You guys stay with these videos man! I was listening to this video with my seventeen year old son. He enjoyed it and I have been sending him and (other people) your videos. Always very clear and concise! This is like a hidden gem on TH-cam!! Thank you guys so much for all your hard work and effort. My son wants to start an LLC on his 18th birthday!
I was finding it so difficult to buy a car on credit cause my credit scores was so low and @exceptional_tools on lG help me out and he fixed my scores and I got a car on credit I’m so great full thanks so much I recommend him you should try him you would get a car on credit .
With the right paperwork, you can buy the car in one llc and then lease it to your other llc. 1st one is depreciation.(100% / 5 yrs). 2nd one is 100% lease right off. This gives you 120% percent instead of 20% This also applies to any purchase.
What if your LLC is new and doesn't show cash flow yet? I have a full time job and I have my other company that builds houses, concrete work, cabinets, etc. Would I be able to lease vehicle through my LLC?
I take the mileage deduction rather than buy my vehicle in my LLC because the benefit owning in my LLC was completely wiped out by the triple priced insurance they wanted me to pay on my business vehicle. All of the miles you are using your personal vehicle for work can be used as a business expense if it it owned by you or by your corporation.
@@tkkirkland9856 Yes you can write business car insurance off but it was over 3 times the price of personal car insurance---I drive older cars that insurance is really cheap. I was money ahead to track mileage and deduct that rather than put my van into the business and deduct the expenses.
I love listening to others educating on the amazing Tax advantages for being a business owners. If I can add a few pointers, you don’t need a LLC to be able to write off your Vehicle or the mileage. For example, a real estate agent can deduct the mileage for going out to show homes. Even driving to a restaurant to meet for business is a tax deduction. 80% of what you currently spend money on or own can be converted into a Tax deduction. I’ve been a Tax preparer & coach for 28 years
joshua martinez This video was based on someone that has a business or own rental properties. This is why I teach the masses about starting a home based business. You don’t start because the big tax savings, you get the big tax savings because you started. Employees has no tax benefits .
I completely disagree! I am starting my business and there was so much information that I needed that I didn’t know about. I really appreciated it thank you!
Right! They kind of juggled around pretty concise questions. I wish they would have had them written out and just followed them line by line answering them thoroughly before moving on to the next question topic.
Man .. I paused the video right when he said "I'm going to handle it over to Natalie" as i was going for a smoke break ... But when he said the exact same thing?! Now that deserves my subscription... love this channel already!!
Don't ask a real estate investor about tax questions, ask a tax professional about tax questions. Everyone's situation is different, its like having a plumber install some roof shingles.
Well there is no How To.... but how it works once you have it. I was told by an accountant that Leasing a vehicle is a much better write off than financing one for business.
Ah.. you just buy the car.. and title it in Your Name or the name you make up.. like " My Car" OR "Real Estate on Wheels etc. Or use the actual LLC official title.. Now that is my state .. every state is different and sometimes even City laws about autos, commercial uses, etc. The Morris info is FACT.... you must use your accounting to show the use and maintanance and expenses for all use or specific use. Your books are KING LEGALLY not some method to BUY or even OWN or Title any vehicle. Same as for a LAWN MOVER. If your here to make fun fine.. if your here to complain.. then your on your own to make mistakes that will cause major troubles with the Government and yes.. YOU . Have fun.. keep smiling !
@@ewlinitis Yeah.. Leasing has more expenses but the cost is money you do not use keep to use as profit.. your $15oo TO $6000 CAR is really all one needs to get around dependably and your insurance is much less with no finance charges. Real Estate increases the milage and maintainance of any car used for such. Save up and pay cash !!! Now if your income is above a Million.. then yes Leasing may work as you get a new car every year on the lease trade agreement your SMART TO NEGOTIATE AS A BUSINESS PERSON.. Get what is called " off lease trade in " . Lease a 1yr old replacement every year. Smart money ... stays in YOUR HAND not the car lease or manufacturers hand. You just might need that money to cash in on another profit making property. When does a car make anyone a profit except in the Taxi , Trucking, or Shuttle biz. Do you qualify for such ?
A simple "Yes, you can and here's how or when you can." or a "No, you can't, and this is why." would have been so much clearer! Your response went in too many directions.
You don't need a LLC to write off mileage if it is used for business. But you can not write off expenses like gas, tires, repairs if you are taking mileage. You have to pick one or the other and if you chose mileage you can not change it. I have two cars, I use one 100% for business...
you could open an llc and have it taxed as an s-corp if money saving is your m.o. or you could open up an s corp if growth is what you're after for your business. s corp is much more formal, restrictive and involves a lot more paperwork than an llc. Its easy to transition an llc into a s corp later on when the business is excelling and profits are reeling in... Usually most small businesses start off as either sole proprietors or llc's.
Just dowloaded the Expensify app. Its great for receipt tracking and has a mileage tracker that links to your GPS. Deducted around $30 just today in travel costs visiting my rental properties!
Up front, *Thank* *You* for your time, effort, and insight. The phrase "write-off" is not the same as expense. Like this: I contracted with a new plumber for a flip house. Then, before they even started, they broke the company's 'special' ladder and disappeared after cashing the $100 engagement check (I hate being ghosted). So, I hired a general contractor (GC) to handle the hold job and buy a new much cheaper ladder for the business. The ladder and the stolen money are a write-off. (For the CPA: Yes, it was a special $2,000 ladder). The new ladder ($100) and the GC are expenses. Neither have a depreciation schedule.
