Here is a link to the cheatsheet referenced in the video. www.hawthornlaw.net/deductions In my haste to get this uploaded a couple of weeks ago, I completely forgot to include this link in the description!
If you have an s-corp and have a home office what about art bought for the home office. That doesnt have wear and tear, and isn’t really depreciable. But is considered valued and treasured?
Hey! Thank you for this video. There are some great information here. I see that we are still able to deduct mileage and some business expenses. If I have not done all mileage on the business, can I still do that on my personal after I received my w-2 and k-1 and how. I can seem to find it. I am very interested in a one on one consultation 843957-4812
During the early 2010s, the IRS started investigating captives for abusive transactions. In 2016, the IRS published Notice 2016-66 in which the agency advised that micro-captive insurance transactions have the potential for tax avoidance or evasion. The IRS filed suit against companies paying premiums to captives and won three major lawsuits starting in 2017. The Tax Court articulated four factors that indicate an arrangement constituting insurance: Insurance risk, Risk shifting to the insurer, Risk distribution, and Commonly accepted notions of insurance. In these three cases, the Tax Court concluded that contracts between the captives and defendant companies had not passed the risk. In 2019, the IRS offered settlements to companies paying premiums to captives, which the IRS reported were accepted by 80% of the companies receiving such notice. The IRS will audit all small captives. Google Lance Wallach and your advisor, who do YOU think is better?
I've recently found your channel and have found it quite useful despite not being an internet/online business, I am a single member LLC. I usually listen more than watch your videos as I usually listen while doing other tasks that don't require too much thought. This time however, I watched enough to notice somethings in the background that I found quite interesting and I can't help but comment on. GO BROWNS! O-H!
I'm sooo glad i found you I just TRIED to file LLC for my salon suite and I think I totally screwed up on what I needed to do or do the right file. I don't know I never done this and it took me 10 years to finally take things on for myself. I know now to fix I'll probably have to pay $80 just to fix then pay to file oh my goodness. so your videos are watched repeatedly great vids
Thanks for the videos you are making they have been so helpful to me with just starting my online business and helping learn what I need to know to start off on the right foot.
Thank you for the great series! I did want to mention something. At least in Alabama, whatever you contribute to a Health Care Account, you lose any excess funds at the end of the year.
1. office expenses, technology etc. 2. cell phone and services 3. travel expenses 4. meals - for travel check per diem based on destination cities; 50% of meals during which you talk business 5. 20% of profit as self employment deduction 6. mileages - 58cents per mile 7. retirement - SEP IRA allows deposit 9 months later bonus 1. health saving account 2. elect S corp status
Thank you so much for this very informative video! Also I was listening to this in my car and the ending music was booming! Never thought taxes and bass can go together in one video. Just awesome!
Great content, thanks so much! I’m a travel photographer, don’t yet have a business set up and that’s how I found your page. I could he writing off hotels and mileage for “vacations” if I’m out shooting every day?
Can you make a video about "disregarded entity" tax deduction for LLC's that are shared with spouse specifically in states that are community property states.
Loved the video! Can you make a video talking about how to file for taxes for an LLC? Such as wether to do cash or accrual, corporate income tax or partnership income tax etc.
If you arent a large business with a bunch of legal requirements and employees going llc and opting for s for taxation is great. First you create and llc then you have to send in a letter to the federal government requesting s corp taxation. If you are asking the accrual vs cash question just do cash method, theres way too much work needed to operate an accrual accounting methodology.
