@@karltondennis Hi Karlton If I purchase a car for 80K on my business and get 20% depreciation every year After 5 years ( 100% depreciation) I decided to sell it and I am able to sell for 35k. Do I need to pay tax on 35K?
@@DiscipleofChrist-Yeshua Yes. Your basis would be $0 and you would have a long term capital gain of $35k. Long term capital gains are currently taxed at more favorable rates than any other type of income.
Glad I found you. I hired a CPA to analyze my new business plane and start my journey as a entrepreneur because I could not agree more. Build wealth better by using the ones that now how wealth is regulated!
It appears the IRS rules changed starting tax year 2020 so you would NOT be able to fully depreciate the G-Wagon starting tax years 2020 and onward. Per IRS: "You cannot elect to expense more than $25,900 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service in tax years beginning in 2020. This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. However, the $25,900 limit does not apply to any vehicle: Designed to seat more than nine passengers behind the driver's seat (IE: a large cargo van); Equipped with a cargo area (either open or enclosed by a cap) of at least 6 feet in interior length that is not readily accessible from the passenger compartment (IE: a truck); or That has an integral enclosure fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield(IE: Sprinter van, etc)."
It's interesting how people look at me so confused when tell them about writing off supper cars. Many are like why waste you money on the car, I point out would you rather pay IRS or buy the car? Then have to explain how cars like this helps with brand perception, marketing, and meeting people. Wish more people would post more like what your doing. As well wish more CPAs and or accountants would learn how things work and help people when things change. So many accountants and cpa's that didt know can make money on youtube or understand how, as well dont understand the ones doing car content on youtube. They dont understand how they can write off the car for content and feel like something not being done right. Still to this day hard to find people that can help correctly.
Can we talk about how CUTE he is for a moment?!?! No seriously, thank you SO much Karlton, for such in-depth explanations of the tax details. Off to shop for my new business car....
Should mention recapture issues when giving accelerated depreciation advice on vehicles. You mentioned the at least 50% use but didn’t hear you explain what happens when the vehicle ceases being at least 50% business use.
This got me excited, until you claimed an s550 was a wagon. And/or weighed over 6,000lbs. The clip showed a G 63 wagon, sure. However curb weight still doesn't surpass 6k. Wet weight does. Not sure which specifically it falls under.
Great content on video. I liked and subscribed (so no hate) BUT I was thinking the same thing. Not many highway rated vehicles are over 6000 lbs... including the G63. I would love some clarification because I would like to implement this strategy
You may have mentioned this elsewhere, but the vehicle itself doesn’t have to weight 6,000 pounds as long as the Gross Vehicle Weight Rating is >6,000 lb (the loaded weight). Thanks !
@@karltondennis Has this video come out? I'm going to start up an e-commerce and plan to have decals and/or paint job to advertise it. Would this be a beneficial move?
I hate people who call a new vehicle their dream car. Your dream car is supposed to be the car you grew up dreaming about not the one that just came out
Shouldn't I consider where I am within a tax bracket and where I plan to be in the future? Example, if I have $20k of income taxed in the 32% bracket, and I buy 100k car, aren't I better taking a savings of 32% of 20k in each of 5 years (32% of 100k total, for a $32,000 tax savings) rather than taking the 179 acceleration in just one year saving 32% of 20k and 24% of 80k (only a $25.6k savings)?
Not all deductions work for everybody's tax situations. That's why it's important to find someone that knows all of the tax codes so that they can find the ones that fit you.
This might be a stupid question, but if you get a vehicle and have a wrap done on it that promotes your business, then is it technically being used for business every time you drive it? How does the tax code view that?
Didn't the tax code change about the 179 depreciation/writeoff? I saw another video talking about it that its now limited to $25k for vehicles between 6k to 14k pounds.
Good thing she bought that vehicle in 2019. . . Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2020 is $25,900. So she wouldn't have been able to write off that much in 2020.
Quesiton. Was the $155k Gwagon all written off? Because those cars run for $180k-$220k? Was $155k the amount that was allowed to be written off from the entire Cost of the car?
Plus I take care of my mom that's disabled but say I can do anything for taxes. Plus all her meds an bills she has to be able to file more but they always say no. Blows my mind someone that spends social security money on drugs etc an get nothing
Doesn’t Section 179 apply only to SUVs with a GVWR of 6,000lb? I just financed a Porsche Taycan 4S and assumed I would only be able to take bonus depreciation...it’s a sedan weighing over 6,000lb
I am really enjoying your videos. Keep up the good work. Can any of these technique be used when I have a full time job (W2) along some side businesses?