I live in Texas, but own rental properties in Florida. I travel to Florida once a month to keep up with the business, to meet up with realtors, scout prospective properties to purchase, ect. Can I write off the costs of ownership of a Cessna 172 as a business expense? There are maintenance expenses, fuel expenses, hangar rentals, tie downs, continued education such as instrument rating, ect.
This is 100% my plan, Jack. I live in Indiana and want to pick up some properties in the Daytona area.... I also have my eye on the Cessna 172 as means of commuting to those properties.... which I have a suspicion will need constant attention in the winter months....ha ha. That will be down the road though....
You're the experts so not railing against your content, but generally I'd tell people, just be very careful you don't write off too much stuff or you run the risk of getting yourself audited. You really don't want to attract any undue IRS attention. What I do is write off just enough that it makes sense for running my business. Everything else I just pay tax on. As a sole proprietor or LLC, avoiding tax can sometimes come really close to evading tax... I don't take any unnecessary risks.
@@ritzkola2302 No one can give you advice usless you advise your book keeping methods.... there are as many methods as there is stars in the sky. What accounting systems, methods and uses is for your investing? If you tell people you maybe able to get some advice. Life and business is not a "One Way Street" or "One size fits all.." situation. ALSO your City, County, State and Federal laws in your use area dictates how one may keep more untaxed money in hand.. in operaton of your biz and savings. You ? Yes, research if your clueless for an answer on the web first.. it is free, or go to your Library. You now can check out and read disks or books online to your computer for free in most towns if your fortunate. Otherwise the web is great.. BUT.. you must know what your local laws allow or prohibit in your book keeping use and methods for your peculiar business uses FIRST. Hope this helps you.. common sense is sometimes unknown .. due to the poor education system in our country if your from the U.S. Wish you the best ! Don't put your CART in front of your HORSE. They how THAT YOU ARE... asking is not how to setup your books.. but to apply to your particular situation with local law and your particular specific business practices. One size fits all is a recipe for Failure in any biz venture. Ask anyone that has failed...yet ? Staying... isolated in biz is another big recipe for failure. Find local Real Estate or biz clubs in your area and attend in person or via the web. Wishing the best.. never quit to succeed or rely on advice unless you understand your biz situation.. IN DETAIL and that your system in approved by city, county and federal biz laws regarding taxes and book keeping. Go FOT IT !
Great video! One question about depreciation.....In the example of the 1M piece of equipment, If you depreciate the asset 800k over time to 200k, then sell it for 900k, would you have to pay the Capital gains on the 700k difference in sale price minus depreciated value?
Yes, you would have to recapture the depreciation taken and pay the tax on the capital gain. It's basically like this.... you paid 1M for the equipment, then the IRS lets you basically borrow a little bit of that money over the next several years to run your business. Then, if you sell it for 900K then your basis(what you paid for it) is no longer 1M but rather the 200K. That means that you technically made a profit when you sold it in the eyes of the IRS and you will have to pay taxes on that profit. You pretty much have to give the money back when you sell it BUT that gain is taxed at the capital gains tax rate which is higher than the regular tax rate so they actually profit when you depreciate. Its all about the money with the IRS even when they mascarade as a "tax break"
Usually i can’t stand when people off topic lol i didn’t mind hearing you guys talk n i actually laughed at the hair part lol voices aren’t boring i have to subscribe lol thank you for the information
Depends on where you’re coming from if you’re coming from a bank meeting... covered if you’re coming from another office covered. If you have a home office and you’re doing work from home and then have to go into the office to get some thing technically covered. You just have to be very creative and you can make it work you can always answer your work emails from your home office because you’ve already started working and then have to go to the office and then come home and do some more emails and boom you’re just working all the time so therefore any driving back-and-forth between these two entities is covered.
If you are advertising on your vehicle, you should do this merely to protect yourself from a lawyer trying to "pierce the corporate veil" and attacking your personal assets. There is a reason commercial auto is more (there are a lot of sleazy people targeting business vehicles). I don't want to leave myself open to that personal risk so yes buy it in the business account regardless of taxes.
im planning on buying a converted sprinter and use as a music studio that will also shuttle and entertain clients looking to get rid of my current vehicle i will still be working my stock job as well as using converted sprinter as a uber as well . looking to balance those two jobs and with llc cultivating my music instruction podcast and merch sales inside of sprinter
Are we able to lease a new vehicle if we will be driving high miles every year? For example 30k miles a year. Or would buying better a better choice? Also, when buying items for our business that requires a contract, like a car, how do we sign the contract? Can you give an example please? Thanks!
interesting, what about LLC owned by non-US residents ... can buy business expense in country home? ... I mean I have an online dropship business, I have a llc I don't have an office in the USA OR ETBUS, for example, selling goods on Amazon, Shopify ... example, can i buy computer as a business expense in Singapore where I am or Malaysia??
