Your video are way easier to understand than other videos and people I have seen on UA-cam. You’re a great teacher to teach us and for us to understand. You’re great, I’m recommending your videos to many others!
You guys are amazing! I am a CPA who has an unrelated small business. You do an amazing job of giving accurate information in an entertaining, easy to follow format. I will recommend your videos to other small business owners.
Crystal clear video, just what I was looking for as a freelancer trying to figure out all my business expenses. I thought I had to save out every single receipt to present to my CPA and to the IRS! Now I know, thanks! 🙏
At the start of this year, I started keeping all of my receipts because I felt like it would make me more cognizant of my spending. I ordered a receipt holder/organizer from Amazon for $10. Each quarter, I plan to enter the expenses via a spreadsheet. So far, my most significant expenses are food and gas. Love your channel btw-- great content!
food?unless you are a rstaurant.how do you take off food? l would take mileage ,not gas,oil,depreciation,ect......mileage is in the easy way 56 cents a mile!!!
Would you recommend documenting all expenses under a single(debit) if you do not have a credit card available....i personally had a platinum cash app card sent to me and all expenses that i believe will be tied to my sole prop are only processed through that. Tips, receipts(take a picture), gas, snacks or a meal during launch time(break from working), cleaning supplies, accomodations for customers/riders, every time i cashout through the apps its tied to that one card or account( i try to limit the cashouts per week as much as is possible so it can remain organized for my adhd brains(this way it is more visibly seen if a bank needs my documentation and aren't confused in the process), im even going to include insurance and maintenance of my vehicle soon also my phone bill(i use 2 phones, both for business). All these are steps im taking to prep myself for filing an LLC before the end of the first quarter of this year. it's already the 3rd month
Thanks a lot for the helpful information! Your channel is amazing! I'm so worried about getting audited because I travel full time for UA-cam and have so many expenses for flight and hotels it almost sounds unbelievable 😭😭😭
I am using an Excel spreadsheet to log my receipts. I'm getting a big overwhelmed, mostly because the items on the receipts go into separate budget categories.
hey, I have a question. How do I go about writing off purchases for equipment and products bought before the business was formed? As well as with a personal debit/credit card instead of business debit/credit card?
Elmer, they are startup costs. GAAP rule says expense immediately if they have no long-term benefit. IRS says if over $50k, expense $5k and amortize the $45k over 180 months.
Nope I kinda suck at it I'm using my notebook to keep up with my spending and I have my parent do my taxes online it's so much better than the paper way
I write my receipt in a ledger,write a title/summary in bold on receipt, take photo of receipt, put receipt in folder. At end of year I type it into excel and compare it to bank statement, then write summary for tax office. I gather receipts from stores, businesses, banks, utilities, etc. I think I'm overdoing this. I had to drop that business and am trying to start a different business with o income for months and extreme startup purchases
I have a business bank account now, but at the beginning of This year I use my personal account now as a sole proprietor am I able to Write off my business meal receipts From before I open my business account?
I use rocket money! It's way better than quickbooks (I do my own bookkeeping). It takes a second to set up "rules" like quick books, but after that, it really does make bookkeeping so easy and it also has really helpful things like tracking savings, investments, subscriptions (it's helped me catch double charging subscriptions twice as a business owner), and even tracks upcoming biz bills. you can connect it to your credit cards and bank accounts, too, so when it's P&L time, it's really straightforward. I tried QB but I really hated how difficult and almost purposefully confusing to use
Hello I have a question. what if you used your personal credit card when you first started out? Buying a website and business plan and etc. will that still qualify for a accurate tax write off?!
Hello, I do bookkeeping for small businesses. Yes , those expenses also qualify but will need to be recorded as owner's contribution in your bookkeeping system.
I have a situation where I pay rent plus the tax for the building every 6 months. Am I able to write off the tax off the building even though I’m not the owner of the building?
@@LYFEAccounting No, its my etsy shop. I just buy things and keep all the receipts to match against my DBA checking account. I have registered as a small entity business with my county. I have not "paid" myself yet, just bought upgrades to the shop. Well, my wife and I go on business lunches once a week to discuss things related to the business of course.
I do bookkeeping for small businesses. Those expenses are considered start up cost and will need to be recorded as owner's contribution in your bookkeeping system. You can deduct your start up costs up to an amount
How would an "accountable plan for reimbursements" fit into this? I heard that it was something needed to be able to make certain types of expense claims affecting profits. Thanks!
