6000 pounds is Gross Vehicle Weight, that means Curb weight plus payload capacity. so a heavy SUV with 5000 curb weight that can carry another 1000 pounds qualifies for section 179
hey guys pat here from hostons home automation llc .i just wanted to thank you guys again . after watching this and the credit video , i was able to get a 2020 chrysker pacifica s seats 7 or stores 8 ft of cargo . it gets 80 mpg and qualifies for the setion 179 deduction . perfect for lyft , odd jobs chaffeauring etc . it shpuld make me 700 k in 5 years if verything plays out right
When it comes to Section 179, there is a $25,000 depreciation cap for all other “heavy” vehicles like the G-Wagon mentioned. To take the full accelerated depreciation you must have a vehicle that is described as a passenger van, utility truck or utility van. Suggested Video to Watch Next: 8 Cars You Can Get TAX FREE - ua-cam.com/video/1NKfdORdeDk/v-deo.html&t
So here is my question. I heard that you can file section 179 for Tesla model Xs because of their extreme weight (meet Kevin is the person I’m referring to right now). Could I still file section 179 for a used 50k model x or would that only be applicable for new model Xs? I’m pretty similar to the model you gave where I drive 30k miles on average for work and a used model x is within the budget, as well as a cool choice for its lower monthly running costs. I cannot yet comfortably buy a new model x as a business vehicle yet.
@@ziolan8970 you can utilize 179 for used vehicles. But they have to be purchased or financed. No leases. And you need to utilize a corp or llc. You can’t have it in your personal name. Is a model x over 6,000 GVWR?
@@bebin73 oh, so it doesn't work with dba's? So just to be clear, the vehicle has to be put in the name of the business and you can only use an LLC or corp...correct?
@@GoaWay... but if you have a DBA then you already (should) have a Corporation or business. For example, business owner John Smith might file the Doing Business As name "Smith Roofing." Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business. For example, Helen's Food Service Inc. might register the DBA "Helen's Catering." The biggest difference between a DBA and an LLC is liability protection and tax benefits. Under a DBA, there is no distinction between the business owner and the business. ... On the other hand, an LLC provides limited liability protection. The business owners' personal property remains completely separate from the business.
This is not entirely correct and a bit misleading. In your example, you mentioned that the company had 150,000 in taxes payable. Using a section 179 deduction, if a business use vehicle costs 150,000, that amount does not get deducted from your taxes payable of 150,000 but rather from income. The correct way to phrase it is if you buy a 150,000 business use vehicle, you multiply the cost by your marginal tax rate, say you are in the 24% bracket. That’s 150,000 x .24 = 36,000. You have saved 36,000 from your taxes payable of 150,000. That’s if the car gets 100% business use, if 50% business, then it’s (150,000 x .24).5 = 18,000. You will only get a deduction of 18,000 from your 150k payable.
If anyone needs business decals for their car in California lmk, I’m a vinyl wrapper and we can print out anything you need and the wrap is also removable so you can protect your precious paint as well 😇
Dude i was so f**kin frustrated about being stuck in my lease now you've given me the greatest loophole ever. Seriously bro thank you so much. Can't beleive I'm just findingthis out. Omg thank you.
In Virginia, if you claim a vehicle as business your personal property taxes go way up--thousands for an expensive vehicle. The tax offset may still be beneficial, but be aware of how localities try to bite back.
Be careful with this guy's advice. He's failing to mention that Section 179 is still limited by the higher Section 162 that says expenses need to be ordinary and necessary. Try explaining during an audit that you NEEDED a g wagon for cakes.
@@BeshEntertainment That's not true. These personalities make it seem like it's that simple but it's not. They play the odds of the return coming under audit.
@@Kay.D to that point it would be asked how often is it being driven just to advertise. How big is the company info on the car. Who drives it for hours without mixing with personal errands at the same time. My problem with this video is they are trying to sell the idea of writing off your dream car for business but most ppl would like to drive their dream car recreationally. Ppl popped for audit aren't going to be able to get out of a huge bill saying a video gave me this advice.