What about section 179? I was expecting a little more about the complete write off of a vehicle up to 11k for regular passenger cars and 25k for over 6k pounds large suvs and full size trucks. Also a DBA with a registered EIN and separate banking accounts and credit (dun and Bradstreet) is almost as secured when it comes to IRS audit likelihood for LLCs. Having a separate IRS identification number helps legitimately establish you with SBA loans and other incentives larger organizations enjoy. The requirements for LLCs are different in each state. For instance in Texas you need a BOD of 5 members that meet a certain number of times a year to be fully legitimate and some people don’t know this therefore don’t have the legal protection of the LLC they filed with SOS. Just trying to help my fellow small business owners here!
What if your purchasing a car for your LLC to create revenue would that be a legit reasoning behind purchasing a vehicle for your LLC.? Meaning I want to use it as a ride share like uber/lfyt or a personal limousine service to fund the company as a second sort of funding to the company.
I need to go buy me a truck ..maybe a ford raptor... put in my llc..ill write off the payments,fuel,etc.. Btw i only have one rental property. But im looking for deals every time i drive..
Sounds like you all are describing the 179 tax code... I've seen so far cars can only take up to 85% depreciation in the first year and the other 15% over 5 years, truck, Van's, SUVs over 6k weight limit is 100% in the first year as well as farm equipment can take the full price deduction... I'm not a tax attorney or CPA double check there however when asking, inquire about the 179 tax law.... 💜
You guys are amazing... love the powerhouse, great couple... anywho, I do landscaping and would love to purchase a truck for my LLC, and equipment -like the whole nine right now, year after year, I’ve been using (beating down/destroying) my family SUV my BMW X5, Nissan Armada and now Chevy Trailblazer by lugging my equipment. Wht would you suggest?
Chan Chan yes, because you have to do xyz for your business..! You’re not driving a car to sit in an office-you picking up stuff from various places, dropping it off, meeting prospects and contractors, etc.
Great Video ! I need to buy a pick-up truck for my remodeling business does it have to be a certain weight such as F-350 vs Tacoma for tax write off/ depreciation I have an S-Corp ? Are there rules for what is considered a work truck ?
I was under the impression that grooming/fitness/health/clothing expenses are generally not deductible? Is there a loophole for actresses on youtube videos that doesnt apply to general meetings? Also, if meeting with investors and impressions mean everything, would not a luxury vehicle be a legitimate expense? I know that private companies are able to purchase luxury vehicles with pretax dollars (told so by a luxury car salesman) so I was hoping your video would touch on these details
I don't know were you got that from. Everything is tax deductible depending on your profession. Anything used to operate your business is tax deductible. Including meals, catering and business "vacation trips" to Hawaii, Las Vegas or London...
might of missed this but why do u keep saying you can do these things with "pretax dollars"? is it pretax bc the monthly contributions from cash flow into the llc are pretaxed? also if my llc is in indiana but i live and drive and register my car for NY, can i still deed it into the llc to take adv of those benefits?
I started an LLC that is a landscaping business. I own a truck that is needed and used for the landscaping business. How do I capture these truck expenses for my LLC?
I'm an accountant and the hair blowout is not legit. Lots of people including me think it should be but it's not. She just hasn't ever been audited, at which point the IRS would disqualify it. Clothes aren't either unless they are "safety" clothing or "logo" gear. I wrote a book on all the things that are write offs, which might be a good read for people who find this interesting.
so can u tell me how t would transfer my car title from my person (assumed business name) to me the man so it's out of the State/state (s) jurisdiction plz ? I'm having trouble finding right knowledge but I need to get this done .
Peace and Blessings! No one could answer this for me. Amazing! I have set up my LLC as an independent business and I purchased a vehicle 2 months prior that I want to convert it to my business expense. Is this possible still. I am considering refinancing it as an option before trading it for a better vehicle option. I would love to speak with you about this matter!
I am still making payments on my car note. How do I transfer it over to my business? Do I get loan through my business to pay off what's left and have the car in my business name? And how do I write off my expenses?
Can I buy a car from myself with my business? Will the taxing excise etc negatives outweigh the positives? It’s an old truck for lawn care and house cleaning pressure washing
Question: Since my real estate business (llc) is still very young (less than 2 yrs) with very limited business credit history, can I purchase a work truck under my personal name (good credit history) for business only, and still get all the tax advantages that come with it e.g. deducting 100% of this expense on my 2019 taxes in the 1st yr?
Great looking couple. I enjoyed the lax, natural dialog while digesting the offering of great business structuring wisdom, well translated, and provided by this channel. Thank you for your assistance and insight.
What i was looking for mainly is when i buy a van for my business . Is there a way to buy it under my business name INSTEAD of my personal name? And will it still be on my debt to income ratio on my credit report? Like will it still show on my report? Guessing yes...
I have life coaching business and was thinking of getting a van and doing conversion on it so i can travel to the client and do sessions in van or wherever they want to meet. The conversation would save me from staying in hotel etc business experience. If I stay in van. I can convert the van from bedroom to office when needed. What can use suggest in this case from your understanding?
You mention LLC’s quite often but I myself don’t have a wife or business partner that would enable me to qualify for an LLC and I want to invest in real estate alone. Am I able to get the same exact tax benifits in an S. Corp for example as i would get in a traditional LLC or are there any differences? Could you make a video on this if possible? I would like to know what other Corporations would qualify for these tax breaks and if it would be a right fit for real estate investing. Thanks!