Sean, Great video! Quick question: I vend at two annual trade shows. At both, vendors are requested to donate product for show events, like silent auctions, raffles, etc. I've never been given a receipt for my donations but I know what they were. Do you think reporting the amounts would trigger an audit? The amounts are negligible (avg. $80 per show).
if it only 2 shows,FORGET IT!thats like pennys!why take a chance?!I DONT TAKE OFFICE USE IN MY HOME EVEN....its a small deducction and will be RECAAPTURED AND TAXABLE when you sell!
I got a extension on my taxes I'm just now getting ready to file. The Next tax season coming up I will like to see if you guys have a spot available for me to become your tax client. Thank you I will appreciate that
Great videos Always. I am needing some assistance/services with my taxes.. do you have any availability?? I have an in home bakery/llc and haven’t filed…At all yet
Thought Zelle was bank to bank transfer so excluded from the 1099-k can you show us where you determined that zelle is included. Overall very educational always love y’all content!
Hi Sean, I am a newbie virtual Bookkeeper and I am working on bank feeds in QBO or manual input of expenses using the bank statements. So my task is to categorize the expenses. Since bank statements only indicates the name of the vendor where the clients made the purchases like Amazon, ebay, etc., there is no details as to the items being purchased and the amount per line item in the bank statement is already the total amount purchased. Do I need to dig deeper as to what items they bought? Or I'll just categorize them by searching the vendor name and see what Items they usually sell? Thank you!
If the client has a large number of transactions taking place on general online marketplaces then we ask clients to share their login info, so we can properly categorize
Most statements are not descriptive enough without a receipt or invoice so on their own wont hold up as a source document to substantiate the expense under audit.
@@mtigress4589 Valid point for paper statements. However, most accounts have an App that will give you access to details of your purchases and the option to view your receipt. Some also allow you to categorize and edit descriptions. So, I guess a better description would be to maintain an electronic statement of purchases.
@@MsRaye-23 true true. Ugh, it's just a nightmare on the auditing side because you can only allow so much without seeing details and not everyone is keeping a good record and don't know how to prove the items later.
HOW ABOUT WE STOP GIVING VALIDATION TO THE IRS AND FORCE OUT GVERNMENT TO MAKE TAXATION LESS COMPLICATED,WHY DO WE NEED TO LEARN THIS SH8 AS ADULTS ,THIS IS MADNESS ,WE NEED TO FORCE A NEW CULTURE ..
@@marvelouss719 Exactly and they come to me all the time with the I seen on tik tok that I will get the money for my car or something that I have to end up explain to them all the time... it's insane
![15 Individual Tax Strategies to Avoid W2 Taxes [100% Legal]](http://i.ytimg.com/vi/nIxn2HqUffI/mqdefault.jpg)
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](/img/n.gif)
This guy makes learning about taxes interesting, thank you 🤝
Your video are way easier to understand than other videos and people I have seen on UA-cam. You’re a great teacher to teach us and for us to understand. You’re great, I’m recommending your videos to many others!
You guys are amazing! I am a CPA who has an unrelated small business. You do an amazing job of giving accurate information in an entertaining, easy to follow format. I will recommend your videos to other small business owners.
Crystal clear video, just what I was looking for as a freelancer trying to figure out all my business expenses. I thought I had to save out every single receipt to present to my CPA and to the IRS! Now I know, thanks! 🙏
Thanks for the tips very helpful
At the start of this year, I started keeping all of my receipts because I felt like it would make me more cognizant of my spending. I ordered a receipt holder/organizer from Amazon for $10. Each quarter, I plan to enter the expenses via a spreadsheet. So far, my most significant expenses are food and gas.
Love your channel btw-- great content!
food?unless you are a rstaurant.how do you take off food? l would take mileage ,not gas,oil,depreciation,ect......mileage is in the easy way 56 cents a mile!!!
Would you recommend documenting all expenses under a single(debit) if you do not have a credit card available....i personally had a platinum cash app card sent to me and all expenses that i believe will be tied to my sole prop are only processed through that. Tips, receipts(take a picture), gas, snacks or a meal during launch time(break from working), cleaning supplies, accomodations for customers/riders, every time i cashout through the apps its tied to that one card or account( i try to limit the cashouts per week as much as is possible so it can remain organized for my adhd brains(this way it is more visibly seen if a bank needs my documentation and aren't confused in the process), im even going to include insurance and maintenance of my vehicle soon also my phone bill(i use 2 phones, both for business). All these are steps im taking to prep myself for filing an LLC before the end of the first quarter of this year. it's already the 3rd month
I keep my receipts using Receipt Hog. Im using this video for learning! Thanks …
Best tax advice on YT!
