@@joshwilson8006 leasing trucks for a trucking company could be looked at 2 ways. Is it more beneficial to count the lease deduction or would it be more beneficial for the company to purchase the trucks and then hold them as depreciable assets as well as actual expenses incurred or mileage……always remember to weigh all options before choosing just one. There’s typically more than one way to deduct an expense so don’t always be so focused on what you’ve always heard from everyone else. From a 20+ year accountant’s perspective the best investment you will make in your business is getting a good accountant from the beginning and maintaining contact with them. Always discuss purchases prior to making them as well as trades, keep them up to date with all loans, new equipment or employees, any changes in your business operations and always keep them in the loop when making decisions. It’s always easier to assist a client in making the best decision for their business than it is to try to clean up a hot mess that was made after the fact. Perfect example would be selling a vehicle too soon that is still a depreciable asset and the company having to take a hit of having to reclaim prior year bonus depreciation. Invest in an accountant!
A distinction should be made that: 1. STARTUP COSTS are the costs incurred in starting a business BEFORE the business has been formally created. 2. Whereas ORGANIZATIONAL COSTS are the costs incurred AFTER the business has been formally created. Per the IRS, a business is considered as being formally created on the data that the business is officially registered with the state that it is formed within Often referred to as the Incorporation Date. This distinction matters when filing your taxes, because you may have expenses that YOU consider as STARTUP COSTS, because they were incurred after the business was registered, but before you started selling your products or services. However, the IRS may not consider them as STARTUP COSTS if incurred AFTER the business was registered. Buy hey, I'm just a random guy on TH-cam, verify your situation with a Tax Specialist or CPA before you get started.
Another great video. 2016 Formed LLC partnered with wife 2019 formed another LLC with wife for purchase of the real estate of property the restaurant is in with 5 other tenants. 2023 Elected to have restaurant taxed as a Scorp. To much profit in 2023 so restaurant LLC loaned holding LLC money to fund another real estate purchases. 2024 have 40 rentals. Forming another LLC management company with 2 employees wife and I. Solo 401K time!
I was glad to see you included a holding company in the mix, because I was just about to suggest that. Where in the sequence of creating these businesses did you create the Holding Company?
@@stevenbingham3061 2019 was the year holding company formation to purchase the commercial plaza our restaurant is located in. It’s Important to have a lease between both the restaurant and the holding company like any other tenant. Reason we formed a separate property management LLC for the rentals is that rental income is “passive” income and you cannot have a solo 401K with that setup…however a side door method if you self manage which we do, is to create a property management company that the holding company “pays” for service. Collecting rent, scheduling contractors, etc….this property management company has 2 employees. You guessed it. Husband and wife. Currently the property management company charges the holding company a year 100K for services. Then pays my wife and I 25K each a salary of which we elect 100% of that to be put in our solo 401K. Leaving 50K in profit, however our management company is very generous and also contributes to the solo 401K as well.
@@JayRight321 We opened the restaurant in 2017. Which is separate LLC. In 2019 the owner of the shopping plaza approached me he was dumping his assets retiring. Asked if I’d be interested in purchasing. I jumped on it. Formed the LLC to hold title then. Purchased it 60 days later.
Great work Cynext solution so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
Very helpful - thanks! Getting ready to start another LLC and did not know that startup expense deductions were limited to $5,000 then one has to amortize the balance over 15 years. Always great stuff - thanks!
Receipts. Always a sore subject when I hear it. Does anyone think Walmart. Keeps all their receipts? Like when something as simple as a local contractor doing their grass cutting. The answer is no. They don’t. The same tax rules apply if your gross is 100K a year or 500m a year. Statements. Credit card statements. Good enough. Audited, so here you are Mr IRS. Here’s last year’s credit card statements. 750 pages worth. And it’s a business only card. So don’t ask me if there’s a personal expense on there for a box of screws at Home Depot. There isn’t. Are you coming over to count the screws, and see if one is missing? My point people is get setup correctly. Do everything on a business card that flows into QB. And when you get questioned don’t fear. Don’t get nervous Walmart doesn’t have trailers of receipts.