You do not need a partner to have an llc. Talk to your accountant about llC vs S Corp. Even investing in rental property as a single person a LLC is the way to go.
Rick Kern I understand, but if I’m ever sued by a tenant the judge could easily not have my company viewed as an LLC once he sees me as a single owner and slap me with full liability. How do I protect myself from that happening?
@@Tamersworld No, if you separate your personal finances from your Corp you will be protected. An LLc has nothing to do with how many people own it. It can be owned by one person or twenty and the protection is the same. If properly run an LLC limits your liability in most cases to the assets in the LLC.
@@Tamersworld You are wrong... The judge will only disregard your llc if you do not follow the rules of running an llc. Talk to a lawyer---you are not listening to me.
You guys stay with these videos man! I was listening to this video with my seventeen year old son. He enjoyed it and I have been sending him and (other people) your videos. Always very clear and concise! This is like a hidden gem on TH-cam!! Thank you guys so much for all your hard work and effort. My son wants to start an LLC on his 18th birthday!
Thanks Devante!
@@RedactedNews I doubt the back blow out lasts as long as the hair lol
I was finding it so difficult to buy a car on credit cause my credit scores was so low and @exceptional_tools on lG help me out and he fixed my scores and I got a car on credit I’m so great full thanks so much I recommend him you should try him you would get a car on credit .
With the right paperwork, you can buy the car in one llc and then lease it to your other llc. 1st one is depreciation.(100% / 5 yrs). 2nd one is 100% lease right off. This gives you 120% percent instead of 20% This also applies to any purchase.
Wow I never knew this
Dang that is smooth 😎
Then where are the lease payments being claimed? That becomes income for the first LLC and you owe taxes on that or am i missing something?
How do you lease a pre own car from first Llc to lease out to second Llc? Can you lease a pre own car?
If you want to purchase a vehicle with your LLC,
You simply use your EIN number instead of your social on the financing paperwork
They babble alot instead of just answering the question directly
@Chaz G. Well that simplified it... (I was about to take notes on getting a hair blowout before taxes...lol )
I like hair dye😂😂
What if your LLC is new and doesn't show cash flow yet? I have a full time job and I have my other company that builds houses, concrete work, cabinets, etc. Would I be able to lease vehicle through my LLC?
@@donnydelatte5180 that is what I needed to know
I take the mileage deduction rather than buy my vehicle in my LLC because the benefit owning in my LLC was completely wiped out by the triple priced insurance they wanted me to pay on my business vehicle. All of the miles you are using your personal vehicle for work can be used as a business expense if it it owned by you or by your corporation.
Thanks for sharing, Rick!
I agree. I drove over 100,00 miles last year and actually got a tax return.
this comment simplify the video!
Can't write off car insurance for your company vehicle?
@@tkkirkland9856 Yes you can write business car insurance off but it was over 3 times the price of personal car insurance---I drive older cars that insurance is really cheap. I was money ahead to track mileage and deduct that rather than put my van into the business and deduct the expenses.
I love listening to others educating on the amazing Tax advantages for being a business owners. If I can add a few pointers, you don’t need a LLC to be able to write off your Vehicle or the mileage. For example, a real estate agent can deduct the mileage for going out to show homes. Even driving to a restaurant to meet for business is a tax deduction. 80% of what you currently spend money on or own can be converted into a Tax deduction. I’ve been a Tax preparer & coach for 28 years
Awesome! Thanks, Mark!
Mark Pires , so if I own a multi-dwelling apt rental how does one deduct home internet, mobile phone use etc...
Talk to your CPA, don't try to DIY business taxes.
Umm not this tax year 2019...cant write off milage anymore with just a w2
joshua martinez This video was based on someone that has a business or own rental properties. This is why I teach the masses about starting a home based business. You don’t start because the big tax savings, you get the big tax savings because you started. Employees has no tax benefits .
This video could of easily be 3 minutes and so much more for effective
No heart for you lol
This comment could be more efficiently told if it's sentence structure was more accurate 🤣
I completely disagree! I am starting my business and there was so much information that I needed that I didn’t know about. I really appreciated it thank you!
But you stuck around? Hmmm 🤔
@@bondservantministriesinc.672 It's never enough for some people....
Who ever asked the question is still confused
FACTS
Right! They kind of juggled around pretty concise questions. I wish they would have had them written out and just followed them line by line answering them thoroughly before moving on to the next question topic.
😂
P Evans lol
😂😂😂😂😂
Man .. I paused the video right when he said "I'm going to handle it over to Natalie" as i was going for a smoke break ... But when he said the exact same thing?! Now that deserves my subscription... love this channel already!!
Don't ask a real estate investor about tax questions, ask a tax professional about tax questions. Everyone's situation is different, its like having a plumber install some roof shingles.
True, we are not CPAs! We always suggest consulting with a great CPA. We are simply sharing our experiences, not advice.
Alfred Capasso 😂😂😂😂 I’m a TAX ACCOUNTANT. Thanks for making me laugh.
TIFFANY CLARK do you have a TAX Blog Tiffany? If not I wish you would
Alfred Capasso 😭😭😭
The title is misapplied...This video doesn't tell us How to "buy" a car in an LLC, it tells us How to "use" a car in an LLC.
