC name? Or can it be bought in your name and written off when filing? Say if the business is brand-new and hasn't built credit. Also what's the best way to build credit in business name? Apply for a credit card in the name of the company???
Thank you for what you do. I used a Truck for 100% Business. The truck is in my name, not under the business name. I understand Actual vs. mileage. Can I claim the Depreciation over 5 years even if the Truck is NOT under the LLC name? PLUS, the actual or mileage, whichever one benefits me the most?
Just got done talking with my CPA 2 days ago. He said overall for our situation, standard mileage is the best. Was hoping I could talk my wife into a new tesla and writing off the lease. But hey, gotta do what is best for business
It depends on if you have more miles. Sometimes standard mileage is better, sometimes depreciation is better. But if you have a qualified Tesla, you can get the EV credit in addition to whatever method you use (depreciation or mileage)
Thanks for video it is very informative, have question if you 100 % deduct the value of you car, can you use car for personal reasons, and can you buy second car and not use already 100% deducted car? Thanks
Question: if you have a vehicle under 6000 lbs and it costed you $100k, per the depreciation, you won’t be able to depreciate entirely by year 6. What will happen in year 7 and going forward
great content! I have one question. If you have an LLC with business expenses and tax deductions, can those deductions be applied to both business income as well as W2 income?
@@dimedavispresentstalkyospitI'm starting a single person LLC in 2024. So paying myself is just done via W2, would a vehicle used say 30% personal have any tax advantages on personal income-tax?I'm talking with buddies in successful businesses who told me my hobbiest status and then sole prop in business was leaving money in the table and I was basically being double taxed as a hobbiest because I was collecting taxes on sales via Etsy but also paying taxes on all my materials, expendables and other supplies. Even vehicle I'm using. I'm setting up my office in a location outside of my house and my manufacturing end of things is a 20 mile drive from my office which I would be going to either nearly daily. So to and from home to office/shop isn't a write off but office to shop or shop to office is. Same with traveling to events. I'm trying to understand all this. I went from making knives/tools for fun after some injuries in an accident and it snowballed into starting to make money from word of mouth. I believe this is a great opportunity for growth in 2024. I just want to make sure I do it correctly and not leave money on the table and also not get in the hole with the IRS. SORRY for the rambling response lol. Just trying to sort through all this and get setup asap.
Thank you for the information. I use an accountable plan to reimburse me for my vehicle's gas, repairs, insurance, etc. Do I claim the depreciation under an accountable plan or when I file my taxes annually, is there a place to claim the deduction?
If you take bonus depreciation in the first year, does that affect the depreciation amounts for years 2-6? Also, if I’m understanding correctly, if you use section 179 and the purchase price of the vehicle is covered at 100%, you can still use bonus depreciation?
So words mean things. He states own. To me, own means I went to the seller and I paid 100% of the price. Ownership does not mean I went to the seller with a bank loan. In this instance I don't own the vehicle. The bank does. Do I understand this correctly?
So in order to use section 179 for heavy vehicles, your business has to have made a profit if I heard that correctly. Meaning if I started my business this month, bought a used pickup truck for $40k, I’d have to make over $40k by the end of the year? Or am I mixing them up?
Starting a new small business. Need a van under 6,000 lbs to do the job. 80% business usage. Should I buy the vehicle in the business name, or my personal name and then Lisa to the business?
How does this work if your business doesnt have any income for the year? If im leasing a vehicle for both personal and business but the business ends up not earning anything, can I still take the deduction? would it just reduce my total taxable income? thanks
Thanks for the amazing video! You are explaining really well. I am planning to buy a Tesla under my business so that I can write it off. Can I still get the $7500 tax credit for my personal tax return?
I have a question? What tax rite-off can I receive if I work for someone and I am using my vehicle 100% for another person's business. I am also using all of my own tools that I purchased to do my work for this company. My truck recently was put out of commission because I used it for my job and the cost to fix it would not be reasonable. So I purchased a new vehicle so I could use this for work. What deductions am I intitled to?
I thought the maximum 179 deductible for heavy vehicles is $28,900. Not $25,000, before bonus depreciation. I didn’t know you could use section 179 combined with bonus depreciation. This is something new I am learning.
I purchased a vehicle at end of October for business that I'm starting this March it's 10,000 lbs but I didn't show a profit last year because was too cold to work. Would I still be able to do the section 179?