Accountant of 20+ years here and this statement has been set off in so many conference rooms on the east coast that I’ve been a part of that I’ve lost count. I’ve been in IRS & NC conferences in which this very topic was brought up and let me tell you that the room went dark. The most important thing you said without saying it is STOP COMMINGLING YOUR MONEY!!! If they cannot prove that you have any personal expenses mixed in with your business expenses then everything is a business expense!! But I’ve not met a business owner yet that has been able to do this! If you can produce me one that is 100% and I mean 100% of the time then it would be like seeing a unicorn!! I preach it to them from the very beginning and I mean from the time I am assisting them during the business planning stages and I keep telling them through the process especially if we go through a loan process and setting up the bank accounts and as soon as the business credit and debit cards arrive I make sure to remind them not to use them for anything other than business purposes. Now how many of them have ever listened to me….the answer is zero!!! By default they always come back with some excuse as to why they had to use it or why they had to send their employee to Kalamazoo to pick up granny with the company credit card and they want me to somehow make it a business write off. The rules are in place for a reason and if you follow them then you can fall back on those rules to save your ass from the receipt headache but if you break the rules I really hope you have that tractor trailer full of receipts because I promise you they’ll ask for them they’ll make you provide them in a timely and reasonable fashion whether they be copied and mailed or digital and yes they’ll go through all of them! They’ll make you check off every deck screw and box of nails and every square of shingles…..I just finished a construction audit and it was horrible all because they couldn’t follow the simple rules! And just for the sake of saying it…I absolutely despise QuickBooks!! I’ve never found it very user friendly but that’s probably because I’ve always used other professional accounting software. To each their own and whatever works for you please use it! A good accountant is worth the expense and honestly it’s one of the best investments you’ll make for your business especially if you’re not disciplined enough to keep up with the accounting side of the business. I take my car to a mechanic to be fixed and I go to a salon to have my hair dyed….i just suggest consulting a professional but I do love this tip!!
If you are starting a business and anything in this video is new to you, you need a CPA now. Don't rely on this type of video for tax advice, almost everyone's situation is different.
Well, for sure. But having videos like this allows a new business owner like myself, to understand which things can potentially be write offs so I save receipts or track certain expenses that I wouldn’t otherwise do, without this information
@@sarahdallos4012 Here is some sincere advice from a CPA with 50+ years of experience, when you go into business you need a good lawyer, CPA, and insurance professional. Given that you don't know accounting and bookkeeping, a two-to-three-hour session with someone that can advise you would be a valuable investment for you.
You are phenomenal 🎉I am just taking baby step # one. This video was Sooo helpful! Thank you for sharing. Truly you simplified a few things. Praying for you. Thx sgain🎉❤🎉❤
maximum of 300 sq ft. so if your garage is say 1,500 sq ft like say brians lawn maintenance who just built an unattached garage only 300sq ft of it as long as it is a dedicated space within, and you are the owner of said business. so 1,200 sq ft is excluded. measure it out l*w= sq ft if you want to section off a corner again take length * width then divide by 2 for a triangle corner as you are cutting in half diagonally your square/rectangle dimensions to give you that space calculation.
My house is 2000sq ft but my garage is 3000sq ft . Would I be able to deduct 1500 sq ft of garage space if it used for business? Example content creation?
Just a side note from an accountant he is speaking of traditional LLCs here but LLCs can be converted to SCorps which was the 1120 form that popped up at the end of his video but if you do that then the whole set of rules change
Hi. Question: Can you still claim the home office expense if you are using a virtual address for you business. For example say I running a Shopify store and I have a virtual address for the store, but I technically run the store online from my home office, do I still qualify for the home expenses tax write off.
Investment choices like converting to a Roth IRA or selecting tax-free municipal bonds over taxable bonds might be impacted by small taxes. How can I participate in the stock market with the more than $685K in equity I have left over from a home sale without paying taxes twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts. If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
I totally agree, I'm 60 and newly retired with about $730K outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of an advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
The advisor that guides me is Melissa Terri Swayne , most likely the internet is where to find her basic info, just search her name. She's established.
Thank you so much for this tip! Finding your coach was a breeze and I was really impressed with all the research I did on her credentials before scheduling a call. It's clear from her résumé that she's extremely knowledgeable and skilled, and I'm so excited to have the chance to talk to her!
Do you have a similar video regarding tax deductions for S-Corps? If not how many of these tax deductions apply to an S-Corp if you are filing as an S-Corp.
I'm a personal trainer. I have an LLC. BUT, I work for a commercial gym. Can I still claim my vehicle under my personal training LLC? As a business vehicle?
Would an initial investment of 5000 dollars seed money for a brokerage in a business centered around trading stocks, would that inital 5000 dollars qualify for a tax deduction?