Taking my business serious this late in 2021 and from this point on, this was a perfect recommendation from UA-cam as I’m a mobile diesel mechanic 👨🏽🔧
2022 Freightliner M2 Business Class Extended Cab RollBack with a 21ft Miller Chassis! (Don’t know if Tow Trucks qualify but I’m putting it in the Universe) Cheers!
Found you guys the other day and i'm learning so much, thank you for uploading these great videos! Even though i'm Canadian and looking for Canadian tax information, this was very informative. Wish there was a Canadian channel like this!
Keep doing what you doing my brother. Trying to jump my business off from scratch and I had a lot of questions about buying my vehicle and you put me on point thank you keep up the good works!.One Love!❤🙏😃
Listen, I subscribe to a lot of informative business channels and you by far explain the process, the follow thru, and the end game better than any one of them. Thank you for taking the time to do this for all of us small business owners. You make a dream become reality.
I got a few questions my man I have a full time job. Pay traditional taxes. I started doing DoorDash on the side and I’ve been tracking my miles. 1) how can I prove to the IRS about my deliveries if I got audited ? I’ve been just logging the mileage 2) how would it affect my “traditional taxes” from my main job? Thank you in advance. I might buy a Lambo to door dash in 😎
For me actual expenses has exceeded standard deduction since 1978. The most deduction you can get is if your business can justify buying the car and it is for business use.
If you write off 100% of the vehicle using code 179 in 2022, are you still eligible to use the standard mileage rate deduction on that same car in subsequent years?
@@LYFEAccounting hey bro I’m starting up my business that being said if I want to get a call my business name immediately I know I will have to do a personal guarantee what I have to put something down? And what do you think the minimum score is for my personal credit 650?
One slight distinction I don’t get but seems important. You say several times that doing these things will allow you to get your dream car for free. But I don’t see how that is. If you are writing your car expenses off, that reduces your AGI / tax bracket which will lower your taxes. But it’s not like all these expenses disappear. You’re just paying a little less taxes. For example. Say I make 100k a year and so my effective tax rate is around 20%. Aka I’m paying 20 of that 100k in taxes. But now say I buy and expense a 20k car. So my AGI becomes 80k. My tax rate drops to say 15% or 15k. I saved 5k in taxes. My car cost 20k. So in the end it’s like my car cost 20-5= 15k
Thx my dream car is a Model 3, I want to use it when I retire to transport clients/patients to their Dr appt, and do UA-cam vlogs for people over 60 yrs old to learn about tech…I have so many questions…peace
I have a couple of questions, but first I wanted to thank you for taking the time to explain this. Question 1) does this applies if we purchase a used car and deduct it in 1 year one? Or the car has to be new? 2) can we purchase a second car on year 2? Thank you very much in advance and if you can DM me with your office info please.. thank you!!!
I believe the vehicle has to be new. I personally know some one with a business and they always get a vehicle new after they can’t get any more tax write offs they get rid of it and get a new one. Check with local state laws because laws are different state to state.
Great video. Thank you for providing concrete examples of exactly how to do this. I.e. write off one's car. My accountant doesn't even explain it this well !
Something he didnt mention. COMMUTING (To and from work) are not deductable. So your standard mileage expense might look smaller if you only track your miles for actual business
What if I work from home (my office). I drive to the post office 10 miles away (business mileage) but then 10 miles back to the office, do I count those 10 miles as well?
My dream car is jeep Cherokee trackhawk 2018 🤟🏽💯❤️🔥🙌🏽👍🏽🙏🏽 i cant wait im using business on that with grantz paid it off to get it out the dealership lot
If my LLC made $100,000 net profit, and I want to offset that with a Dodge Ram truck costing $50,000 (not clear if that is considered a "utility truck" or what defines that term). I can purchase one for cash, and deduct all $50,000? What is the 30-40% you mentioned?
I forgot about this…. And I needed a new large sedan car or even Sprinter van for business. We own a business and have several other cars and trucks as personal vehicles. Thanks.
What is the difference in writing off the “lease” but not the loan payment? Isn’t it essentially the same thing? Could you please elaborate this or direct me to another video if there is one explaining the difference in the two?