QBI deduction for LLC & S Corp is probably the best one. The only issue with LLC & S-Corp is you cannot deduct health insurance. You could leverage both if you set up both an LLC\-S-Corp and C-Corp. Invoice some revenue to the C-Corp to cover healthcare insurance & some wages, than use the LLC\S-Corp to make use of the QBI. Some deductions not included in this video: 1. Utilities such as internet. I presume every business uses internet service for business use. Also phone land-line or VOIP service if you are using it for your business. 2. Meals, if you are working remotely & need to grab meals while on the job you can expense them. Keep your meal receipts 3. Continuing education: This could be books, trade shows, seminars, and costs associated with educating yourself for business needs. 4. Office equipment: Copier, desktop PCs, laptops, tools, etc. Note usually for equipment owned by the business are subject to property tax, and depending on the cost of the item, you may need to amortized the expenses over several years. 5. Business losses: considering how bad 2020 is for most small businesses, & you had a net loss, you can usually write off the lost in the following year. Note its important to keep any reciepts, invoices or paperwork for anything you submit for tax deduction. Its very likely you business will be audited at least once, even if you done nothing wrong. State revenue agencies usually do random audit on small businesses. As long as you retain all of your expense paperwork, you will be fine.
Actually you can deduct health insurance that your business pays on your behalf. It gets reported as income on your w-2, and then you can deduct it on your 1040. I have done this for years. You just have to remember to run a year end payroll and add in the sum total of health insurance payments for the year.
Hi Jim thanks for all the helpful content and information. I’ve got one question I hope you can answer. If I’ve got a regular 9-to-5 job, but I started my own LLC on the side, how should I file my taxes? Can I file them separately or do they have to be filed together?
I also have a full time job and an LLC on the side. I hired a business tax accountant who files my business taxes and I do my personal . You have to wait until your business taxes are filed before you file your personal if you chose to file them separate. I'm in Texas. Check in your state how tax requirements are in this subject
There isnt a “should”. Depending on how many members of the llc and what kind of taxation entity you have (s corp or not) it changes what you have to do. You dont get a choice. For llc taxed as s corps u have to file llc tax return first and separately then get a k-1 issued to the members who then use that to fill in personal tax return. For a single member llc not taxed as s corp i cant remember but i think u just file on your personal tax return.
OH-IO. My BF and biz partner is a huge Ohio State fan. Definitely sending him this video. Question: If we have short term vacation rental LLC, do we pay for meals, mileage and office supplies from our LLC credit card or our personal credit cards as an Unreimbursed expense? I thought if you pay out of your LLC bank account or are reimbursed by your company you cannot deduct it on your personal return???? Thanks!!
Hello. On a S-Corp, do you need to pay yourself via Payroll (getting a W2) at the end of the year or can you just pay yourself by withdrawing directly from the bank account without deducting any taxes and pay them when filing your taxes?
I recommend having an accountant create a W-2 that is included with your annual tax filing. Less chance of creating red flags. FYI: I am not an accountant but a small business owner.
Thank you for your informative videos! If I am traveling one hour each way daily for my business (education consultant/tutor), I assume my car payments, gas, and meals along the way are a deduction? Does that count under your "travel" category for deductions?
Hello! Thank you for the lovely video! I have a question: I do not drive and I don't have a license, but I often rent a car through my boyfriend who would drive me to get supplies. Sometimes I would take a taxi to get to the store for supplies. Does that count as tax deductible?
Business rentals, yes. Business supplies, yes. Business cab expenses, yes. Make sure to keep your receipts to document the charges in addition to documenting any emails, contracts, or screenshots of your taxi/Uber/Lyft rides with notations, explaining why the trips were necessary for your business.
Great video, I appreciate the content. Just one question, I know you are in North Carolina but Are all these rules and laws just for North Carolina or are they for all 50 states? Thanks again
If you mean the deduction for 1/2 of self-employment tax, when you fill out form SE (which is used to calculate SE tax), you would calculate the deduction on that form, and the instructions on that line of the form would direct you to the line of the 1040 where you should put the deduction. I don't remember the line off the top of my head, but it's clear on form SE how to carry it over to the 1040.
At around 6:20 you mention paying yourself as an employee why wouldn’t you take advantage of paying yourself as an owner and not paying payroll taxes etc.? Thanks!
How do you buy stuff that's a business expense when you have a business bank account? do you take your debit card with the llc name to the store to buy things or just buy with your personal card and reimburse yourself by writing a check from the llc to yourself?