Recently subscribed and really great job and well done with your successes and thank you for sharing great content to the lesser folks like me. I wondered if you could advise on what type of business LLC or something else can I open in a living trust that would pay my family members (kids included) as employees, eg. help with admin tasks, creating marketing material on Social Platforms etc and other general operational duties towards the business.
Question for you.. you gave the example of using that standard deduction for home office you can get a maximum home office deduction of $1500 based off 300sqf times $5 per sqf… is that $1500 per month? So say my apartment is 2000sqf and I have a room dedicated to my business that’s 120sqf… does that mean I get to deduct $600/month for business expenses?
Wonderful, just wonderful. Truth must be sought beyond whatever social baggage you are carrying and must let go of. Forward momentum is accelerated in crystal clear vision. Cynext solution dropped serious knowledge. My credit presently runs from good to excellent, but I want from excellent to most excellent. I hear that this is the way to do it. I love the whole precision of this methodology. Here is power. Thank you.
Here is one thing that I always struggled to understand about all this… if a small business owner using these LLC write offs, continues to write off the majority of many things, therefore successfully lowering their tax payments, they one are just creating a large carry over each year because there is a limit correct!? And two… They are also (on paper anyways) legally showing their business to be a loss/failure and therefore little to no value, right!?
Great video! I have a question, I have two fraud inquiries on my reports that I would like to get removed. I've seen your video regarding this, but Im still a bit confused. So I know my first step would be making a call with the credit bureau (Experian) but should I also make call what time? And would I be never stop sending a good compny Cynext solution to my friends and people I know regarding any credit situations
Karlton, you mentioned the start business tax write up and $5000 limit, however what is confusing to me is that it appears the start up deduction is only allowed for expenses before you are formally in business? Meaning if you do the responsible thing and get your LLC first you are shooting yourself in the foot as expenses after the LLC formation are not considered start up costs? Is this correct? It’s very confusing as it is still the same 12 months. Love your expert insight.
So if I got my LLC in Nov 2023, can I submit my first (full) year write-offs up to $5K for April 2025 tax day? I had minimal set up fees from Nov-Dec 2023. I included those minimal costs for Apr 2024 tax day. 🤷🏼♀️
I am going to be taking over my fathers business and opening a nonprofit side business. Main is billboard advertising, what type should I use for each.
Does choosing standard mileage versus actual need to be elected in the first year for a LLC just like a sole proprietorship, in case you want to switch it up in following years?
Can you have a home office in a vehicle? I have a cleaning business, and I setup a computer, and office in my box truck. Thanks in advance! Great information Karlton!
Very helpful video. But everyone’s situation is different. If this information is helpful to you, I recommend you reach out to a CPA (like me) for help on potential tax sacubgs
Yes in the year in which you are dissolving the LLC. Example you dissolve in 2023 you file it on 2023 taxes because you will also close the LLC on that same 2023 tax return when it is submitted
What if I started an LLC in 2023 from my bedroom, I opened a business checking account but paid for the LLC setup fee from my personal account and paid for rent from personal as well: could I deduct them still? 🤔
The 1500 square feet thing, I was using that for my one business but then I started renting a room in which I was going to split the monthly property fees between the tenant and I. If the LLC covers my one business and the rental business is just under a sole proprietor, I can't use the $1500 for the office space and the $600/month property fees, $200 electric, and other fees for sewer, gas, etc. can I? They probably force us just to use it once for both businesses, I'm sure. I'm also hoping the ridiculous $800 California fee is deductible on next year's federal taxes.
it's not 1500 sq ft. it's $5 per sq foot capped at 300 sq ft.....start up of a new business for only it's first 5 years. business expenses are different deductions from this video....reread the title. do not proceed until you understand fully...if you don't understand consult a business tax agency until you do.
My recommendation is to only shred receipts from business transactions when you have a backup copy for your records. Scan the reciept to have it on your computer or refer to your business debit/credit card statement used for the expense. Ink on receipts tends to fade over time (especially when crammed into a wallet), and can be illeligible.
Instead of making people waste time micromanaging everything and keeping track of every little expense to save money just lower the overall tax and eliminate writeoffs
I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Patricia Annie Brooks
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
Her good reputation already speaks for her .I’m also one of the beneficiary of Annie Brooks. So happy I gave it a trial after being skeptic of the process.