Yes. Have your cpa move the vehicles depreciation (if it's over 6k lbs) or your lease payments and/or standard miles (if under 6k lbs) to the current year. You have a 5 year window that you can move forward and backwards depending on where you want the depreciation savings. Hope this helps!
Can you provide more info and an example for Section 179: Must Show profit or position of income? I work full time, however, I'm thinking of Ridesharing again. If my income is $25,000 from the rideshare before deductibles, but I use standard deductions of miles etc I may get down to $10,000. Then if I want to apply section 179, and it brings me to a "loss" can I still do that?
So if I’m purchasing a super duty ford , I can fully write it off and since it will be 100% business related ( everyday necessity hauling ) choosing the mileage method would benefit my business significantly?
Awesome video great information I have a question My kid took a internship out of state Had to get a apartment and everything The internship wages not good at all Is there a way she can claim all her expenses ?
Is there any difference in the rules around rental fleets of motorcycles versus cars/passenger vehicles. If so what are the guidelines for depreciation on motorcycles being used under a sole proprietorship LLC?
Question! What if I pay $25k cash for a vehicle, is that beneficial or not if so should I do a check or cash. Because I know the IRS check it if it’s a purchase above $9,999. Please let me know asap as I am currently trying to buy a Ford transit. The vehicle will be strictly for business and I do have a separate business account if that’s helpful information.
Great video... If I purchased SUV over 6000 lb like Tahoe for business purposes 75% time for $60,000 25% bracket. Using 179 I can write off $15,000 is that correct? Also can I use Standard Milage deduction in 2024 as well or the 60K write off is the max I can get
This is great information! To put a vehicle under your business name do you have to get a business auto loan or can you get a personal auto loan when purchasing a vehicle?
You can get a business auto loan or personal auto loan. The key is if you use a personal auto loan, make sure you set up the monthly auto payments to come out of a business checking account. After a year of payments being made from your business checking you are also allowed to have it stop being reported on your personal credit report.
Do I register at local rmv or do I have to go to Boston to register ? The car dealer had no idea and mention having to go to Boston as ask to be register there
Say I buy a 50k (heave vehicle) in 2023, Then later in 2023, I end up closing business. Am I able to 179 it in 2023? Does depreciation recapture mess that up?
Im new to tax deductions. So if you get a deduction of $16,375 like you mentioned, would you be getting that back? how does that work? I think you get it back but my wife thinks they wont give anyone that much money back. Thanks
So if i already own the vehicle but my business is new, i can still count the depresiation rates mentioned as well as the standard mileage rate of .655/mi? But what about purchasing brake pads on the company account? Just dont list the expense as a deductible?
do you have to buy the vehicle in 2023 to qualify for depreciation? everyone says year 1 but I'm not sure if that means the first year of depreciation or first year of ownership of the vehicle.
My wife is Real Estate Professional Status (no W-2 income). She plans on purchasing a Tesla Model X before the end of the year for her business purposes. I'm assuming we'll be able to take advantage of Section 179 and Bonus Depreciation to offset my W-2 income and "soften" our tax burden when filing as Married-Filing Jointly. Is that a correct assumption?
Great video!! One more note: if you take expenses first year, you can't switch to mileage for another year. You can only use the expense method on that vehicle thereafter. IRS: To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.
But what about if I wrote off 2500 on 2022 can I write off the other 50k on 2023?
So then if I buy a new car and use the depreciation write off, how long until I can switch over to the standatd mileage deduction?
Keep in mind that if you sell (or trade-in) a vehicle you have been deducting depreciation, then you may have to recapture that depreciation. For example, you bought a vehicle for $30,000, and over the years have depreciated 100% of the cost. Now you trade it in and receive a $10,000 value for the trade-in. That $10,000 will be taxable income, taxed at your ordinary tax rate.
I think if you have it over 5 years then that doesn’t apply but no
Tax advice here, I just know you need to keep it for 5 years and use it for business
@@brockallstate The IRS doesn't care how long you own the vehicle. The 5 years refers to how long you can depreciate (in other words, after 5 years the adjusted basis is 0). But whether you own it 1 year or 10 years, if you sell or trade-in for more than the adjusted basis, then the difference is taxable income.
What if I gift the vehicle for my family relative for $0?