The wife is running the show! I need a Blow Out! so confused they had a lot of time on their hand that day.
Agreed, it's not how to" but what you should do once you have it"
Well there is no How To.... but how it works once you have it. I was told by an accountant that Leasing a vehicle is a much better write off than financing one for business.
Ah.. you just buy the car.. and title it in Your Name or the name you make up.. like " My Car" OR "Real Estate on Wheels etc. Or use the actual LLC official title.. Now that is my state .. every state is different and sometimes even City laws about autos, commercial uses, etc. The Morris info is FACT.... you must use your accounting to show the use and maintanance and expenses for all use or specific use. Your books are KING LEGALLY not some method to BUY or even OWN or Title any vehicle. Same as for a LAWN MOVER. If your here to make fun fine.. if your here to complain.. then your on your own to make mistakes that will cause major troubles with the Government and yes.. YOU . Have fun.. keep smiling !
@@ewlinitis Yeah.. Leasing has more expenses but the cost is money you do not use keep to use as profit.. your $15oo TO $6000 CAR is really all one needs to get around dependably and your insurance is much less with no finance charges. Real Estate increases the milage and maintainance of any car used for such. Save up and pay cash !!! Now if your income is above a Million.. then yes Leasing may work as you get a new car every year on the lease trade agreement your SMART TO NEGOTIATE AS A BUSINESS PERSON.. Get what is called " off lease trade in " . Lease a 1yr old replacement every year. Smart money ... stays in YOUR HAND not the car lease or manufacturers hand. You just might need that money to cash in on another profit making property. When does a car make anyone a profit except in the Taxi , Trucking, or Shuttle biz. Do you qualify for such ?
5:04 the video starts
Thank me later
Dana McWhite damn I was to late reading your comment lol
@@nupecoates thank you
A simple "Yes, you can and here's how or when you can." or a "No, you can't, and this is why." would have been so much clearer! Your response went in too many directions.
That would make for a short video!
@@RedactedNews It doesn't have to be the only thing addressed but, a concise answer would've been appreciated.
You don't need a LLC to write off mileage if it is used for business. But you can not write off expenses like gas, tires, repairs if you are taking mileage. You have to pick one or the other and if you chose mileage you can not change it. I have two cars, I use one 100% for business...
Show Topic - a Real estate agent and Investor - should i open up and LLC or and S-Corp?
you could open an llc and have it taxed as an s-corp if money saving is your m.o.
or you could open up an s corp if growth is what you're after for your business.
s corp is much more formal, restrictive and involves a lot more paperwork than an llc.
Its easy to transition an llc into a s corp later on when the business is excelling and profits are reeling in...
Usually most small businesses start off as either sole proprietors or llc's.
LLC LLC SMALL BUSINESS
WHEN U GET INTO MILLIONS
DISSOLVE LLC SET UP A CORP
DELAWARE OR VEGAS OR WYOMING
jb
First time visitor here. Loves the little banter about the hair.
Just dowloaded the Expensify app. Its great for receipt tracking and has a mileage tracker that links to your GPS. Deducted around $30 just today in travel costs visiting my rental properties!
Thanks for the tip!
I was expecting details about what's required as far as paperwork in place to walk at a dealer using LLC.
PAPER WORK IS FOR THE VEHICLE
LLC EIN NUMBER WILL BE USED
FOR IT..WHAT PAPER WORK DO U NEED..jb
Up front, *Thank* *You* for your time, effort, and insight. The phrase "write-off" is not the same as expense. Like this: I contracted with a new plumber for a flip house. Then, before they even started, they broke the company's 'special' ladder and disappeared after cashing the $100 engagement check (I hate being ghosted). So, I hired a general contractor (GC) to handle the hold job and buy a new much cheaper ladder for the business.
The ladder and the stolen money are a write-off. (For the CPA: Yes, it was a special $2,000 ladder). The new ladder ($100) and the GC are expenses. Neither have a depreciation schedule.
I live in Texas, but own rental properties in Florida. I travel to Florida once a month to keep up with the business, to meet up with realtors, scout prospective properties to purchase, ect. Can I write off the costs of ownership of a Cessna 172 as a business expense? There are maintenance expenses, fuel expenses, hangar rentals, tie downs, continued education such as instrument rating, ect.
Very likely! Discuss with your CPA.
This is 100% my plan, Jack. I live in Indiana and want to pick up some properties in the Daytona area.... I also have my eye on the Cessna 172 as means of commuting to those properties.... which I have a suspicion will need constant attention in the winter months....ha ha. That will be down the road though....
You're the experts so not railing against your content, but generally I'd tell people, just be very careful you don't write off too much stuff or you run the risk of getting yourself audited. You really don't want to attract any undue IRS attention. What I do is write off just enough that it makes sense for running my business. Everything else I just pay tax on. As a sole proprietor or LLC, avoiding tax can sometimes come really close to evading tax... I don't take any unnecessary risks.
Great Video Clayton! Also if you use an LLC to LEASE a car, you can potentially tax deduct up to 100% of the monthly payments!
Thanks for sharing!