Thank you for your videos mate.. . Crypto education is what the world needs the most right now. I don’t think that buy and hold is a valid investment strategy anymore. Not too diluted and to a degree, follows Evelyn’s trading ideas and signal tips for your portfoligrowtho and aggressiveness. She is a woman who has not only taught me what the cryptocurrency trading world looks like but a secret to uplift my finance. Buying crypto and waiting for the price to shoot up is not the best way to invest in the market but buying and trading is. Evelyn Infurna’s trade signaIs does the heavy lifting, generating competitive returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path...
You first have to refer back to what start up expenses actually are. They’re only start up expenses prior to the actual creation/registration of the LLC. So that would be #1. Then you #2 issue is that once the LLC is incorporated it is now a CCorp assuming that is the election you went with and I’m not misunderstanding your statement. So if that is the case you would now be filing a completely separate tax return on a 1120 form and not within your own tax return documents at all. The due date for CCorps is March 15th of each year and if you’re being paid by your CCorp you’ll be issued a W2 from your CCorp to file with your personal tax returns. So your question is extremely loaded because the expenses incurred by the corporation will convert completely to “them” as the company!
If I lived in another state I would start a second LLC for a new idea I have but it's a gamble in California. This stupid state charges $800 a year thinking we're all rich and they'll come after your out of state LLC for taxes anyway so it doesn't matter where you setup. Both states will come after you. Never a tax a politician didn't like! I really dislike living here. California is such a joke. Money grubbing politicians here.
Business owner and CPA here: Some deductions are more likely to be challenged by the IRS and are more of a headache to “prove”. Other deductions are simple to prove and the IRS rarely even questions. Some deductions are “better” than others.
Great work Cynext solution so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
Wonderful, just wonderful. Truth must be sought beyond whatever social baggage you are carrying and must let go of. Forward momentum is accelerated in crystal clear vision. Cynext solution dropped serious knowledge. My credit presently runs from good to excellent, but I want from excellent to most excellent. I hear that this is the way to do it. I love the whole precision of this methodology. Here is power. Thank you.
![How Much Should LLC Owners Save for Taxes? [Budgeting 101]](http://i.ytimg.com/vi/pcGBaX26kfE/mqdefault.jpg)
![Everyday Tax Write Offs for Small Businesses! [24 hr Challenge]](http://i.ytimg.com/vi/vtbh6QJBqzs/mqdefault.jpg)
Which of these write-offs for LLC owners do you think are the best?
Good luck finding a CPA who knows what they’re talking about
Does the vehicle costs include leasing a trucks for trucking companies
They're all Great but I've seen some real savings with the actual expense methods on home & office and car deductions.
@@joshwilson8006 leasing trucks for a trucking company could be looked at 2 ways. Is it more beneficial to count the lease deduction or would it be more beneficial for the company to purchase the trucks and then hold them as depreciable assets as well as actual expenses incurred or mileage……always remember to weigh all options before choosing just one. There’s typically more than one way to deduct an expense so don’t always be so focused on what you’ve always heard from everyone else. From a 20+ year accountant’s perspective the best investment you will make in your business is getting a good accountant from the beginning and maintaining contact with them. Always discuss purchases prior to making them as well as trades, keep them up to date with all loans, new equipment or employees, any changes in your business operations and always keep them in the loop when making decisions. It’s always easier to assist a client in making the best decision for their business than it is to try to clean up a hot mess that was made after the fact. Perfect example would be selling a vehicle too soon that is still a depreciable asset and the company having to take a hit of having to reclaim prior year bonus depreciation. Invest in an accountant!
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A distinction should be made that:
1. STARTUP COSTS are the costs incurred in starting a business BEFORE the business has been formally created.
2. Whereas ORGANIZATIONAL COSTS are the costs incurred AFTER the business has been formally created.
Per the IRS, a business is considered as being formally created on the data that the business is officially registered with the state that it is formed within Often referred to as the Incorporation Date.
This distinction matters when filing your taxes, because you may have expenses that YOU consider as STARTUP COSTS, because they were incurred after the business was registered, but before you started selling your products or services. However, the IRS may not consider them as STARTUP COSTS if incurred AFTER the business was registered.
Buy hey, I'm just a random guy on TH-cam, verify your situation with a Tax Specialist or CPA before you get started.
Another great video.
2016 Formed LLC partnered with wife
2019 formed another LLC with wife for purchase of the real estate of property the restaurant is in with 5 other tenants.
2023 Elected to have restaurant taxed as a Scorp.
To much profit in 2023 so restaurant LLC loaned holding LLC money to fund another real estate purchases.