I used to be self employed and wrote off my vehicle by the mileage, and now I’m looking at entering the world of U-tube and i want to get a vehicle that weighs 2001 lbs. How could I/we claim U-tube a business with the vehicle if ii/we don’t have a huge following before i purchase the vehicle ?
So, what if you get a new car and get it wrapped in an advertisement, can you write off the whole car, the wrap and everywhere you drive? You can always say that when you were driving to do anything that you were advertising, right?
Looking at buying a small pool company, ( 50k income a year) should I develop the LLC then buy a vehicle or can you transfer it over to the company as a business vehicle after?
If you vinyl wrap it with your logo/slogan etc. does that make it 100% business related? Since its basically a traveling billboard constantly advertising for you?
Hey Karlton! Can one utilize both methods if they have two different vehicles for difference uses? Example: Utilizing the actual deduction for a truck typically used in town for shorter distances & the mileage deduction on a vehicle used for long distance highway commuting (500+ miles per week). Thanks!
What happens if we buy a car under a LLC then get into a accident can the other party Sue is for all we have if our insurance company doesn't cover all the other parties medical bills also when we are looking up the weight of vehicles do we look at curb weight or gross weight my curb rate is 5500 my gross is 9000 ?
This channel is going to grow.
Thank you brother! continue to share videos to your peers!
@@karltondennis social media?
@@karltondennis
Hi Karlton
If I purchase a car for 80K on my business and get 20% depreciation every year
After 5 years ( 100% depreciation) I decided to sell it and I am able to sell for 35k.
Do I need to pay tax on 35K?
Karlton thank u for the video very informative, how can I contact you?
@@DiscipleofChrist-Yeshua Yes. Your basis would be $0 and you would have a long term capital gain of $35k. Long term capital gains are currently taxed at more favorable rates than any other type of income.
To write off that G550, you had to use Bonus Depreciation also. The special equipment purchase of code section 179 at 25,500 in 2019
First time I heard bonus deprecation
Super underrated intro, let's jump RIGHT in!!! straight to it
Glad I found you. I hired a CPA to analyze my new business plane and start my journey as a entrepreneur because I could not agree more. Build wealth better by using the ones that now how wealth is regulated!
Keep it up!
It appears the IRS rules changed starting tax year 2020 so you would NOT be able to fully depreciate the G-Wagon starting tax years 2020 and onward. Per IRS: "You cannot elect to expense more than $25,900 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service in tax years beginning in 2020. This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. However, the $25,900 limit does not apply to any vehicle:
Designed to seat more than nine passengers behind the driver's seat (IE: a large cargo van);
Equipped with a cargo area (either open or enclosed by a cap) of at least 6 feet in interior length that is not readily accessible from the passenger compartment (IE: a truck); or
That has an integral enclosure fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield(IE: Sprinter van, etc)."
Most useful comment, so of course it's totally buried.
You’re my new go to tax guy for advice brotha 🙌🏼🙌🏼
Yep! I second that!
Appreciate it
It’s good info, but you still need a cpa
It's interesting how people look at me so confused when tell them about writing off supper cars. Many are like why waste you money on the car, I point out would you rather pay IRS or buy the car?
Then have to explain how cars like this helps with brand perception, marketing, and meeting people. Wish more people would post more like what your doing. As well wish more CPAs and or accountants would learn how things work and help people when things change. So many accountants and cpa's that didt know can make money on youtube or understand how, as well dont understand the ones doing car content on youtube. They dont understand how they can write off the car for content and feel like something not being done right.
Still to this day hard to find people that can help correctly.
I am committed to self-development & thriving.
Can we talk about how CUTE he is for a moment?!?! No seriously, thank you SO much Karlton, for such in-depth explanations of the tax details. Off to shop for my new business car....
The absolute best & most engaging tax strategist on You Tube! His stuff is fun, fresh & super informative! Keep it coming, Carlton!😁
Definitely had to save this video and subscribe! Great work bro!
Awesome, thank you!
Oh my god, this is the best and most helpful video I’ve seen. Your explanations are so crystal clear thank you so much!!
Great to see a fellow entrepreneur on the platform! Welcome! Subscribed!!
Thank you Fares! i will subsribe to your channel now
Should mention recapture issues when giving accelerated depreciation advice on vehicles. You mentioned the at least 50% use but didn’t hear you explain what happens when the vehicle ceases being at least 50% business use.