I would say a lease gains you nothing long term. It's basically renting a vehicle. When you are making payments, a large portion of the payment is building equity in the vehicle. I paid $600 truck payments for 4 1/2 years and sold the truck for all my money back. If those were lease payments, I would have gained nothing but the use during that time frame.
I have had 2 G550’s but never bought one new. I have a 2021 coming in late October and am going to use section 179 and accelerated depreciation. Did this with an F250 platinum for my property co this year.
@@Awakened_journeyz you don’t receive money back, you just have it negate that amount of tax liability. Meaning if you owe $30,000 in taxes and can deduct $20,000 through a vehicle, you’d only owe $10,000.
@@inter5123 you clearly don't get it.....this is why deductions exist! They write off and deduct so much that they end up owing little to nothing after they've raked in millions.
Your information on 6000 lb vehicle is partially incorrect, there are special clauses in there so you cant take the full deduction in one year on particular vehicles, nicknamed the "hummer" clause
Great content! I have a couple of questions if you don't mind? 1. What if you have a full-time job, but have an LLC for a side business that has two licensed owners, but one of those owners (me) uses their personal vehicle to make sales calls to try to earn business. Can I track mileage and wear/tear on my personal vehicle while making sales calls? 2. What impact would this have on my personal taxes if doing so, considering I also have a full-time job?
1. You can just track the business related miles as he showed in the video. If you want to track actual expenses you can use the miles method. 2. Yes it will have an impact. Typically in a positive way, but consult with your CPA who knows your personal situation.
I just want to clarify for any non-accountants: you will still pay for the car, the deductions in this video reduce taxable income, which depending on your tax rate can be as little as $0.15 on the dollar. So the car is not free. Although, with enough miles, you could in theory get the car for free eventually with enough tax deductions depending on how many miles/years and your tax rate. I never use actual expenses for clients because the standard mileage rate is almost always better.
You are exactly right! Which is why I recommend leasing a car or simply writing off miles or both. Section 179 is almost asking for an audit. And like you said taking the mileage deduction is much better in the long run. (Easier to defend as well).
@@ganilau4214 They do not have a cap, but if its like 40,000miles on one car than you may have to prove it if the IRS asks, but if you have 2-3 cars and you drove 60k miles in a year thats going to be really hard for them to prove that you don't so they will most likely do nothing at all. The rate for the miles deduction changes every year.
@@ganilau4214 Since im in the US you essentially get to tell the IRS to go fuck themselves if you know the law & have the tenacity to it. But the rate changes from 0.545 per mile one year to 0.58 in another. The IRS changes it every year so its "fair".
I feel like the part which is confusing me is how we as the consumer interact with the business. Like.. you're starting a business with zero funds. Can I just go out and spend 100k of my own money on a car under the business name? Also say I do that, the write offs are only for the business. So the only benefit is if the business is making money? Meaning if I paid for a call in full under the business name. I'm writing things off but if the business made no money is doesn't matter?
Hey guys just as a heads up..u can still “write this expense off” however it’s still on your balance sheet as a payable and guess what..u still owe and have to pay it. Yes I’m a CPA.
@@chuckychucknetwork9190 writing off just means you get to deduct as an expense from your income. The net of those two is net income “NI”. This NI flows into your 1040. This is the pass-through income. So yes it’s worth it to “write off”. But most folks think “write off” as something free. When in actuality you already paid the cash to buy the car or gotten the loan to finance the car. And if you did finance it, guess what..you still owe them the $$.
I work as full time job and I bought Kia telluride for $63000 and I’m using it 90% for. Uber .. how can I right off my whole car? I bought my car in cash
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Wow, I don't think I've ever heard anyone mention or bring up section 179. Dropping the real knowledge on this channel!
Not holding anything back!!
Game changer!
Great job! Great energy! Calm intelligence! Simple A to B information! Highly likable and recommended!! ⭐️
I appreciate that!