2024 have 40 rentals. Forming another LLC management company with 2 employees wife and I. Solo 401K time!
Just make them all corps!
I was glad to see you included a holding company in the mix, because I was just about to suggest that. Where in the sequence of creating these businesses did you create the Holding Company?
@@stevenbingham3061 2019 was the year holding company formation to purchase the commercial plaza our restaurant is located in. It’s
Important to have a lease between both the restaurant and the holding company like any other tenant.
Reason we formed a separate property management LLC for the rentals is that rental income is “passive” income and you cannot have a solo 401K with that setup…however a side door method if you self manage which we do, is to create a property management company that the holding company “pays” for service. Collecting rent, scheduling contractors, etc….this property management company has 2 employees. You guessed it. Husband and wife. Currently the property management company charges the holding company a year 100K for services.
Then pays my wife and I 25K each a salary of which we elect 100% of that to be put in our solo 401K. Leaving 50K in profit, however our management company is very generous and also contributes to the solo 401K as well.
@@JayRight321 We opened the restaurant in 2017.
Which is separate LLC.
In 2019 the owner of the shopping plaza approached me he was dumping his assets retiring. Asked if I’d be interested in purchasing. I jumped on it. Formed the LLC to hold title then. Purchased it 60 days later.
Awesome 👍🏿
You're saving lives, My G 🙏🏾☄️
This content is priceless! I can’t even imagine how good your paid services are. I’ll be calling once I get established and looking to level up! 🙏🏾
@KarIton-youtube- 🤨
Your team is great smart people. Keep helping us. I just got my LLc and I know nothing! I'm learning from yall n Google. Peace n Thanks.
Great work Cynext solution so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
Very helpful - thanks! Getting ready to start another LLC and did not know that startup expense deductions were limited to $5,000 then one has to amortize the balance over 15 years. Always great stuff - thanks!
Great video per usual..very informative a lot of game in under 10 minutes
Receipts. Always a sore subject when I hear it.
Does anyone think Walmart. Keeps all their receipts? Like when something as simple as a local contractor doing their grass cutting.
The answer is no. They don’t. The same tax rules apply if your gross is 100K a year or 500m a year.
Statements. Credit card statements. Good enough.
Audited, so here you are Mr IRS. Here’s last year’s credit card statements. 750 pages worth. And it’s a business only card. So don’t ask me if there’s a personal expense on there for a box of screws at Home Depot. There isn’t.
Are you coming over to count the screws, and see if one is missing?
My point people is get setup correctly. Do everything on a business card that flows into QB. And when you get questioned don’t fear. Don’t get nervous Walmart doesn’t have trailers of receipts.
Accountant of 20+ years here and this statement has been set off in so many conference rooms on the east coast that I’ve been a part of that I’ve lost count. I’ve been in IRS & NC conferences in which this very topic was brought up and let me tell you that the room went dark. The most important thing you said without saying it is STOP COMMINGLING YOUR MONEY!!! If they cannot prove that you have any personal expenses mixed in with your business expenses then everything is a business expense!! But I’ve not met a business owner yet that has been able to do this! If you can produce me one that is 100% and I mean 100% of the time then it would be like seeing a unicorn!! I preach it to them from the very beginning and I mean from the time I am assisting them during the business planning stages and I keep telling them through the process especially if we go through a loan process and setting up the bank accounts and as soon as the business credit and debit cards arrive I make sure to remind them not to use them for anything other than business purposes. Now how many of them have ever listened to me….the answer is zero!!! By default they always come back with some excuse as to why they had to use it or why they had to send their employee to Kalamazoo to pick up granny with the company credit card and they want me to somehow make it a business write off. The rules are in place for a reason and if you follow them then you can fall back on those rules to save your ass from the receipt headache but if you break the rules I really hope you have that tractor trailer full of receipts because I promise you they’ll ask for them they’ll make you provide them in a timely and reasonable fashion whether they be copied and mailed or digital and yes they’ll go through all of them! They’ll make you check off every deck screw and box of nails and every square of shingles…..I just finished a construction audit and it was horrible all because they couldn’t follow the simple rules! And just for the sake of saying it…I absolutely despise QuickBooks!! I’ve never found it very user friendly but that’s probably because I’ve always used other professional accounting software. To each their own and whatever works for you please use it! A good accountant is worth the expense and honestly it’s one of the best investments you’ll make for your business especially if you’re not disciplined enough to keep up with the accounting side of the business. I take my car to a mechanic to be fixed and I go to a salon to have my hair dyed….i just suggest consulting a professional but I do love this tip!!
