Super Happy I found this Channel1!! You literally explained it with grace and in simple terms! I appreciate you. My anxiety level went from 100% to 1%! Yay! Thank you, thank you!
Man, your videos and your information is awesome and appreciated. Can you explain this scenario for S-Corp? If you take a deduction of 18K/Year under a corporation, but on personal tax return it's 18K in rental income, so how is this really a tax write-off/deduction? Because it seems to me that at the end, S-Corp does NOT pay taxes, but the K1 personal statement pays for it. Is there a way to get by this? THANKS in advance.
Great video! Thanks, your content is helping me a lot. The working in your garage and making products in your home kitchen examples actually wouldn’t qualify though right b/c they’re not exclusive to the business (assuming you use your garage for parking a car and a kitchen for cooking food)? Thx again!
Isn’t it on the simple a maximum of 300 ft.² times five dollars is $1500 per month that the Business has been using the Square feet henceforth that would be $18,000 at the end of the year that could be written off on the simple method
Your example of calculating the home office deduction according to the square footage percentage was confusing.This one and previous videos stated for homeowners: only certain components of the mortgage payment can be deducted (mortgage interest, property tax (included or outside of mortgage payments), etc. --the entire mortgage payment can not be deducted. I understand that monthly rent payments can, but you gave the example of monthly rent/mortgage payments which I believe is incorrect. Although, I think it was a mistake/oversight, this is misleading. Could you please make that correction on this video if it is applicable? If I am mistaken, I apologize! Thanks!
If I just entered the whole amount of rent, which is $1,200 per month plus give the square footage of a room, will the tax preparer do all those other calculations for me
This will be my 1st year claiming the Home office deduction. My question is how do I actually get it applied to my annual tax filing? Is there a certain form to fill out and take to my filing appointment or can I just verbally walk through it with the tax representative? Thanks.
I'm a full-time w-2 employee and I just opened LLC which is not related to my w-2 job. I have a designated area in my apartment and it's being used exclusively for the administrative and all other business purposes of my LLC. Can this home office qualify for tax deduction?
Hey quick question. So I’m filing my taxes through turbo tax and if I use the same office space for 3 separate businesses, do I claim the entire office space for one business, divide that space into the three businesses or can I claim that entire office space for all three businesses? Thanks in advance!
Thanks a lot for the well thought out vids. My question is, how do you determine when should try to utilize this deduction?? I am a new Homeowner and have allotted my whole lower half for my studio. I’ve bought some expensive equipment as well and I’m trying to find out if it would be worth me filing as a sole prop? I’ve made no income, just money going out. It would be great to get a little back for what I’ve spent but I can’t get any CPA’s to answer these basic questions where I’m at!!?
You could've purchased all that gear under an LLC and you wouldve gotten a tax break. Did you do that with your regular taxes? Create an LLC anyway and if you keep buying gear, use your business card to pay it.
@@NanoverseProductions thanks for your reply. Learned a lot since I posted this and have secured my LLC as well as a business card. 💫 Next feat is going to be filing taxes for the purchases I’ve made. I’m hoping to get something back off of these expenses and not end up owing!
If you have a home office but then sell your home after living in after 2 years, does the home office deduction affect the capital gains tax deduction?
Sorry, to clarify, your entire mortgage payment is deductible by the percentage of your home office space? In the beginning of the video it says mortgage interest, so is it the entire mortgage payment or just mortgage interest?
What if you are a virtual employee not self employed but you are buying office furniture, fixing broken office window. Are those depreciated assets? Where can we enter those?
Good explanation. But that calculation is wrong though at 7:54. 30,000.00x33 gives you 990,000.00. Did you mean 33% of 30000? You should clarify. Thanks.
Where do you write off job searches? I am confused because I don't see one person on UA-cam selling advice on doing a 2106 related to job searches in the same field .
Don’t we already write off mortgage interest? How would that reconcile with this? Are all insurances and expenses on the home part of the deduction calculation?