Q: I am building a 2-story garage that will be 50% for my business. How do I deduct this 50% and the other site-related costs to build it, ASAP. I could use the deduction on my 2021 taxes. Thanks
Hi, how are you? I am so glad to find your channel. Thank you so much for your information. GO BROWNS, I just wandering if you are taking clients now and if you are not, can you suggests anyone in the land city. Thank you
Im from Rhode Island and I started my online last year but I never got any sales even with marketing expenses, travel expenses, meeting referral. Etc... can I still do Sched C? Tia.
Make sure your getting a verification on your odometer reading throughout the year and that those miles match up with you log miles or they will rip those amazing deduction away and you’ll be audited if those miles are 2x’s std yearly miles to work number they estimate. Funny how in my audit for this exact thing was nowhere to be found in their rules/laws just make up as they go.... grrrrrrr. Lol
Thank you for the detailed tips. I have a separate question. Do an LLC pay taxes when it purchases supplies to build a product. For example, I need to buy components to build a robot do I have to pay sale taxes when I buy the parts? I'm asking because restaurants dont pay taxes when they purchase groceries. Thank you,
Thats because food itself is exempt from taxes. Most things outside of food has a sales tax. Any person or business entity (llc, c corp, etc) has to pay taxes when buying supplies.
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
Here is a link to the cheatsheet referenced in the video. www.hawthornlaw.net/deductions In my haste to get this uploaded a couple of weeks ago, I completely forgot to include this link in the description!
If you have an s-corp and have a home office what about art bought for the home office. That doesnt have wear and tear, and isn’t really depreciable. But is considered valued and treasured?
Hey! Thank you for this video. There are some great information here. I see that we are still able to deduct mileage and some business expenses. If I have not done all mileage on the business, can I still do that on my personal after I received my w-2 and k-1 and how. I can seem to find it. I am very interested in a one on one consultation 843957-4812
During the early 2010s, the IRS started investigating captives for abusive transactions. In 2016, the IRS published Notice 2016-66 in which the agency advised that micro-captive insurance transactions have the potential for tax avoidance or evasion. The IRS filed suit against companies paying premiums to captives and won three major lawsuits starting in 2017. The Tax Court articulated four factors that indicate an arrangement constituting insurance:
Insurance risk,
Risk shifting to the insurer,
Risk distribution, and
Commonly accepted notions of insurance.
In these three cases, the Tax Court concluded that contracts between the captives and defendant companies had not passed the risk. In 2019, the IRS offered settlements to companies paying premiums to captives, which the IRS reported were accepted by 80% of the companies receiving such notice. The IRS will audit all small captives.
Google Lance Wallach and your advisor, who do YOU think is better?
Thanks for the Info, filed for my LLC yesterday! I've still got miles and miles to learn.
How’s it going with your LLC, Jared?
Same! 🤞🏾
1. Office supplies
2. Cellphone + cellphone service
3. Travel
4. Meals
5. 20% self employment deduction
6. Mileage
7. Retirement
I've recently found your channel and have found it quite useful despite not being an internet/online business, I am a single member LLC. I usually listen more than watch your videos as I usually listen while doing other tasks that don't require too much thought. This time however, I watched enough to notice somethings in the background that I found quite interesting and I can't help but comment on. GO BROWNS! O-H!
I'm sooo glad i found you
I just TRIED to file LLC for my salon suite and I think I totally screwed up on what I needed to do or do the right file. I don't know I never done this and it took me 10 years to finally take things on for myself. I know now to fix I'll probably have to pay $80 just to fix then pay to file oh my goodness. so your videos are watched repeatedly great vids
Thank you for the Tips! Small cleaning company from Cleveland, Ohio
I love the outtro track😂😂👌
Thank you, thank you, thank you! I just started filing LLC and your channel is so so helpful!
Thanks for the videos you are making they have been so helpful to me with just starting my online business and helping learn what I need to know to start off on the right foot.
Thank you for the tips, Jim. You brought up some stuff that I had not yet considered. By the way, I like your ring light setup up. Looking good!
Love what yall do I really apricate it!
Thank you so much for making these videos! Go Bucks!