6000 pounds is Gross Vehicle Weight, that means Curb weight plus payload capacity. so a heavy SUV with 5000 curb weight that can carry another 1000 pounds qualifies for section 179
hey guys pat here from hostons home automation llc .i just wanted to thank you guys again . after watching this and the credit video , i was able to get a 2020 chrysker pacifica s seats 7 or stores 8 ft of cargo . it gets 80 mpg and qualifies for the setion 179 deduction . perfect for lyft , odd jobs chaffeauring etc . it shpuld make me 700 k in 5 years if verything plays out right
When it comes to Section 179, there is a $25,000 depreciation cap for all other “heavy” vehicles like the G-Wagon mentioned. To take the full accelerated depreciation you must have a vehicle that is described as a passenger van, utility truck or utility van.
Suggested Video to Watch Next: 8 Cars You Can Get TAX FREE - ua-cam.com/video/1NKfdORdeDk/v-deo.html&t
So here is my question. I heard that you can file section 179 for Tesla model Xs because of their extreme weight (meet Kevin is the person I’m referring to right now). Could I still file section 179 for a used 50k model x or would that only be applicable for new model Xs? I’m pretty similar to the model you gave where I drive 30k miles on average for work and a used model x is within the budget, as well as a cool choice for its lower monthly running costs. I cannot yet comfortably buy a new model x as a business vehicle yet.
@@ziolan8970 you can utilize 179 for used vehicles. But they have to be purchased or financed. No leases. And you need to utilize a corp or llc. You can’t have it in your personal name. Is a model x over 6,000 GVWR?
@@bebin73 oh, so it doesn't work with dba's?
So just to be clear, the vehicle has to be put in the name of the business and you can only use an LLC or corp...correct?
@@GoaWay... correct
@@GoaWay... but if you have a DBA then you already (should) have a Corporation or business. For example, business owner John Smith might file the Doing Business As name "Smith Roofing." Corporations and limited liability companies (LLCs) may register DBA names for specific lines of business. For example, Helen's Food Service Inc. might register the DBA "Helen's Catering." The biggest difference between a DBA and an LLC is liability protection and tax benefits. Under a DBA, there is no distinction between the business owner and the business. ... On the other hand, an LLC provides limited liability protection. The business owners' personal property remains completely separate from the business.
Very valuable. Did this for 2021 and saved over $30,000 in taxes. Thank you!
What kind of vehicle did you purchase?
Sounds like my company needs a 2021 RAM TRX.🤷🏻♀️
lmao you and i think alike
Bruh lol
Yup
Hell yeah 🤣
All land scaper and pool guys like “👁👃👁✍️”
Sounds like my bussiness gonna need an AMG, why not
I have one ☝🏽 recommended
Lol
🙌🏿🙌🏿
All Day!
AMG "Bitch better have my money"
This is not entirely correct and a bit misleading. In your example, you mentioned that the company had 150,000 in taxes payable. Using a section 179 deduction, if a business use vehicle costs 150,000, that amount does not get deducted from your taxes payable of 150,000 but rather from income. The correct way to phrase it is if you buy a 150,000 business use vehicle, you multiply the cost by your marginal tax rate, say you are in the 24% bracket. That’s 150,000 x .24 = 36,000. You have saved 36,000 from your taxes payable of 150,000. That’s if the car gets 100% business use, if 50% business, then it’s (150,000 x .24).5 = 18,000. You will only get a deduction of 18,000 from your 150k payable.
Yeah you spend 150k to save 36k🤷♂️ to each their own
I freaking LOOOOVE this channel. They go into such good detail and explain in a way the most common man can understand
Thank you Dale!! 💯
Yess!!! So glad I was blessed to run across this channel. Going to use them too!
me too! so glad I found this today!
If anyone needs business decals for their car in California lmk, I’m a vinyl wrapper and we can print out anything you need and the wrap is also removable so you can protect your precious paint as well 😇
Plug talk
ALREADY SUBSCRIBED... LET'S NETWORK...
@@MariaRodriguez-qp6op of course, let’s do it. What did you have in mind?
@@wraptonic Marketing, Networking, Merchandise & Collaborations on the East Coast
Where in California?
Dude i was so f**kin frustrated about being stuck in my lease now you've given me the greatest loophole ever. Seriously bro thank you so much. Can't beleive I'm just findingthis out. Omg thank you.
In Virginia, if you claim a vehicle as business your personal property taxes go way up--thousands for an expensive vehicle. The tax offset may still be beneficial, but be aware of how localities try to bite back.