A brother of a friend of mine works for a law enforcement agency and he tells me he deducts up to 75% of his lease payments. How does he do it?
I get 100% on my lease monthly payments
@@nstv23 how?
@@ritzkola2302 No one can give you advice usless you advise your book keeping methods.... there are as many methods as there is stars in the sky. What accounting systems, methods and uses is for your investing? If you tell people you maybe able to get some advice. Life and business is not a "One Way Street" or "One size fits all.." situation. ALSO your City, County, State and Federal laws in your use area dictates how one may keep more untaxed money in hand.. in operaton of your biz and savings. You ? Yes, research if your clueless for an answer on the web first.. it is free, or go to your Library. You now can check out and read disks or books online to your computer for free in most towns if your fortunate. Otherwise the web is great.. BUT.. you must know what your local laws allow or prohibit in your book keeping use and methods for your peculiar business uses FIRST. Hope this helps you.. common sense is sometimes unknown .. due to the poor education system in our country if your from the U.S. Wish you the best ! Don't put your CART in front of your HORSE. They how THAT YOU ARE... asking is not how to setup your books.. but to apply to your particular situation with local law and your particular specific business practices. One size fits all is a recipe for Failure in any biz venture. Ask anyone that has failed...yet ? Staying... isolated in biz is another big recipe for failure. Find local Real Estate or biz clubs in your area and attend in person or via the web. Wishing the best.. never quit to succeed or rely on advice unless you understand your biz situation.. IN DETAIL and that your system in approved by city, county and federal biz laws regarding taxes and book keeping. Go FOT IT !
Great video! One question about depreciation.....In the example of the 1M piece of equipment, If you depreciate the asset 800k over time to 200k, then sell it for 900k, would you have to pay the Capital gains on the 700k difference in sale price minus depreciated value?
Good question for your CPA!
Yes, you would have to recapture the depreciation taken and pay the tax on the capital gain. It's basically like this.... you paid 1M for the equipment, then the IRS lets you basically borrow a little bit of that money over the next several years to run your business. Then, if you sell it for 900K then your basis(what you paid for it) is no longer 1M but rather the 200K. That means that you technically made a profit when you sold it in the eyes of the IRS and you will have to pay taxes on that profit. You pretty much have to give the money back when you sell it BUT that gain is taxed at the capital gains tax rate which is higher than the regular tax rate so they actually profit when you depreciate. Its all about the money with the IRS even when they mascarade as a "tax break"
She's very good at explaining things
Thank you!
Lol
I remember when Natalie did tech reporting it was awesome now you and your husband are doing even better now.
i use my truck in my LLC , sprayliner i used in the bed , it's a lease unit
Love it. Thank y’all 🥂🙏
Lol @ the cigarette break and “no you’re not” 😂😂
Hahaha!
Wow stumbled upon this video by accident I gotta say you guys rock and will be binge watching and obviously subscribe THANK YOU!!!
Hi Jeff! Thanks so much. Glad to have you here.
I just found you guys and I’m so excited. I’m going to check out your channel. Yes I subscribed 🎉
Usually i can’t stand when people off topic lol i didn’t mind hearing you guys talk n i actually laughed at the hair part lol voices aren’t boring i have to subscribe lol thank you for the information
Last time I checked commuting to the office counts, did something change??
Depends on where you’re coming from if you’re coming from a bank meeting... covered if you’re coming from another office covered. If you have a home office and you’re doing work from home and then have to go into the office to get some thing technically covered. You just have to be very creative and you can make it work you can always answer your work emails from your home office because you’ve already started working and then have to go to the office and then come home and do some more emails and boom you’re just working all the time so therefore any driving back-and-forth between these two entities is covered.
When in doubt, always read the notes, saves a lot of *precious time* .
If you are advertising on your vehicle, you should do this merely to protect yourself from a lawyer trying to "pierce the corporate veil" and attacking your personal assets. There is a reason commercial auto is more (there are a lot of sleazy people targeting business vehicles). I don't want to leave myself open to that personal risk so yes buy it in the business account regardless of taxes.
“We are totally off the topic of the car, the point is.....my hair looks totally nice like this...” lol
im planning on buying a converted sprinter and use as a music studio that will also shuttle and entertain clients looking to get rid of my current vehicle i will still be working my stock job as well as using converted sprinter as a uber as well . looking to balance those two jobs and with llc cultivating my music instruction podcast and merch sales inside of sprinter
Are we able to lease a new vehicle if we will be driving high miles every year? For example 30k miles a year. Or would buying better a better choice? Also, when buying items for our business that requires a contract, like a car, how do we sign the contract? Can you give an example please? Thanks!
I like the info and the lighthearted attitude :)
Super awesome content
Beautiful hair! Good example...Had I known these things earlier my life would have been quite different...Thank you...
Very professional presentation and feel/look! Thank you.
What about buying a truck for a business that you want to start? What's the best way to go about doing this?
Our CPA said we can still write off car expenses even if you own your car personally and use it for your corporation’s business. Just keep records.
Loved the banter 👍🏿👍🏿
finally I find an account with real information and humor lol thanks guys!!
accurate an simple explanation, ty you two
The first 23 seconds convinced me to subscribe by the way you talk.
Thanks so much.
What is the best tell all source of informational guide regarding tax write-offs and how to do so using a LLC?.