I appreciate all the good information you provide. It really helps. Thanks
Wow loved this video!!!
Thank you for the great series! I did want to mention something. At least in Alabama, whatever you contribute to a Health Care Account, you lose any excess funds at the end of the year.
Thank you, Mr.Haythorn. As a small busienss owner, trying to go solo, this information is absolutely invaluable. to me.
Thanks for making these videos! They’re a huge help in pointing me in the right direction.
1. office expenses, technology etc.
2. cell phone and services
3. travel expenses
4. meals - for travel check per diem based on destination cities; 50% of meals during which you talk business
5. 20% of profit as self employment deduction
6. mileages - 58cents per mile
7. retirement - SEP IRA allows deposit 9 months later
bonus
1. health saving account
2. elect S corp status
This video was SOOOOOO awesome. I am a new small business owner and this helped me substantially!
Thanks for the great video. Awesome! Just subscribed. Looking forward to more helpful videos!
🔥 video hella informative
Thank You very much for all of this info! We are now on your list! Friendly feedback on your audio...intro & outro music is quite loud😉
Great video ✌️
Wish there was a "LOVE" instead of "Like"...you are awesome! Great information and the video music is well matched to the topics.
Thank you!
What a helpful video! Thank you!
You’ve motivated to start my own channel.
You may be one of the Internet's best kept public secret. I have subscribed. I am enjoying this free education.
this video is gold
Great video.
Thank you so much for this very informative video! Also I was listening to this in my car and the ending music was booming! Never thought taxes and bass can go together in one video. Just awesome!
Very informative video! Thanks Hawthorn!
Love your advice and tips. I hope this applies to 🇨🇦 businesses too. New subscriber! 🥰🥳
Do you have a video for rideshare drivers?
just subscribed! thank you for this.
Thank you for your advices. I hope that in New York, I can consider them.
Appreciate you for making these videos! This is ALOT of great info!
Great Video
I love it very useful and simple easy to understand THANK YOU FOR WHAT YOU DO ! It’s definitely very beneficial to the business owners
Thank youuuuuuu!!! Great advice😀😀😀😀
Thanks for sharing!
I wish u taught us in high school. I would saved so much $$$$. Thank U. Coffee break was kinda too. 👍
Bingo. This is exactly what we should be learning in school. not humanities nonsense
Let’s say I bought a piece of furniture cash from someone on offer up can I write that off?
Great stuff mate..
Thank you!
Thank you for this awesome video you have given me so much powerful and positive information to help my business.
Go Bucks! Love your Vlogs!
Great content, thanks so much! I’m a travel photographer, don’t yet have a business set up and that’s how I found your page. I could he writing off hotels and mileage for “vacations” if I’m out shooting every day?
Great info. Thanks.
Jennifer Edwards. Agreed!
Can you make a video about "disregarded entity" tax deduction for LLC's that are shared with spouse specifically in states that are community property states.
Thanks!! Can you do a video advice for starting a Turo hosting business - for single and multiple member. What makes the most sense LLC or S Corp?
So helpful!
Loved the video! Can you make a video talking about how to file for taxes for an LLC? Such as wether to do cash or accrual, corporate income tax or partnership income tax etc.
If you arent a large business with a bunch of legal requirements and employees going llc and opting for s for taxation is great. First you create and llc then you have to send in a letter to the federal government requesting s corp taxation.
If you are asking the accrual vs cash question just do cash method, theres way too much work needed to operate an accrual accounting methodology.
Lol I’m a Michigan fan good luck next year on your guys season if we have one
Great stuff . Keep it up
#8:: Business credit card interest, loan interest, and banking fees.
Regarding the mileage, would you pay yourself monthly or at the end of the year?
Did you ever make a video on the 20% Employment tax? I can't find one. Great vids btw!
Great video, i will have to look into what can be applied here on the UK
QBI deduction for LLC & S Corp is probably the best one. The only issue with LLC & S-Corp is you cannot deduct health insurance. You could leverage both if you set up both an LLC\-S-Corp and C-Corp. Invoice some revenue to the C-Corp to cover healthcare insurance & some wages, than use the LLC\S-Corp to make use of the QBI.