Thanks for the positive reinforcement and the comment for YT algorithm!
Excellent video. I appreciate you really breaking it down.
Thanks for watching, Malcom! I hope it serves you well 🤞🏽
Thanks a lot for the helpful information! Your channel is amazing! I'm so worried about getting audited because I travel full time for UA-cam and have so many expenses for flight and hotels it almost sounds unbelievable 😭😭😭
I am using an Excel spreadsheet to log my receipts. I'm getting a big overwhelmed, mostly because the items on the receipts go into separate budget categories.
hey, I have a question. How do I go about writing off purchases for equipment and products bought before the business was formed? As well as with a personal debit/credit card instead of business debit/credit card?
Elmer, they are startup costs. GAAP rule says expense immediately if they have no long-term benefit. IRS says if over $50k, expense $5k and amortize the $45k over 180 months.
Best BUSINESS YT Channel!!
Wow thanks, Brittney! What kind of business do you have?
@@LYFEAccounting I have a notary business and vending machine business. I’d love if you could talk about notary tax deductions?
Definitely stressing about my lack of organization around bookkeeping and receipts. Anyone else with me? Cause I’m feeling alone
To be honest I suck at 2
Nope I kinda suck at it I'm using my notebook to keep up with my spending and I have my parent do my taxes online it's so much better than the paper way
@@morgandragicevich6880😅😅😅😅😅😅😅😅ppl😅😅😅😊😅ppppp
100% first year selling on eBay and im at 9k total right now with 0 receipts
😧
Turbo Tax didn’t ask me for any receipts. Will the irs ask me later? I saved receipts but TT didn’t ask for them.
I write my receipt in a ledger,write a title/summary in bold on receipt, take photo of receipt, put receipt in folder. At end of year I type it into excel and compare it to bank statement, then write summary for tax office. I gather receipts from stores, businesses, banks, utilities, etc. I think I'm overdoing this. I had to drop that business and am trying to start a different business with o income for months and extreme startup purchases
Excellent video! Going to watch more of your videos.
I’m so happy that I now will only have to save my cash receipts 🥳
I have a business bank account now, but at the beginning of This year I use my personal account now as a sole proprietor am I able to Write off my business meal receipts From before I open my business account?
Great video, I have a question? When working for your own business and then having a W2 from doing so, are you allowed to do some write off with that?
The short answer is: You can only write off things that pertains to your business-- not for the W2 portion.
@@chrispierce1305 facts
I use rocket money! It's way better than quickbooks (I do my own bookkeeping). It takes a second to set up "rules" like quick books, but after that, it really does make bookkeeping so easy and it also has really helpful things like tracking savings, investments, subscriptions (it's helped me catch double charging subscriptions twice as a business owner), and even tracks upcoming biz bills. you can connect it to your credit cards and bank accounts, too, so when it's P&L time, it's really straightforward. I tried QB but I really hated how difficult and almost purposefully confusing to use
10/10 video. Really appreciate you breaking it down!
Where do you document the business need, purpose, intent, for the transaction? On a word document, lol
Thank you for sharing this information Sean.
This is a great video .Thanks. I just subbed.
Thanks for the sub!
Great video and definitely necessary
Glad you think so! thanks for commenting for the youtube algorithm
Hello I have a question. what if you used your personal credit card when you first started out? Buying a website and business plan and etc. will that still qualify for a accurate tax write off?!
Hello, I do bookkeeping for small businesses. Yes , those expenses also qualify but will need to be recorded as owner's contribution in your bookkeeping system.
This came right on time for me. 👌🏾
So glad! Why though?
@@LYFEAccounting to know if I did my bookkeeping correctly since I just sent it to my tax preparer
I have a situation where I pay rent plus the tax for the building every 6 months. Am I able to write off the tax off the building even though I’m not the owner of the building?
When we started our business we used personal credit cards to make purchases can that be written off as well
I have a folder that I toss my receipts in. It is bulging at the seams. Maybe Ill sort it next week...
Do you have a lot of cash transactions?
@@LYFEAccounting No, its my etsy shop. I just buy things and keep all the receipts to match against my DBA checking account. I have registered as a small entity business with my county. I have not "paid" myself yet, just bought upgrades to the shop. Well, my wife and I go on business lunches once a week to discuss things related to the business of course.
what about if I needed to purchase things out of my personal account before my business was established and had revenue to do its own expenses?