You made an example of a 3000sqft home (living built area I assume)...What what if the whole lot is $8000 sqft and I use alll the back yard for business purposes? ...What if I DONT use the open space or back yard to work, then the calculation wouldn't be based on 3000 sqft but 8000 sqft and the deduction would be a lot less in your example?....In conclusion does IRS consider the whole lot or just the built area?
In addition to the mortgage insurance, HOA, utilities, etc, would the office improvements like ceiling fan installation and flooring be a deductible expense?
7:09 You said "rent or mortgage payments" can be deducted. I am looking at the instructions for form 8829, and I dont see that mortgage payment can be deducted? Can you show me where they can or was that a mistake in the video?
For the home office deduction, I can't find anywhere talking about if you can still qualify for the home office deduction if you either live with relatives (but really work from home), or if it matters if you are really paying rent to those same relatives? Can you claim this home office deduction if you aren't really paying rent (but are really working from home.)
If W2 income and started LLC. will I be able to deduct home office expenses for a business that makes $0, meaning it will eventually deduct the taxable income from W2 income as there was no income from LLC?
I can still take the deduction if I started my business in November, right? Instead of a year's worth of expenses, I'm thinking I'd just count the expenses for those 2 months? Please confirm whether this is ok. Thanks!
If we have a home office and we also rent out a portion of our single family home, then can we deduct the 7 deductions (video: 2.48) in proportion , for both these separately from our income? Pls advise?
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
Super Happy I found this Channel1!! You literally explained it with grace and in simple terms! I appreciate you. My anxiety level went from 100% to 1%! Yay! Thank you, thank you!
Happy I found your channel, no need to look elsewhere for Tax/accounting info. Looking forward to doing business one day.
Welcome aboard!
I LOVE your channel. You guys explain things so CLEARLY - and that takes TALENT! Thank you!!
Wow that means a lot thank you!!
I agree
Very thorough explanation of this awesome small biz owner benefit...Great job!
You rock! Thanks for leaving your feedback 😃
Can you be a W2 employee AND self employed to qualify?
Yep, after you add your w2s you can add your self employment which is where you’d put those deductions
@@kiokosalaam8059we can add it with a schedule C?
Can I use a vacant mobile home as a office and shop, and deduct the rent and utilities?
This helped me a lot! Thank you. Happy New Year!!
Amazing video! You made it so easy to understand...ty sooo much!!
What an excellent video. Really well done. Thank you. 👏🏻
I am both an employee and starting my own home business
Great, good luck!
Dang this is good. Smart and clear. Rare and appreciated. Thank you.
Thank you. Well explained. I appreciate you.
This is exactly what I was looking for
Very helpful. Did you make the video home depreciation as it related to home office deduction
Wondering the same thing, can't seem to find it.
Man, your videos and your information is awesome and appreciated. Can you explain this scenario for S-Corp? If you take a deduction of 18K/Year under a corporation, but on personal tax return it's 18K in rental income, so how is this really a tax write-off/deduction? Because it seems to me that at the end, S-Corp does NOT pay taxes, but the K1 personal statement pays for it. Is there a way to get by this? THANKS in advance.
So you gonna make me watch the whole video...good one ...Im in!
💯💯
Great Video! Keep up the good work
Great information 👍🏾 very understandable 👍🏾
How about if I am an employee and a business owner working from home...would your video explanation applies as well?
Clear presentation, thank you.
Great info! Thanks so much for the video
Great video! Thanks, your content is helping me a lot. The working in your garage and making products in your home kitchen examples actually wouldn’t qualify though right b/c they’re not exclusive to the business (assuming you use your garage for parking a car and a kitchen for cooking food)? Thx again!
So can I use my business checking to pay my mortgage? I use my home for my business.
Thank you.
Isn’t it on the simple a maximum of 300 ft.² times five dollars is $1500 per month that the Business has been using the Square feet henceforth that would be $18,000 at the end of the year that could be written off on the simple method
your info is great thank you
Glad it was helpful!