Lots of info online about this.
The applications are written for personal applicants. Asking for entries that a person would only use. So what do you do in that case?
interesting, what about LLC owned by non-US residents ... can buy business expense in country home? ... I mean I have an online dropship business, I have a llc I don't have an office in the USA OR ETBUS, for example, selling goods on Amazon, Shopify ... example, can i buy computer as a business expense in Singapore where I am or Malaysia??
Would there be advantages to selling your you own home to your LLC and renting it back from the LLC?
I am not sure if that is a legitimate strategy. Ask your CPA.
Good question-let us know when you find out
Use a irrevocable businesstrust
Any microphones for filming videos that you can recommend? This sound quality is great.
What about section 179? I was expecting a little more about the complete write off of a vehicle up to 11k for regular passenger cars and 25k for over 6k pounds large suvs and full size trucks. Also a DBA with a registered EIN and separate banking accounts and credit (dun and Bradstreet) is almost as secured when it comes to IRS audit likelihood for LLCs. Having a separate IRS identification number helps legitimately establish you with SBA loans and other incentives larger organizations enjoy. The requirements for LLCs are different in each state. For instance in Texas you need a BOD of 5 members that meet a certain number of times a year to be fully legitimate and some people don’t know this therefore don’t have the legal protection of the LLC they filed with SOS.
Just trying to help my fellow small business owners here!
What if your purchasing a car for your LLC to create revenue would that be a legit reasoning behind purchasing a vehicle for your LLC.? Meaning I want to use it as a ride share like uber/lfyt or a personal limousine service to fund the company as a second sort of funding to the company.
You guys are funny! 😆 Thanks for doing this! 👍🏼 all the best you two! Be well.
What about purchasing an RV? I would be using it to travel the country doing seminars as well as interviews. Also a part of my channel travels.
You can track your millage with quickbooks self-employ
Very talented couple, God bless them, Wow , a great business example of buying a car or truck for your company.
Thank you.
“We’re totally off topic of a car” 🤣 subscribed
Thanks!
So cleaning houses and things like lawn care. Right?
RIGHT RIGHT RIGHT jb
What if you already own a car you want to use under an LLC? Would you have to refinance?
How would you handle it if you already own your car...and then started your LLC? Any suggested apps to handle tracking expenses etc?
I need to go buy me a truck ..maybe a ford raptor... put in my llc..ill write off the payments,fuel,etc.. Btw i only have one rental property. But im looking for deals every time i drive..
Exactly.
Sounds like you all are describing the 179 tax code... I've seen so far cars can only take up to 85% depreciation in the first year and the other 15% over 5 years, truck, Van's, SUVs over 6k weight limit is 100% in the first year as well as farm equipment can take the full price deduction... I'm not a tax attorney or CPA double check there however when asking, inquire about the 179 tax law.... 💜
What about the LLC car insurance. Will be higher than a personal car insurance?
You guys mentioned either or track miles or maintenance. I can't do both?
Correct, you are supposed to pick one or the other. The mileage rate 'includes all costs' to maintain the vehicle.
@@jsracing2 thank you for the info
You guys are amazing... love the powerhouse, great couple... anywho, I do landscaping and would love to purchase a truck for my LLC, and equipment -like the whole nine right now, year after year, I’ve been using (beating down/destroying) my family SUV my BMW X5, Nissan Armada and now Chevy Trailblazer by lugging my equipment. Wht would you suggest?
Buy a cargo van or truck.
I love the video, you guys broke down some very helpful tips on how to use an LLC for taxes. Thank You!!
hey clayton Lakeland bank in NJ for equity is 60% on appraised ltv. wtf. why so little when othere are 75% would u go for that?
As owner of a multi family home LLC, HomeDepot, Lowe’s, pluming etc purchasing material, does that count as a reason to write off a vehicle?
Chan Chan yes, because you have to do xyz for your business..! You’re not driving a car to sit in an office-you picking up stuff from various places, dropping it off, meeting prospects and contractors, etc.
Great Video ! I need to buy a pick-up truck for my remodeling business does it have to be a certain weight such as F-350 vs Tacoma for tax write off/ depreciation I have an S-Corp ? Are there rules for what is considered a work truck ?
This is a great question! I wouldn’t think so, but check in with your CPA.
Look at Mark Kohler CPA on youtube. He covers this topic.....
I heard they won't allow the write-off if you left the office for bussiness then went home from meeting?You have to return back to the office.
Hello. Does a DBA provide the same protections? Thanks ... would the irs still view me as a risk leading to an audit?
You can also use MileIQ to track millage
Thanks for the tip, DJ!
And pay monthly for it!
@@MP-wz3bu business expense.(deductible)
I was under the impression that grooming/fitness/health/clothing expenses are generally not deductible? Is there a loophole for actresses on youtube videos that doesnt apply to general meetings? Also, if meeting with investors and impressions mean everything, would not a luxury vehicle be a legitimate expense? I know that private companies are able to purchase luxury vehicles with pretax dollars (told so by a luxury car salesman) so I was hoping your video would touch on these details
I don't know were you got that from. Everything is tax deductible depending on your profession. Anything used to operate your business is tax deductible. Including meals, catering and business "vacation trips" to Hawaii, Las Vegas or London...