Some deductions not included in this video:
1. Utilities such as internet. I presume every business uses internet service for business use. Also phone land-line or VOIP service if you are using it for your business.
2. Meals, if you are working remotely & need to grab meals while on the job you can expense them. Keep your meal receipts
3. Continuing education: This could be books, trade shows, seminars, and costs associated with educating yourself for business needs.
4. Office equipment: Copier, desktop PCs, laptops, tools, etc. Note usually for equipment owned by the business are subject to property tax, and depending on the cost of the item, you may need to amortized the expenses over several years.
5. Business losses: considering how bad 2020 is for most small businesses, & you had a net loss, you can usually write off the lost in the following year.
Note its important to keep any reciepts, invoices or paperwork for anything you submit for tax deduction. Its very likely you business will be audited at least once, even if you done nothing wrong. State revenue agencies usually do random audit on small businesses. As long as you retain all of your expense paperwork, you will be fine.
Actually you can deduct health insurance that your business pays on your behalf. It gets reported as income on your w-2, and then you can deduct it on your 1040. I have done this for years. You just have to remember to run a year end payroll and add in the sum total of health insurance payments for the year.
Nice to know-. You considered online businesses. Thank you
How would you provide receipts from purchasing inventory from places you don’t receive receipts from? etc. Yard sales, Facebook marketplace meetups
Is it necessary to get a business telephone line for a bigger tax write off or using my personal cellphone good enough?
So much good information,,,a question ...When I request an invoice from my supplier should I use my doing bussiness as or my LLC ???
Hi, what is the difference between deducting for mileage and deducting for travel?
Nice outtro and vid once again 💯🦁👑
If i have regular job and a self business can max out both accounts
Hi Jim thanks for all the helpful content and information. I’ve got one question I hope you can answer. If I’ve got a regular 9-to-5 job, but I started my own LLC on the side, how should I file my taxes? Can I file them separately or do they have to be filed together?
It's better to file together. But definitely get a financial advisor to do it for you. They will ensure you get all the tax credits.
I also have a full time job and an LLC on the side. I hired a business tax accountant who files my business taxes and I do my personal . You have to wait until your business taxes are filed before you file your personal if you chose to file them separate. I'm in Texas. Check in your state how tax requirements are in this subject
There isnt a “should”. Depending on how many members of the llc and what kind of taxation entity you have (s corp or not) it changes what you have to do. You dont get a choice. For llc taxed as s corps u have to file llc tax return first and separately then get a k-1 issued to the members who then use that to fill in personal tax return. For a single member llc not taxed as s corp i cant remember but i think u just file on your personal tax return.
great personality, enthusiasm, knowledgable, great guy !!!
OH-IO. My BF and biz partner is a huge Ohio State fan. Definitely sending him this video. Question: If we have short term vacation rental LLC, do we pay for meals, mileage and office supplies from our LLC credit card or our personal credit cards as an Unreimbursed expense? I thought if you pay out of your LLC bank account or are reimbursed by your company you cannot deduct it on your personal return???? Thanks!!
Thanks for all your topics - Can you go into more detail on the QBI Deduction? finding it a little confusing...
Hello. On a S-Corp, do you need to pay yourself via Payroll (getting a W2) at the end of the year or can you just pay yourself by withdrawing directly from the bank account without deducting any taxes and pay them when filing your taxes?
I recommend having an accountant create a W-2 that is included with your annual tax filing. Less chance of creating red flags. FYI: I am not an accountant but a small business owner.
Thank you for your informative videos!
If I am traveling one hour each way daily for my business (education consultant/tutor), I assume my car payments, gas, and meals along the way are a deduction? Does that count under your "travel" category for deductions?
can you explain the 20% self-emloyment deduction?
Hello! Thank you for the lovely video! I have a question: I do not drive and I don't have a license, but I often rent a car through my boyfriend who would drive me to get supplies. Sometimes I would take a taxi to get to the store for supplies. Does that count as tax deductible?