Excellent content and well-presented!
Thanks for the info!
If you are starting a business and anything in this video is new to you, you need a CPA now. Don't rely on this type of video for tax advice, almost everyone's situation is different.
Well, for sure. But having videos like this allows a new business owner like myself, to understand which things can potentially be write offs so I save receipts or track certain expenses that I wouldn’t otherwise do, without this information
@@sarahdallos4012 Here is some sincere advice from a CPA with 50+ years of experience, when you go into business you need a good lawyer, CPA, and insurance professional. Given that you don't know accounting and bookkeeping, a two-to-three-hour session with someone that can advise you would be a valuable investment for you.
@@sarahdallos4012same here
Videos like this plus AI equals just use a CPA for the paperwork 😊
This information is coming from a CPA. You can look up his credentials and where he graduated from. It's called the internet.
This is awesome, I'm going to recommend people to take a look at this video for sure
You are phenomenal 🎉I am just taking baby step # one. This video was Sooo helpful! Thank you for sharing. Truly you simplified a few things. Praying for you. Thx sgain🎉❤🎉❤
Hi Mr. Dennis, this is the best video ever. Thank you so much for being so helpful.
So if your home office is located in a garage or “non liveable area,” can you still take a home office deduction?
maximum of 300 sq ft. so if your garage is say 1,500 sq ft like say brians lawn maintenance who just built an unattached garage only 300sq ft of it as long as it is a dedicated space within, and you are the owner of said business. so 1,200 sq ft is excluded. measure it out l*w= sq ft
if you want to section off a corner again take length * width then divide by 2 for a triangle corner as you are cutting in half diagonally your square/rectangle dimensions to give you that space calculation.
My house is 2000sq ft but my garage is 3000sq ft . Would I be able to deduct 1500 sq ft of garage space if it used for business? Example content creation?
Just a side note from an accountant he is speaking of traditional LLCs here but LLCs can be converted to SCorps which was the 1120 form that popped up at the end of his video but if you do that then the whole set of rules change
How do I file my business was elected to S Corp.
@@smithr2545 are you asking how to change it from an LLC to a SCORP or the different ways to file the taxes?
Thank you so much for this information!!!
Hi. Question: Can you still claim the home office expense if you are using a virtual address for you business. For example say I running a Shopify store and I have a virtual address for the store, but I technically run the store online from my home office, do I still qualify for the home expenses tax write off.
Did you ever find out ?
Investment choices like converting to a Roth IRA or selecting tax-free municipal bonds over taxable bonds might be impacted by small taxes. How can I participate in the stock market with the more than $685K in equity I have left over from a home sale without paying taxes twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts. If you're not who understands strategies to invest in the market, seek a Financial advisor to guide you.
I totally agree, I'm 60 and newly retired with about $730K outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of an advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
Could you kindly elaborate on the advisor's background and qualifications?
The advisor that guides me is Melissa Terri Swayne , most likely the internet is where to find her basic info, just search her name. She's established.
Thank you so much for this tip! Finding your coach was a breeze and I was really impressed with all the research I did on her credentials before scheduling a call. It's clear from her résumé that she's extremely knowledgeable and skilled, and I'm so excited to have the chance to talk to her!
Thank you for your Knowledge. You explained this very well. Well enough for an old Marine to understand... OOORAH!!!
Dude, thank you. I must set this up as a real estate agent
Great vid like always Karlton. Thanks for the information
This was eye-opening. Thanks, Karlton!
Do you have a similar video regarding tax deductions for S-Corps? If not how many of these tax deductions apply to an S-Corp if you are filing as an S-Corp.
He was talking about traditional LLCs but he definitely showed the 1120 form at the end of the video 😂
I'm a personal trainer. I have an LLC. BUT, I work for a commercial gym. Can I still claim my vehicle under my personal training LLC? As a business vehicle?
You are a life saver.
Wow, he is soo informative!!! Thank you 🎉
Question: Deductions are specific to taxes? Or does it bounce between full price and/or taxes depending on what the purchase is?
Great Video. Thank you for sharing.
Fantastic content, and information
I am considering converting my Sole Proprietorship into an LLC. Do all of these items apply to that situation? thanks.
If the LLC has a virtual business address, is the home office still a valid write off?
Good information
Would an initial investment of 5000 dollars seed money for a brokerage in a business centered around trading stocks, would that inital 5000 dollars qualify for a tax deduction?