This got me excited, until you claimed an s550 was a wagon. And/or weighed over 6,000lbs.
The clip showed a G 63 wagon, sure. However curb weight still doesn't surpass 6k.
Wet weight does. Not sure which specifically it falls under.
Great content on video. I liked and subscribed (so no hate) BUT I was thinking the same thing. Not many highway rated vehicles are over 6000 lbs... including the G63. I would love some clarification because I would like to implement this strategy
@@mlee9049 Nice! That’s what I can a double dip. Thanks!
What about accessories for a vehicle? Lift, wheels & tires, exhaust, etc.
You may have mentioned this elsewhere, but the vehicle itself doesn’t have to weight 6,000 pounds as long as the Gross Vehicle Weight Rating is >6,000 lb (the loaded weight). Thanks !
Also, is 100% bonus depreciation applicable to luxury SUVs? Thought it was only applicable to trucks/vans etc.
Gross vehicle rate
Not limited!
I'm slowly absorbing your helpful knowledge. Ty
Nicely done. Clearly articulated. Keep it up!
Thanks, will do!
This guy is going places. Accounting rock star!
So if I'm Financing a vehicle over 6k pounds I can write off 100% of the payments if its 100% for business ? Also can I get the depreciation too?
bro you are so good at sales
I love your content and your bubbly character! Keep it coming!
Great video. I’m in the market for a car as an entrepreneur also so this was very helpful.
Glad it was helpful!
Wow this was great and really useful, Ive heard a lot of tax videos this was the best one ive ever watched simple and easy.
Wow bro! Amazing channel. Subbed and sharing these videos.
Wow, no jumpcuts. That is amazing!
How can someone prove to the IRS that they’ve used the vehicle for business? Are there certain documents?
Video on this coming soon!
@@karltondennis Has this video come out? I'm going to start up an e-commerce and plan to have decals and/or paint job to advertise it. Would this be a beneficial move?
@@joelong6731 possibly a wrap?
saving this video so I can come back to it later when I have my mclaren that I need help writing off
Love it
Excellent .. loving the jewels that you’re dropping!! Subscribed!
I hate people who call a new vehicle their dream car. Your dream car is supposed to be the car you grew up dreaming about not the one that just came out
Hey Karlton - can you do something like this but for Turo owners? How to categorize an LLC and the write offs?
You are a great teacher
Very excited about this information! Thank you 🙏🏾
You are so welcome!
Finally something useful in TH-cam!!
Thank you for the info !! Subscribed..
Thank you!
You have a great personality; very likable dude
You sound like a smart dude, great advice 👌🏼
Thanks Karlton!
Anytime
Bravo! Great info! Hope your channel grows exponentially!
I hope so too!
Bro I really appreciate your videos. They are very informative. Keep up the good work.
Thanks, will do!
Thanks for the game!
Shouldn't I consider where I am within a tax bracket and where I plan to be in the future? Example, if I have $20k of income taxed in the 32% bracket, and I buy 100k car, aren't I better taking a savings of 32% of 20k in each of 5 years (32% of 100k total, for a $32,000 tax savings) rather than taking the 179 acceleration in just one year saving 32% of 20k and 24% of 80k (only a $25.6k savings)?
Not all deductions work for everybody's tax situations. That's why it's important to find someone that knows all of the tax codes so that they can find the ones that fit you.
Boom..love the information
Great vid big dog ✊🏾
Incredibly easy to digest sir!!! Much appreciated!
Your content is good. Keep up the good work!
Thanks so much I’m trying to be great in life 🙌🏾
You got this!
FYI, if the car is owned and deducted by the LLC, personal use may be income to the LLC member.
I just started seeing your channel. I have learn a lot from you. Thank you for your educational system.
This might be a stupid question, but if you get a vehicle and have a wrap done on it that promotes your business, then is it technically being used for business every time you drive it? How does the tax code view that?
Dope content bro, very helpful and informative!
should i buy or lease a car that i am planning on using for business expense; car renting (turo)
Lease it
God bless you , your posting A1 context about tax stuff .
Thanks!
Dimes and Gems 💎
Splendid video, my friend!
You have a new sub!
Karlton - Excellent info and great YT channel. Definitely worthy a subscribe.
Didn't the tax code change about the 179 depreciation/writeoff? I saw another video talking about it that its now limited to $25k for vehicles between 6k to 14k pounds.