Business rentals, yes. Business supplies, yes. Business cab expenses, yes. Make sure to keep your receipts to document the charges in addition to documenting any emails, contracts, or screenshots of your taxi/Uber/Lyft rides with notations, explaining why the trips were necessary for your business.
Great video, I appreciate the content. Just one question, I know you are in North Carolina but Are all these rules and laws just for North Carolina or are they for all 50 states?
Thanks again
How do you deduct the self employment deduction? What form do you use? What business structure fo you need?
Thanks so much for you videos!
If you mean the deduction for 1/2 of self-employment tax, when you fill out form SE (which is used to calculate SE tax), you would calculate the deduction on that form, and the instructions on that line of the form would direct you to the line of the 1040 where you should put the deduction. I don't remember the line off the top of my head, but it's clear on form SE how to carry it over to the 1040.
If you are a trucker you still can to the miles deducting
1. Office Expenses/Technology
2. Cell Phone & Service
3. (Business) Travel
4. Meals
5. 20% Self-Employment Deduction
6. Mileage (rate changes yearly)
7. Retirement
B1. Health Savings Account
B2. Elect S-Corp (tax strategy)
How does Diem meal works ?
I am in CT. Do you have a good reference on who I should contact to do tax? Thanks
Lots of OSU stuff back there. Are you located in Ohio (thus familiar with Ohio law)?
Went to OSU Law - live in NC now - am not licensed to practice law in Ohio as of right now.
At around 6:20 you mention paying yourself as an employee why wouldn’t you take advantage of paying yourself as an owner and not paying payroll taxes etc.? Thanks!
What is the best software or tax filing entities should you file your taxes with if you have an LLC.
So you use gusto and quickbooks together?
where is the deduction list in the notes?
You got yourself sub from AB
Thanks for the content
How do you buy stuff that's a business expense when you have a business bank account? do you take your debit card with the llc name to the store to buy things or just buy with your personal card and reimburse yourself by writing a check from the llc to yourself?
Go tigers! Hey, thanks for a great video!
Q: I am building a 2-story garage that will be 50% for my business. How do I deduct this 50% and the other site-related costs to build it, ASAP. I could use the deduction on my 2021 taxes. Thanks
Hi, how are you? I am so glad to find your channel. Thank you so much for your information. GO BROWNS, I just wandering if you are taking clients now and if you are not, can you suggests anyone in the land city. Thank you
I have an LLC and I want to enclose my covered back porch and use it as my home office, can the expenses be a tax deduction?
Im from Rhode Island and I started my online last year but I never got any sales even with marketing expenses, travel expenses, meeting referral. Etc... can I still do Sched C? Tia.
Ayeee Ohio state baby 💪🏾. Yea we got screwed. Thanks for all the info
Make sure your getting a verification on your odometer reading throughout the year and that those miles match up with you log miles or they will rip those amazing deduction away and you’ll be audited if those miles are 2x’s std yearly miles to work number they estimate. Funny how in my audit for this exact thing was nowhere to be found in their rules/laws just make up as they go.... grrrrrrr. Lol
How do you get an odometer verification? Does a mechanic shop bill with date and odom work?
Could you also get a tax reduction from a Roth IRA?
Where can I open a HSA
Can you deduct things if you pay in cash? If so, I'm guessing we need to keep the receipts or scan them.
I want to open an LLC through you guys
Are these for small businesses in general or specialty "online businesses "
Thank you for the detailed tips. I have a separate question.
Do an LLC pay taxes when it purchases supplies to build a product. For example, I need to buy components to build a robot do I have to pay sale taxes when I buy the parts? I'm asking because restaurants dont pay taxes when they purchase groceries.
Thank you,
Thats because food itself is exempt from taxes. Most things outside of food has a sales tax. Any person or business entity (llc, c corp, etc) has to pay taxes when buying supplies.
Thanks for the tips!
Just subscribed.
& Can one write off training courses/ books for the business?
Yes!