That's a write off as well also.
The newest Cadillac escalade with Super Cruise technology!!
For my personal Private Uber business!!
G-wagon is my dream car .I just started small cake business thank you for the information 🙏🙏🙏❤️
Be careful with this guy's advice. He's failing to mention that Section 179 is still limited by the higher Section 162 that says expenses need to be ordinary and necessary. Try explaining during an audit that you NEEDED a g wagon for cakes.
@@mtigress4589 all she has to do is get her car wrapped with her business logo & say it's for marketing.
@@BeshEntertainment That's not true. These personalities make it seem like it's that simple but it's not. They play the odds of the return coming under audit.
@@mtigress4589 G-Wagon grabs attention great for advertisement.
@@Kay.D to that point it would be asked how often is it being driven just to advertise. How big is the company info on the car. Who drives it for hours without mixing with personal errands at the same time. My problem with this video is they are trying to sell the idea of writing off your dream car for business but most ppl would like to drive their dream car recreationally. Ppl popped for audit aren't going to be able to get out of a huge bill saying a video gave me this advice.
Stopped the video like 1 minute in. So I can't do any of this unless I have a business. Got it.
You can form an llc and then contract yourself, and pay the llc and then pay yourself
Taking my business serious this late in 2021 and from this point on, this was a perfect recommendation from UA-cam as I’m a mobile diesel mechanic 👨🏽🔧
2022 Freightliner M2 Business Class Extended Cab RollBack with a 21ft Miller Chassis! (Don’t know if Tow Trucks qualify but I’m putting it in the Universe)
Cheers!
I mean that sounds like a utility truck to me. Just saying
---Accountant
My professor did this with his car, his suits, his phone, everything! Genius
Please, explain how as a professor, he wrote off his expenses as a business? Hmmmm
@@judyhall5624 he owns businesses outside of his professor role
Found you guys the other day and i'm learning so much, thank you for uploading these great videos! Even though i'm Canadian and looking for Canadian tax information, this was very informative. Wish there was a Canadian channel like this!
Thanks for watching! When you learn, you should start the channel 😉
Keep doing what you doing my brother. Trying to jump my business off from scratch and I had a lot of questions about buying my vehicle and you put me on point thank you keep up the good works!.One Love!❤🙏😃
You’re so laid back and helpful man. You’re cool
Thanks, Airmett. You're even cooler for supporting the channel. Thanks.
I Learned more than I learned in My whole life off of this video! Very informative and Valuable. Thank You for Sharing 💯😊
Wow thanks for such a good time wonderful comment, glad I could help
Listen, I subscribe to a lot of informative business channels and you by far explain the process, the follow thru, and the end game better than any one of them.
Thank you for taking the time to do this for all of us small business owners. You make a dream become reality.
WOW, this comment means so much to me. I am glad that you took the time to write it and share it with our community. Thanks for watching :)
This one felt like it was extra high quality. Thank you for the great info + presentation. Just got a Model Y. Next is Cybertruck and Roadster!!
Good choices!! And thanks that means alot coming from you of course
He really had no idea what he was saying...
I did this with my lambo and Porsche
I got a few questions my man
I have a full time job. Pay traditional taxes.
I started doing DoorDash on the side and I’ve been tracking my miles.
1) how can I prove to the IRS about my deliveries if I got audited ? I’ve been just logging the mileage
2) how would it affect my “traditional taxes” from my main job?
Thank you in advance. I might buy a Lambo to door dash in 😎
BBBBRRRROOOO! i was wondering this so long and i bought my dream car to drive and for the collector value!
This is GOLD! For my small buisness!
Santa fe diesel is my dream car, but I think X5 is good for my business.
The purple Rolls Royce Phantom!!!! It’s the business!!!
For me actual expenses has exceeded standard deduction since 1978.
The most deduction you can get is if your business can justify buying the car and it is for business use.
This guy is really good. Great info and delivery. Editing is top notch. Subscribed!
I just love finding extremely valuable information
We do our best to deliver every day!
If you write off 100% of the vehicle using code 179 in 2022, are you still eligible to use the standard mileage rate deduction on that same car in subsequent years?