What states do you provide your services ??
This is great information 👏🏼
Recently subscribed and really great job and well done with your successes and thank you for sharing great content to the lesser folks like me.
I wondered if you could advise on what type of business LLC or something else can I open in a living trust that would pay my family members (kids included) as employees, eg. help with admin tasks, creating marketing material on Social Platforms etc and other general operational duties towards the business.
Question for you.. you gave the example of using that standard deduction for home office you can get a maximum home office deduction of $1500 based off 300sqf times $5 per sqf… is that $1500 per month? So say my apartment is 2000sqf and I have a room dedicated to my business that’s 120sqf… does that mean I get to deduct $600/month for business expenses?
No. That write-off is for the year.
Good video Thanks a lot for the information
Great video
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Great video 👍
Here is one thing that I always struggled to understand about all this… if a small business owner using these LLC write offs, continues to write off the majority of many things, therefore successfully lowering their tax payments, they one are just creating a large carry over each year because there is a limit correct!? And two… They are also (on paper anyways) legally showing their business to be a loss/failure and therefore little to no value, right!?
Does your company work solely with US-based companies?
Great video! I have a question, I have two fraud inquiries on my reports that I would like to get removed. I've seen your video regarding this, but Im still a bit confused. So I know my first step would be making a call with the credit bureau (Experian) but should I also make call what time? And would I be never stop sending a good compny Cynext solution to my friends and people I know regarding any credit situations
So what’s the best state to get your LLC in?
After watching your virtual address video. Can you write off the expense of a virtual office as well as home office?
What about VA Family Caregivers who receives $24,000 to $36,000 Year Tax Free Stipend? should that be considered when starting a LLC?
Great information!
Karlton, you mentioned the start business tax write up and $5000 limit, however what is confusing to me is that it appears the start up deduction is only allowed for expenses before you are formally in business? Meaning if you do the responsible thing and get your LLC first you are shooting yourself in the foot as expenses after the LLC formation are not considered start up costs? Is this correct? It’s very confusing as it is still the same 12 months.
Love your expert insight.
Once the business is open then all necessary & ordinary expenses deductible.
So if I got my LLC in Nov 2023, can I submit my first (full) year write-offs up to $5K for April 2025 tax day? I had minimal set up fees from Nov-Dec 2023. I included those minimal costs for Apr 2024 tax day. 🤷🏼♀️
Great question
What about having a w2 and an llc. Can you do your standard 26k married deduction plus llc business deductions to lower your total AGI?
I am going to be taking over my fathers business and opening a nonprofit side business. Main is billboard advertising, what type should I use for each.
Does choosing standard mileage versus actual need to be elected in the first year for a LLC just like a sole proprietorship, in case you want to switch it up in following years?
Hello what if the house not in your name but you been there for years and have your office space ?
Can I write renovations to make my home office functional in relation to my specific business?
Can you have a home office in a vehicle? I have a cleaning business, and I setup a computer, and office in my box truck. Thanks in advance! Great information Karlton!
Am I able to write off equipment purchases for my llc as a startup cost within the first year?
Very helpful video. But everyone’s situation is different. If this information is helpful to you, I recommend you reach out to a CPA (like me) for help on potential tax sacubgs
Great video 🌺🌺❤️❤️
Which should I have first; LLC or Registered Agent?
Would love your help setting up my contractor / handyman Llc
Does anyone know if you can deduct the dissolution fee if you decide to dissolve an LLC?
Good question
Yes in the year in which you are dissolving the LLC. Example you dissolve in 2023 you file it on 2023 taxes because you will also close the LLC on that same 2023 tax return when it is submitted
Startup costs being fully-deductible in the first year and well beyond $5K should be normalized. Why not $50K or 100K?
What if I started an LLC in 2023 from my bedroom, I opened a business checking account but paid for the LLC setup fee from my personal account and paid for rent from personal as well: could I deduct them still? 🤔
Yes, as long as it a legit business expense and you have a receipt !
The 1500 square feet thing, I was using that for my one business but then I started renting a room in which I was going to split the monthly property fees between the tenant and I. If the LLC covers my one business and the rental business is just under a sole proprietor, I can't use the $1500 for the office space and the $600/month property fees, $200 electric, and other fees for sewer, gas, etc. can I? They probably force us just to use it once for both businesses, I'm sure.