Wow absolutely phenomenal information!
Glad it was helpful!
this is awesome I'm so glad i ran into this channel. Liked and subbed.
Welcome aboard!
This is great knowledge!! Thanks sir !
My pleasure
recently came across your channel, you are awesome man!
Great work bro!!!
Appreciate it!
I thought this was a gimmick just off the title of the video but the video is legit, I'm a CPA myself and the content is on point 👍
Good thing she bought that vehicle in 2019. . .
Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2020 is $25,900. So she wouldn't have been able to write off that much in 2020.
Thank you for your knowledge and helping us grow with you!! ❤❤
Great video. So if I leased a Lamborghini and use it for 100% business, I can write off the entire lease payment?
Quesiton. Was the $155k Gwagon all written off? Because those cars run for $180k-$220k? Was $155k the amount that was allowed to be written off from the entire Cost of the car?
Good question
This vehicle was paid for in full. Not always ideal for most people, obviously. But that was how this person was able to leverage this.
Good advice!✊🏽 I need more lll
S55 is a sedan
Super dope info!!
Glad I found your page!
Awesome and very interesting! Just subscribed
Welcome aboard!
Plus I take care of my mom that's disabled but say I can do anything for taxes. Plus all her meds an bills she has to be able to file more but they always say no. Blows my mind someone that spends social security money on drugs etc an get nothing
Doesn’t Section 179 apply only to SUVs with a GVWR of 6,000lb? I just financed a Porsche Taycan 4S and assumed I would only be able to take bonus depreciation...it’s a sedan weighing over 6,000lb
Very well presented . I’m a car guy and collector so this was very helpful
I am really enjoying your videos. Keep up the good work. Can any of these technique be used when I have a full time job (W2) along some side businesses?
Thank you! If you have a business you can leverage a vehicle deduction based on the percentage dedicated to business use
I used to be self employed and wrote off my vehicle by the mileage, and now I’m looking at entering the world of U-tube and i want to get a vehicle that weighs 2001 lbs. How could I/we claim U-tube a business with the vehicle if ii/we don’t have a huge following before i purchase the vehicle ?
You should probably wait then.
Great video. Thanks.
Glad you enjoyed
Just started watching your videos. I had to sub! Thanks for the information
So, what if you get a new car and get it wrapped in an advertisement, can you write off the whole car, the wrap and everywhere you drive? You can always say that when you were driving to do anything that you were advertising, right?
Looking at buying a small pool company, ( 50k income a year) should I develop the LLC then buy a vehicle or can you transfer it over to the company as a business vehicle after?
Thank you!
Thank you so much!!
Thanks for the info, I want to lease a car strictly for Business purposes. I will look into this method. ‼️‼️💯💯💯
Awesome video! Will watch a lot more of your videos! I have to say though isnt mileage spelt wrong?
You say “Vehicles over 6000 pounds” Does that include ALL vehicles? (Tanks, planes, cars etc.?)
You going use a tank for work? What do you do and how do i apply to your company?
Thanks for the info grat content
Any time!
Hi 👋 Just a Question 😊Can A Person Do Both Actual And Milage ?
So is it better to lease or buy the car? 🧐
How many cars can I write off in what time frame, what are the consequences/downsides. Can I sell written off cars repeatedly?
Amazing video
If you vinyl wrap it with your logo/slogan etc. does that make it 100% business related? Since its basically a traveling billboard constantly advertising for you?
Hey Karlton! Can one utilize both methods if they have two different vehicles for difference uses? Example: Utilizing the actual deduction for a truck typically used in town for shorter distances & the mileage deduction on a vehicle used for long distance highway commuting (500+ miles per week). Thanks!
Can you depreciate a used car? Even if you bought it 10 years ago, but are just now using it for business purposes?
Boom! You earned. New sub and I'm sharing with the squad. Thank you sir.
Are you able to use section 179 to offset short term capital gains?
Thank you.
What happens if we buy a car under a LLC then get into a accident can the other party Sue is for all we have if our insurance company doesn't cover all the other parties medical bills also when we are looking up the weight of vehicles do we look at curb weight or gross weight my curb rate is 5500 my gross is 9000 ?
Does business use include a commute? I think I’m conflating a personal mileage deduction with a section 179 deduction.
Just came across your channel, now a new subscriber 👍
Welcome aboard!
Is an Airstream or any king of 5th wheel deductible as well? If I am traveling and performing online business.
I like this dude 💵🤙🏼