I bought a commercial box truck this year and plan to lease it to a business, so it will be 100% business use. If I understand correctly, I can take the depreciation because I'm not using the vehicle for personal use, and the business can take the standard mileage deduction. I own a small percentage in the business.
If you're leasing your truck to the business, then it will be deductible by the business and then income to you personally. Since you only own a small percentage of the business, you'll probably substantially increase your income by more than the deduction. An alternative option is using it for business use, and getting reimbursed for the mileage from the business under an accountable plan if it's a Corporation (C or S). That would create a deduction on the business and no income to you personally if implemented correctly.
Ty for dropping these jewels... easily explained with visual effects
Such a valuable breakdown - thank you!
Yes please, I would love a video about how to deduct traveling expenses!
You are amazing. So professional, concise, clear, thorough - just wow! If I still owned my medium sized business, I would be calling you right now. Alas, I am “retired”.
Great video! This is the most thorough explanation that I've seen
Wow, thanks!
@@LYFEAccounting i don't see anyone talk about if you can write off a downpayment for a personal car you use for business
@@LYFEAccounting😢
@@LYFEAccounting How does it work if I wanted to do Lyft for 2 years and not 6 years. Like would you just have to pay what has not been depreciated for the car (say first year was 11k and second year 7k ir would I have to pay taxes on 12k (like 3k at a 25% business tax rate) when selling/giving /closing the business and paying income tax on 12k for the personal which would be another 3k. Or do you just have to do a standard mileage deduction for a 2 year business plan. I was thinking about getting a car only for Lyft except 1 trip per year for Christmas or if other car breaks down would it be better to pay Lyft for the one 300 mile trip and keep it at 100% and eat 600 and get paid 300 out of it (or risk taking a 20 year car no optimal). I live near the airport would I be allowed to try and find a ride toward my dad's house chill for a few hours and try to find a ride back to the airport. I would rather deal with airport people cause you don't really have to worry about half the shenanigans. And my aunt and dad live out in the rich area of town where the people are way more likely to travel by air, so it would be probably a 1/4 of the rides I would give. I'm just wondering if it's even feasible to go the business route for 2 years, if you can look for ways to get where you want like say if I see a ride to the beach amusement park or mountains quickly pack a bag and make a vaccination out of it for the day, and try to find a ride back the way you came a few hours later (I don't do vacations as when you have to spend hours driving paying for gas it does not really feel like a vacation but if I'm already their for work sounds the real shitty part of the vacation is done 😂 only other shitty part is figuring out to do with dog but if I'm their for work 4 hours on the beach and drive home was not a waste of time)
Brother I am sold. I will be calling you for my business and personal tax needs. We have been looking for a new CPA.
You Broke this Down the Best…..MVP💚🔋📶
Yes..do a vid on the expenses please
Job well done! Much appreciate the timely and relevant content, delivery, time stamps (chapters), and you. Keep at it.
Please do a video on travel expenses TY in advance
Please explain what you mean by you cannot use this to put you in a loss at 9:05 in the video. Example: If I have $25,000 total business income, and $5,000 of other expenses, that gives me a net profit of $20,000 without the car. Then, taking the $25,000 car deduction would put me at a $5,000 loss. So does that mean I can't use it? Or can I only use as much as it takes to put the business to zero (so only taking $20,000 deduction for the car)?
Amazing...your video is very helpful with the notes and examples. Thanks!
BTW thanks for doing this! Your helping the little guy while hopefully adding a lil jingle to your pocket. Good on you!
Killing it with that suit! Looks awesome on you!
That means alot, thank you!
Thank you for clear cut tax information. You explain it well.
Please do a video about deducting business travel expenses
This is just make easier understanding for person like me who not familiar with TAX vocabulary 😂. Thank you so much. So basically, can use either one of strategy, not both ? Depending on your situation. Correct? What if i use mileage method. Can i use expenses on fixing that car during driving to do my business and tired got flat? It happened to me. 😅. Thank you.
Yes, a video on deducting business travel expenses would be helpful
This was amazingly helpful. Thank you so much!
Great video. Please make a video on how to deduct travel expenses.
When you say own a vehicle and not lease, we bought our vehicle and it is financed and we are making payments, does this mean we "own" it?