I'm also hoping the ridiculous $800 California fee is deductible on next year's federal taxes.
it's not 1500 sq ft. it's $5 per sq foot capped at 300 sq ft.....start up of a new business for only it's first 5 years.
business expenses are different deductions from this video....reread the title. do not proceed until you understand fully...if you don't understand consult a business tax agency until you do.
yeah...afford a tax person because you're all SO CHEAP! LMAO right.
When is it safe to shred receipts?
My recommendation is to only shred receipts from business transactions when you have a backup copy for your records. Scan the reciept to have it on your computer or refer to your business debit/credit card statement used for the expense. Ink on receipts tends to fade over time (especially when crammed into a wallet), and can be illeligible.
@@msmakemakld8593 Thanks a bunch for your recommendation!
Thanks this was helpful
great
Are these same deductions available to sole proprietorships?
You mentioned office spaces does the same write off apply to warehouses
Instead of making people waste time micromanaging everything and keeping track of every little expense to save money just lower the overall tax and eliminate writeoffs
Dennis I am from India and If I have to open a US company under which company type I can work as self employed and get W2 form , LLC or C-CORP?
Are cowork spaces tax deductible ?
So, does house garage qualify for home office expense?
If you use it exclusively for business
Great video however Google was started in a dorm room and
I am interested in working with you to improve my business. What will be the cost of establishing my business account ongoing records.
I advise you found someone else. His team is not trustworthy
Love your vids, but the sounds and overlays are a little too distracting. The style is cool though:)
How do I get in contact with you
How can I switch over my new personal car into my real estate business LLC? Give me some advice my guy please
He has a video on this
Can I take the standard deduction and still deduct these expenses?
Sheeesh bro ! Im surprised tbh
If only these new deductibles were available last year
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Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
YES!!! That's exactly her name (Annie Brooks) so many people have recommended highly about her and am just starting with her from Brisbane Australia🇦🇺
I'm new at this, please how can I reach her?
Her good reputation already speaks for her .I’m also one of the beneficiary of Annie Brooks. So happy I gave it a trial after being skeptic of the process.
she's mostly on Instagrams, using the user name
Hi, I rent my home where I have my Business do I qualify?
Yes, you just don't get depreciation.
I just want to know if I can write off a laptop
The Business-Use portion
Sorry ***Note Correction** At end of last comment. “Little to no value” should have read: Showing a loss each year and therefore no business growth!
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SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
@Infurnaevely1
What happens if I incurred lots of start up expenses in 2023 but the LLC is incorporated in 2024?
You first have to refer back to what start up expenses actually are. They’re only start up expenses prior to the actual creation/registration of the LLC. So that would be #1. Then you #2 issue is that once the LLC is incorporated it is now a CCorp assuming that is the election you went with and I’m not misunderstanding your statement. So if that is the case you would now be filing a completely separate tax return on a 1120 form and not within your own tax return documents at all. The due date for CCorps is March 15th of each year and if you’re being paid by your CCorp you’ll be issued a W2 from your CCorp to file with your personal tax returns. So your question is extremely loaded because the expenses incurred by the corporation will convert completely to “them” as the company!
Are you an actual taking clients as a CPA?
he is not a CPA he is a new age "Tax strategist" aka Mr IRS Audit starter! lol
🙏🏾
Is the new Biden laws effect this?
If I lived in another state I would start a second LLC for a new idea I have but it's a gamble in California. This stupid state charges $800 a year thinking we're all rich and they'll come after your out of state LLC for taxes anyway so it doesn't matter where you setup. Both states will come after you. Never a tax a politician didn't like! I really dislike living here. California is such a joke. Money grubbing politicians here.
A moving truck will get you to where you need to be.
YOU DONT NEED AN LLC TO CLAIM THESE DEDUCTIONS. A BUSINESS DOES NOT REQUIRE AN LLC.
Yes on some of them you don’t
What do you mean by best write-off? A deduction is a deduction. Silly video.
Business owner and CPA here:
Some deductions are more likely to be challenged by the IRS and are more of a headache to “prove”.
Other deductions are simple to prove and the IRS rarely even questions.
Some deductions are “better” than others.
You don’t need a LLC to write off this stuff.
I do taxes, you are lying.
You need a business
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Wonderful, just wonderful. Truth must be sought beyond whatever social baggage you are carrying and must let go of. Forward momentum is accelerated in crystal clear vision. Cynext solution dropped serious knowledge. My credit presently runs from good to excellent, but I want from excellent to most excellent. I hear that this is the way to do it. I love the whole precision of this methodology. Here is power. Thank you.