What about the section 179 rule? If I buy a 6,000 lb vehicle, can that be used on top of it for an added advantage?
might of missed this but why do u keep saying you can do these things with "pretax dollars"? is it pretax bc the monthly contributions from cash flow into the llc are pretaxed?
also if my llc is in indiana but i live and drive and register my car for NY, can i still deed it into the llc to take adv of those benefits?
Because you deduct your expenses and are not taxed on them. Hope that helps.
Im just so happy you dont smoke!!!
Would I need commercial auto insurance?
Just stumbled upon your channel. Really like.👍 just subscribed.
Good stuff.
Thanks, Gilbert! So glad to have you here! Are their any topics you'd like to see us cover?
can you do it for a truck dumpster rent business.
I started an LLC that is a landscaping business. I own a truck that is needed and used for the landscaping business. How do I capture these truck expenses for my LLC?
I'm an accountant and the hair blowout is not legit. Lots of people including me think it should be but it's not. She just hasn't ever been audited, at which point the IRS would disqualify it. Clothes aren't either unless they are "safety" clothing or "logo" gear. I wrote a book on all the things that are write offs, which might be a good read for people who find this interesting.
so can u tell me how t would transfer my car title from my person (assumed business name) to me the man so it's out of the State/state (s) jurisdiction plz ? I'm having trouble finding right knowledge but I need to get this done .
In regards to wholesaling when we drive for dollars we can buy use this loophole?
Probably, ask your CPA!
Peace and Blessings! No one could answer this for me. Amazing! I have set up my LLC as an independent business and I purchased a vehicle 2 months prior that I want to convert it to my business expense. Is this possible still. I am considering refinancing it as an option before trading it for a better vehicle option. I would love to speak with you about this matter!
The car is a mustang ecoboost but it doesn’t compliment the business as far as the need to transport cargo (music equipment)
Very likely! Contact your CPA for tax advice.
is it the same process from an scorp or different
I am still making payments on my car note. How do I transfer it over to my business? Do I get loan through my business to pay off what's left and have the car in my business name? And how do I write off my expenses?
Hi Fortis, please contact your CPA for tax advice. If you need a recommendation, we work with WealthAbility. morrisinvest.com/taxes
Can I buy a car from myself with my business? Will the taxing excise etc negatives outweigh the positives? It’s an old truck for lawn care and house cleaning pressure washing
Great video! I’m now planning to get a vehicle for my business... this video was right on time! Thanks guys!
Perfect, glad we could help!
Question: Since my real estate business (llc) is still very young (less than 2 yrs) with very limited business credit history, can I purchase a work truck under my personal name (good credit history) for business only, and still get all the tax advantages that come with it e.g. deducting 100% of this expense on my 2019 taxes in the 1st yr?
Yes, you can contribute capital to your business. Please make sure you’re working with a knowledgeable CPA!
@@RedactedNews Thanks.
I’m in Pennsylvania and this video greatly helped me in what I wish to do with my start up/ business
Great looking couple. I enjoyed the lax, natural dialog while digesting the offering of great business structuring wisdom, well translated, and provided by this channel. Thank you for your assistance and insight.
What i was looking for mainly is when i buy a van for my business . Is there a way to buy it under my business name INSTEAD of my personal name? And will it still be on my debt to income ratio on my credit report? Like will it still show on my report? Guessing yes...
I subscribed today, iv watched a few of your videos, and I really learned alot.
I have life coaching business and was thinking of getting a van and doing conversion on it so i can travel to the client and do sessions in van or wherever they want to meet. The conversation would save me from staying in hotel etc business experience. If I stay in van. I can convert the van from bedroom to office when needed. What can use suggest in this case from your understanding?
You mention LLC’s quite often but I myself don’t have a wife or business partner that would enable me to qualify for an LLC and I want to invest in real estate alone. Am I able to get the same exact tax benifits in an S. Corp for example as i would get in a traditional LLC or are there any differences? Could you make a video on this if possible? I would like to know what other Corporations would qualify for these tax breaks and if it would be a right fit for real estate investing. Thanks!
You do not need a partner to have an llc. Talk to your accountant about llC vs S Corp. Even investing in rental property as a single person a LLC is the way to go.
Rick is correct, you can have a single-member LLC. If you need help setting up your entity, check out morrisinvest.com/llc
Rick Kern I understand, but if I’m ever sued by a tenant the judge could easily not have my company viewed as an LLC once he sees me as a single owner and slap me with full liability. How do I protect myself from that happening?
@@Tamersworld No, if you separate your personal finances from your Corp you will be protected. An LLc has nothing to do with how many people own it. It can be owned by one person or twenty and the protection is the same. If properly run an LLC limits your liability in most cases to the assets in the LLC.
@@Tamersworld You are wrong... The judge will only disregard your llc if you do not follow the rules of running an llc. Talk to a lawyer---you are not listening to me.
How do I find out what you charge for training and what strategies do you teach
How long do to need to have your LLC To get the car under llc
So, I could buy a truck/ trailer under an LLC if I started a service business?
I am wondering what type of Webcam you're using for your PodCast?
I never thought about getting a car for my business.
Wealthbuilderz TV I did..but I need to incorporate first..