Great video. I do have a unique scenario. I recently purchased a personal vehicle that is over 6000 pounds. I listed the car on Turo one month after buying it and I made less than $1k between June and December. This car was used 60% for Turo business and 40% personal. I do have a second car for personal use. Towards the end of 2023, I had to do maintenance on it after the last rental due to malfunction of the suspension and it cost over $6k and I also bought new tires and rims for about $2.5K. How can I claim bonus deduction on this vehicle and other 179 expenses even though this car is not in any of my small businesses?
Thank you for posting and providing the right amount of explanation
I'm confused about the 179 deduction, or maybe you cleared it up for me. I kept hearing about a $28k cap for 2024 vs being able to write off the full purchase price in year 1? ....or is this $28k cap specifically for Bonus Depreciation and people can still write off the full purchase price in year 1? ....asking if I buy a 6000lb vehicle in 2024 (for business use within our S-Corp)?
Please make the travel expense video. Thanks for the info. Keep up with what you doing
Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.
Thank you so much for the information. Super helpful ❤
This video is an all videos in the series are extremely helpful! I would love to see a travel expenses breakdown video!
So I get the loan on my personal name or the business name ? And do I register as a combercial vehicle or regular plates?
What tax form would you use for the actual expense method? Can we please see a video of you actually doing it?
Right? We never see this... It's always just an explanation with these channels. I want to SEE the process, not just hear about it. But I get it, they want you to buy their services 🤷🏾♀️
@@Coopogers click bait
1040(schedule c) part 2
if i get my car that i own wrapped with my business logo, is business use 100% because it is always advertising my business ?
Yeah only if you’re not counting the mileage. You either get credit for mileage or credit for expensises
You can write off the cost for the wrap, but that has nothing to due with if you use it for personal or business use...
@@krispy5139how is advertising not a business use
@@leonardtarver149Yeahhhh….that would be a big NO. There is IRS guidance on point
No
Great video. Clear and to the point.
If you want to depreciate your vehicle for your SIDE business but apply the depreciation to your PERSONAL tax income (main job), do you buy it with youer personal fiance or do you buy it through your LLC business?
Unless you elect to have your LLC taxed as an S-Corp, the IRS views your single-member LLC as a sole proprietorship. So it would not matter if you bought the vehicle under your name or the name of the LLC. You will only be able to depreciate based on business use, not personal use.
@@jimtrue1465thank you
Does the vehicle need to be purchased under your s Corp or LLC name? Or can it be bought in your name and written off when filing? Say if the business is brand-new and hasn't built credit. Also what's the best way to build credit in business name? Apply for a credit card in the name of the company???
Home Depot gas cards etc put everything in the business
when you say car you own, should the car be on LLC name or personal name
Please do a video on deducting business travel expenses please.
Great video thank you. Should the money for the car come from business account or can It come from personal.
I am in w2 and have a small aide gig too.
Thank you for what you do.
I used a Truck for 100% Business. The truck is in my name, not under the business name. I understand Actual vs. mileage. Can I claim the Depreciation over 5 years even if the Truck is NOT under the LLC name? PLUS, the actual or mileage, whichever one benefits me the most?
Hi do you do schedule C for Truck drivers and an example of how to figure the depreciation for a Semi
Just got done talking with my CPA 2 days ago. He said overall for our situation, standard mileage is the best. Was hoping I could talk my wife into a new tesla and writing off the lease. But hey, gotta do what is best for business
It depends on if you have more miles. Sometimes standard mileage is better, sometimes depreciation is better. But if you have a qualified Tesla, you can get the EV credit in addition to whatever method you use (depreciation or mileage)
@@Choclocdif you're referring to the federal EV tax credit, this commenter wouldn't get that since they plan to lease
I also add 1 cup sugar and flour too. It feels up the lb cake or Bundt pan.
Good info, thank you
Awesome video! I bought a Nissan Rouge 2019 last December for my business what is Tax Bracket?
I use mines for business… but it’s not in my business name. But I definitely use for business. Definitely need to write this off!!
I would love to see a travel expenses video. Thanks!
Love this 💙
Thank you for doing this video. It was very helpful
Awesome info very grateful greatly appreciated bro
Thanks for video it is very informative, have question if you 100 % deduct the value of you car, can you use car for personal reasons, and can you buy second car and not use already 100% deducted car?