Excellent video, thank you
Your example of calculating the home office deduction according to the square footage percentage was confusing.This one and previous videos stated for homeowners: only certain components of the mortgage payment can be deducted (mortgage interest, property tax (included or outside of mortgage payments), etc. --the entire mortgage payment can not be deducted. I understand that monthly rent payments can, but you gave the example of monthly rent/mortgage payments which I believe is incorrect. Although, I think it was a mistake/oversight, this is misleading. Could you please make that correction on this video if it is applicable? If I am mistaken, I apologize! Thanks!
terrific info!
As business owners you also get paid W-2 so make sure to mention that .
To be fair, not all business owners receive a W-2.
I love this thank you for the information
Glad it was helpful!
Great video!!
Thanks for watching!
What if u are an employee but also do a side gig and reason a 1099 form?
Thank you!
If I just entered the whole amount of rent, which is $1,200 per month plus give the square footage of a room, will the tax preparer do all those other calculations for me
thank you so much great video!
This is going to bring huge savings during tax time, free $$$
💯
This will be my 1st year claiming the Home office deduction. My question is how do I actually get it applied to my annual tax filing? Is there a certain form to fill out and take to my filing appointment or can I just verbally walk through it with the tax representative? Thanks.
Great videos.
But wait I’m a little lost.
$30,000 x 33 = $10,000? (7:52)
I must have missed something.
My calculator tells me 990,000
What if your home land is 1000 sq ft covered home 300sq ft & office 100sq ft?
So do I just write myself a check once a month from the business account for the percentage of space I use?
What happends when u sell your house do u pay taxes
I'm a full-time w-2 employee and I just opened LLC which is not related to my w-2 job. I have a designated area in my apartment and it's being used exclusively for the administrative and all other business purposes of my LLC. Can this home office qualify for tax deduction?
Hey quick question. So I’m filing my taxes through turbo tax and if I use the same office space for 3 separate businesses, do I claim the entire office space for one business, divide that space into the three businesses or can I claim that entire office space for all three businesses?
Thanks in advance!
amazing question
Thanks a lot for the well thought out vids.
My question is, how do you determine when should try to utilize this deduction?? I am a new Homeowner and have allotted my whole lower half for my studio. I’ve bought some expensive equipment as well and I’m trying to find out if it would be worth me filing as a sole prop? I’ve made no income, just money going out. It would be great to get a little back for what I’ve spent but I can’t get any CPA’s to answer these basic questions where I’m at!!?
You could've purchased all that gear under an LLC and you wouldve gotten a tax break. Did you do that with your regular taxes? Create an LLC anyway and if you keep buying gear, use your business card to pay it.
@@NanoverseProductions thanks for your reply. Learned a lot since I posted this and have secured my LLC as well as a business card. 💫
Next feat is going to be filing taxes for the purchases I’ve made. I’m hoping to get something back off of these expenses and not end up owing!
If you have a home office but then sell your home after living in after 2 years, does the home office deduction affect the capital gains tax deduction?
Why isn't the math at the mathing for me lol
Yoooo in a minute… the irs will owe me money 💰 💎
Where do you put this deduction
I'm so glad I found this account! you guys should hop on tiktok for the younger folks
Is this up to date? My accountant told me I have to see how much office rent it going in the area
Does this make sense as a home owner, I hear it gets taken off as profit when you try to sell the house
Sorry, to clarify, your entire mortgage payment is deductible by the percentage of your home office space? In the beginning of the video it says mortgage interest, so is it the entire mortgage payment or just mortgage interest?
this was very helpful, am i able to also deduct internet and electricity the same way?
What if you are a virtual employee not self employed but you are buying office furniture, fixing broken office window. Are those depreciated assets? Where can we enter those?
The mortgage of $2k per your example is just the mortgage interest right? does not include the principal?
Good explanation. But that calculation is wrong though at 7:54. 30,000.00x33 gives you 990,000.00. Did you mean 33% of 30000? You should clarify. Thanks.
He meant .33
If in my home my spouse has a office and we already to a deduction for that, can I start another bsuoness in my basement and write that off to?
Where do you write off job searches? I am confused because I don't see one person on UA-cam selling advice on doing a 2106 related to job searches in the same field .
I currently rent my townhome can I claim my home office on taxed as a 1099
Don’t we already write off mortgage interest? How would that reconcile with this?