I do bookkeeping for small businesses. Those expenses are considered start up cost and will need to be recorded as owner's contribution in your bookkeeping system. You can deduct your start up costs up to an amount
as a new flight instructor, can i write off food/coffee for when I take my students to study somewhere?
How would an "accountable plan for reimbursements" fit into this? I heard that it was something needed to be able to make certain types of expense claims affecting profits. Thanks!
Sean, Great video! Quick question: I vend at two annual trade shows. At both, vendors are requested to donate product for show events, like silent auctions, raffles, etc. I've never been given a receipt for my donations but I know what they were. Do you think reporting the amounts would trigger an audit? The amounts are negligible (avg. $80 per show).
if it only 2 shows,FORGET IT!thats like pennys!why take a chance?!I DONT TAKE OFFICE USE IN MY HOME EVEN....its a small deducction and will be RECAAPTURED AND TAXABLE when you sell!
I got a extension on my taxes I'm just now getting ready to file. The Next tax season coming up I will like to see if you guys have a spot available for me to become your tax client. Thank you I will appreciate that
To answer your question before video really starts, I keep receipts by putting them on a pouch😭 have a feeling I’m doing it wrong lol
Thank you!!! Really needed this info!!
Great info!!!
Thank you for this information 🙏🏽
Cheer~~~provide evidence to support or prove the truth of.😊
What happens if your business only makes less than $1000.00 a year. Im a small business llc owner, no employees.
What is the best app to capture receipts? Any suggestion?
as a doordasher are my meals a tax write off?
Thank you!!!!
The receipt thing always confused me. First off my business has around 100 expense transactions a week. So yeah over 5000 transactions a year. So,
Do you have suggestions on if/how to document Venmo or other cash app payments from clients?
The payment processors are starting to send 1099Ks, but you should also try using a software like Quickbooks to sync venmo and cash app
Great videos Always. I am needing some assistance/services with my taxes.. do you have any availability?? I have an in home bakery/llc and haven’t filed…At all yet
Hey Jennifer, thanks! You can book an appointment with us at lyfetaxes.com
Thank you 🙏🏾
Thanks for watching! How do you currently keep up with your receipts?
I use Xero I’m not the biggest fan, but it’s not bad
v helpful video thanks
Thought Zelle was bank to bank transfer so excluded from the 1099-k can you show us where you determined that zelle is included. Overall very educational always love y’all content!
Well personal zelle is what I meant I know business zelle is available and should expect to receive 1099-k
I believe they will be tracking any zelle transaction that are over $600
@@LYFEAccounting That is correct as of January 2022.
Hi Sean, I am a newbie virtual Bookkeeper and I am working on bank feeds in QBO or manual input of expenses using the bank statements. So my task is to categorize the expenses. Since bank statements only indicates the name of the vendor where the clients made the purchases like Amazon, ebay, etc., there is no details as to the items being purchased and the amount per line item in the bank statement is already the total amount purchased. Do I need to dig deeper as to what items they bought? Or I'll just categorize them by searching the vendor name and see what Items they usually sell? Thank you!
If the client has a large number of transactions taking place on general online marketplaces then we ask clients to share their login info, so we can properly categorize
No keeping with all my receipts😏
Yup. File folders by month. Lol
I advise my clients to Use a debit or credit card for their purchases and your statement is now your “receipt”. Don’t send me all those receipts!
Most statements are not descriptive enough without a receipt or invoice so on their own wont hold up as a source document to substantiate the expense under audit.
@@mtigress4589 Valid point for paper statements. However, most accounts have an App that will give you access to details of your purchases and the option to view your receipt. Some also allow you to categorize and edit descriptions. So, I guess a better description would be to maintain an electronic statement of purchases.
@@MsRaye-23 true true. Ugh, it's just a nightmare on the auditing side because you can only allow so much without seeing details and not everyone is keeping a good record and don't know how to prove the items later.
HOW ABOUT WE STOP GIVING VALIDATION TO THE IRS AND FORCE OUT GVERNMENT TO MAKE TAXATION LESS COMPLICATED,WHY DO WE NEED TO LEARN THIS SH8 AS ADULTS ,THIS IS MADNESS ,WE NEED TO FORCE A NEW CULTURE ..
Thanks to the false information givers on tik tok lol...
Building Wealth* Only an idiot would seriously take anything about IRS or financial from TikTok.
@@marvelouss719 Exactly and they come to me all the time with the I seen on tik tok that I will get the money for my car or something that I have to end up explain to them all the time... it's insane
Thank you !!!!😊