Thanks
would love a video on business travel expenses! ty for this video
Very good video , good information 👍
enjoyed this video. Can you do one for 1st year biz owners on how to cover the first year fees and how to get fast funding
Question: if you have a vehicle under 6000 lbs and it costed you $100k, per the depreciation, you won’t be able to depreciate entirely by year 6. What will happen in year 7 and going forward
Teach me the hardest thing to ask
Ever heard of residual value? Lol
5:15
7:30 section 179
8:11 write off the total cost in a year 1
great content! I have one question. If you have an LLC with business expenses and tax deductions, can those deductions be applied to both business income as well as W2 income?
Normally when it's a single person LLC, you'll file schedule c on your 1040
@@dimedavispresentstalkyospit I have a single person LLC does that mean the dedcutions on my business car can also apply to my W2?
@@dimedavispresentstalkyospitI'm starting a single person LLC in 2024. So paying myself is just done via W2, would a vehicle used say 30% personal have any tax advantages on personal income-tax?I'm talking with buddies in successful businesses who told me my hobbiest status and then sole prop in business was leaving money in the table and I was basically being double taxed as a hobbiest because I was collecting taxes on sales via Etsy but also paying taxes on all my materials, expendables and other supplies. Even vehicle I'm using. I'm setting up my office in a location outside of my house and my manufacturing end of things is a 20 mile drive from my office which I would be going to either nearly daily. So to and from home to office/shop isn't a write off but office to shop or shop to office is. Same with traveling to events. I'm trying to understand all this. I went from making knives/tools for fun after some injuries in an accident and it snowballed into starting to make money from word of mouth. I believe this is a great opportunity for growth in 2024. I just want to make sure I do it correctly and not leave money on the table and also not get in the hole with the IRS.
SORRY for the rambling response lol. Just trying to sort through all this and get setup asap.
Very helpful info, thank you!!
Thank you for the information.
I use an accountable plan to reimburse me for my vehicle's gas, repairs, insurance, etc.
Do I claim the depreciation under an accountable plan or when I file my taxes annually, is there a place to claim the deduction?
If you take bonus depreciation in the first year, does that affect the depreciation amounts for years 2-6?
Also, if I’m understanding correctly, if you use section 179 and the purchase price of the vehicle is covered at 100%, you can still use bonus depreciation?
So words mean things. He states own. To me, own means I went to the seller and I paid 100% of the price. Ownership does not mean I went to the seller with a bank loan. In this instance I don't own the vehicle. The bank does. Do I understand this correctly?
Solid info thank you
So in order to use section 179 for heavy vehicles, your business has to have made a profit if I heard that correctly.
Meaning if I started my business this month, bought a used pickup truck for $40k, I’d have to make over $40k by the end of the year?
Or am I mixing them up?
Great video!
A super video. Nicely explained, thank you😂
Glad you liked it!
Need the travel expenses information please sir great work btw
Starting a new small business. Need a van under 6,000 lbs to do the job. 80% business usage.
Should I buy the vehicle in the business name, or my personal name and then Lisa to the business?
How does this work if your business doesnt have any income for the year? If im leasing a vehicle for both personal and business but the business ends up not earning anything, can I still take the deduction? would it just reduce my total taxable income? thanks
Wondering the same thing. I can’t seem to find this anywhere and will definitely be reporting a loss with all the startup costs I’m incurring.
Roll it over Till next year
@@JuancoPRoFlow Ohh ok thanks 👍
Good video man…!
Does the vehicle need to be under your business name or you as the owner of the LLC can still qualify if it’s under your name?
I need an answer to this too
It can be under your name always do a dba when getting EIN number
YESSS DO VIDEO BOUT TRAVELS EXPENSES PLEASEE SEANNN
Please make a video explaining travel expense deductions. Thank you!
How to deduct travel expenses...Please :) Thank you NJ GREAT Work!!!
Thanks for the amazing video! You are explaining really well. I am planning to buy a Tesla under my business so that I can write it off. Can I still get the $7500 tax credit for my personal tax return?
I have the same question. My S-Corp bought an EV (
Can the 1099 independent contractor write off the car without an LLC and should the 1099 get an LLC?
I have a question? What tax rite-off can I receive if I work for someone and I am using my vehicle 100% for another person's business. I am also using all of my own tools that I purchased to do my work for this company. My truck recently was put out of commission because I used it for my job and the cost to fix it would not be reasonable. So I purchased a new vehicle so I could use this for work. What deductions am I intitled to?