Are all insurances and expenses on the home part of the deduction calculation?
Thank you very much for the video. I have a question: How can I do that we a partnership LLC? Thank you in advance.
Can I deduct home office expenses if I have my own business, have a home office and receive a W2 from my employer?
what if your deduction is more than the amount I make. By the way, I just subscribed. keep it going.
Besides the rent, mortgage interest, & utilities, what are some of the things that would be included the “much more” category for deductions? 8:40
Example: is the $5 per sqft 10"x10" office =500 a monthly or annually?
It’s an annual deduction on your return.
How do you detach the utilities and transportation are you at home business
You made an example of a 3000sqft home (living built area I assume)...What what if the whole lot is $8000 sqft and I use alll the back yard for business purposes? ...What if I DONT use the open space or back yard to work, then the calculation wouldn't be based on 3000 sqft but 8000 sqft and the deduction would be a lot less in your example?....In conclusion does IRS consider the whole lot or just the built area?
In addition to the mortgage insurance, HOA, utilities, etc, would the office improvements like ceiling fan installation and flooring be a deductible expense?
I wouldn’t call it improvements, I would call it repairs/maintenance so in that case, yes! 😂
I’m an affiliate for a beauty business …. How does this work ?
Thanks 😁
Does this include a sole proprietor with a home based business?
7:09 You said "rent or mortgage payments" can be deducted. I am looking at the instructions for form 8829, and I dont see that mortgage payment can be deducted? Can you show me where they can or was that a mistake in the video?
For the home office deduction, I can't find anywhere talking about if you can still qualify for the home office deduction if you either live with relatives (but really work from home), or if it matters if you are really paying rent to those same relatives?
Can you claim this home office deduction if you aren't really paying rent (but are really working from home.)
mortgage interest or mortgage (Principle + interest)???
Can you use your converted garage into studio and apply this?
What if you are both I get W2 but I also run a business separate from my job? Does that just screw me out of it?
If W2 income and started LLC. will I be able to deduct home office expenses for a business that makes $0, meaning it will eventually deduct the taxable income from W2 income as there was no income from LLC?
What if you have w2 wages AND own rental real estate? Can I deduct my home office then?
Could I use this deduction on a 2 Bedroom Apartment ? Where the second bedroom would be completely for a Home Office?
I can still take the deduction if I started my business in November, right? Instead of a year's worth of expenses, I'm thinking I'd just count the expenses for those 2 months? Please confirm whether this is ok. Thanks!
Thank you. That was thorough and clear!
great info, but I wish you went line by line through form 8829 since there seems to be a lot more info needed and not discussed.
I do UA-cam from home & operate a music studio at home. Can I use that ?
If we have a home office and we also rent out a portion of our single family home, then can we deduct the 7 deductions (video: 2.48) in proportion , for both these separately from our income? Pls advise?
Good
Dave Chapelle giving tax advice. This should be good.
HOA for a house or condo you live in can be added?
30,000 times 33%= $9,900 not $10,000
What if you own a buisness and use your home as your office and you also work a regular job with a w2
I really wish you guys were taking new clients.
What if you use your detached garage to run a side business workshop and it’s not included in the square footage of your home?
Is the detached garage on your land?
@@LYFEAccounting Yes it is. It is powered from my house and shares internet services with my home also.
@@kissmyassngotohell it technically is still your home. take the full sq ft
@@LYFEAccounting Thank You
@@kissmyassngotohell hit that mans cash app he gave you a gem lol
Are you in Florida?
can you write off home office deduction when you are living with your parents and renting the 2nd floor of the house?
I don't know all the details, but I am 99% sure you can
Can you get these deductions if you use a virtual office?
I rent an apartment with a home office that I use exclusively for work-from-hom. can I deduct this?
do you work on a business in your home office?
Hahaa! TC is the man.
How would this work if my home was open concept
Can you do this as a W2 employee that works exclusively remotely?
No.
If a person make income from stock/options trading...
What would be the most efficient way to write off some of the income for taxes ?
You’ve got to pay taxes on gains but take advantage of tax loss harvesting when you can.