I thought the maximum 179 deductible for heavy vehicles is $28,900. Not $25,000, before bonus depreciation. I didn’t know you could use section 179 combined with bonus depreciation. This is something new I am learning.
could you show & tell on filing video = turbotax.. thanks for all of us..
I purchased a vehicle at end of October for business that I'm starting this March it's 10,000 lbs but I didn't show a profit last year because was too cold to work. Would I still be able to do the section 179?
Yes. Have your cpa move the vehicles depreciation (if it's over 6k lbs) or your lease payments and/or standard miles (if under 6k lbs) to the current year. You have a 5 year window that you can move forward and backwards depending on where you want the depreciation savings. Hope this helps!
Did you consider the rise in gas price when you think of 2000 additional with new per mile rate?
Can you provide more info and an example for Section 179: Must Show profit or position of income? I work full time, however, I'm thinking of Ridesharing again. If my income is $25,000 from the rideshare before deductibles, but I use standard deductions of miles etc I may get down to $10,000. Then if I want to apply section 179, and it brings me to a "loss" can I still do that?
So if I’m purchasing a super duty ford , I can fully write it off and since it will be 100% business related ( everyday necessity hauling ) choosing the mileage method would benefit my business significantly?
Thanks sooo much.
Awesome video great information
I have a question
My kid took a internship out of state
Had to get a apartment and everything
The internship wages not good at all
Is there a way she can claim all her expenses ?
Is the vehicle must be own by the company? I mean the title must show the company owns
So if you qualify for section 179 or bonus depreciation, does irs send you a check for the total amount of the vehicle?
Is there any difference in the rules around rental fleets of motorcycles versus cars/passenger vehicles. If so what are the guidelines for depreciation on motorcycles being used under a sole proprietorship LLC?
Question! What if I pay $25k cash for a vehicle, is that beneficial or not if so should I do a check or cash. Because I know the IRS check it if it’s a purchase above $9,999. Please let me know asap as I am currently trying to buy a Ford transit. The vehicle will be strictly for business and I do have a separate business account if that’s helpful information.
Great video... If I purchased SUV over 6000 lb like Tahoe for business purposes 75% time for $60,000 25% bracket. Using 179 I can write off $15,000 is that correct? Also can I use Standard Milage deduction in 2024 as well or the 60K write off is the max I can get
Can I write off the cost of a business vehicle that I paid cash for, or would I have to finance it?
Can this be applied to motorcycles? I’m a motorcycle vlogger. Looking to purchase a new motorcycle for the channel.
This is great information! To put a vehicle under your business name do you have to get a business auto loan or can you get a personal auto loan when purchasing a vehicle?
You can get a business auto loan or personal auto loan. The key is if you use a personal auto loan, make sure you set up the monthly auto payments to come out of a business checking account. After a year of payments being made from your business checking you are also allowed to have it stop being reported on your personal credit report.
Do I register at local rmv or do I have to go to Boston to register ? The car dealer had no idea and mention having to go to Boston as ask to be register there
Say I buy a 50k (heave vehicle) in 2023, Then later in 2023, I end up closing business. Am I able to 179 it in 2023? Does depreciation recapture mess that up?
Yes please make a video about traveling
Yes please make a. travel deductions
Im new to tax deductions. So if you get a deduction of $16,375 like you mentioned, would you be getting that back? how does that work? I think you get it back but my wife thinks they wont give anyone that much money back. Thanks
So if i already own the vehicle but my business is new, i can still count the depresiation rates mentioned as well as the standard mileage rate of .655/mi? But what about purchasing brake pads on the company account? Just dont list the expense as a deductible?
do you have to buy the vehicle in 2023 to qualify for depreciation? everyone says year 1 but I'm not sure if that means the first year of depreciation or first year of ownership of the vehicle.
My wife is Real Estate Professional Status (no W-2 income). She plans on purchasing a Tesla Model X before the end of the year for her business purposes. I'm assuming we'll be able to take advantage of Section 179 and Bonus Depreciation to offset my W-2 income and "soften" our tax burden when filing as Married-Filing Jointly. Is that a correct assumption?
Yes
How much do you charge for tax prep married filing jointly W2 and 1099?