I want a heavy duty deisel truck to start up my roofing and demolition business, this was very helpful 🙏🏽💯
Glad I could help
@@LYFEAccounting hey bro I’m starting up my business that being said if I want to get a call my business name immediately I know I will have to do a personal guarantee what I have to put something down? And what do you think the minimum score is for my personal credit 650?
I appreciate this concise breakdown!
You’re welcome!! Are you subscribed?
One slight distinction I don’t get but seems important. You say several times that doing these things will allow you to get your dream car for free. But I don’t see how that is. If you are writing your car expenses off, that reduces your AGI / tax bracket which will lower your taxes. But it’s not like all these expenses disappear. You’re just paying a little less taxes. For example. Say I make 100k a year and so my effective tax rate is around 20%. Aka I’m paying 20 of that 100k in taxes. But now say I buy and expense a 20k car. So my AGI becomes 80k. My tax rate drops to say 15% or 15k. I saved 5k in taxes. My car cost 20k. So in the end it’s like my car cost 20-5= 15k
Thx my dream car is a Model 3, I want to use it when I retire to transport clients/patients to their Dr appt, and do UA-cam vlogs for people over 60 yrs old to learn about tech…I have so many questions…peace
GREAT info, super easy to understand! Thank you for taking the time to provide such valuable information 🥰🥰🙌🏾🙌🏾🙌🏾🙌🏾🙌🏾
You are so welcome! Just curious, what was your favorite part?
Really liking the 22-23 GMC Denali 2500 AT4.
Cadillac 600 I'm going all in!
That’s crazy. I wish I was smarter to start a business and take advantage of this. But I’m a humble layman
I have a couple of questions, but first I wanted to thank you for taking the time to explain this.
Question 1) does this applies if we purchase a used car and deduct it in 1 year one? Or the car has to be new? 2) can we purchase a second car on year 2? Thank you very much in advance and if you can DM me with your office info please.. thank you!!!
I believe the vehicle has to be new. I personally know some one with a business and they always get a vehicle new after they can’t get any more tax write offs they get rid of it and get a new one. Check with local state laws because laws are different state to state.
Great video. Thank you for providing concrete examples of exactly how to do this. I.e. write off one's car. My accountant doesn't even explain it this well !
Time to replace them
My dream car is 1947 Chevy fleetwood . But I like the Bentley and TAHOE
So the key is to identify if you’ll have a huge tax bill so you can use that strategy. If not you’ll be coming out of pocket to make those payments?
Something he didnt mention.
COMMUTING (To and from work) are not deductable. So your standard mileage expense might look smaller if you only track your miles for actual business
Correction: Commuting to and from your office(s) is not deductible.
What if I work from home (my office). I drive to the post office 10 miles away (business mileage) but then 10 miles back to the office, do I count those 10 miles as well?
@@LYFEAccounting what if your business is run out of your home?
My dream car that weighs over 6,000 pounds is definitely a G-Wagon or Rolls Royce Wraith
Wow, I didn't realize the wraith was 6,000 pounds. Makes so much more sense now
Love your channel. Easy to follow and can rewatch if needed!
Fav car mustang Shelby GT350 & GT500
I know I subscribed for a reason. My dream car is the hardtop convertible Range Rover
My dream car is jeep Cherokee trackhawk 2018 🤟🏽💯❤️🔥🙌🏽👍🏽🙏🏽 i cant wait im using business on that with grantz paid it off to get it out the dealership lot
Thank you. Great information and easy to follow
Dream car is Range Rover SV Autobiography. If i use to fullyine for delivery services could i write off 100%
For real...like Sir is this really true..thanks for knowledge.
You’re so welcome!
@@territhomasthon5628 you don't have a comment above. 🤔
G Wagon for sure
My dream car is Chevy Suburban
I am a realtor and my dream vehicle is the 2021 Cadillac Platinum
So I can claim tax exempt for the whole year then buy a 6k lbs car and, the write off amount will negate what I'd owe on income earned taxes?
My dream car is range rover sport
Now thats a nice car :) and I think you can get it
@@LYFEAccounting can I get a Ford Raptor?
If my LLC made $100,000 net profit, and I want to offset that with a Dodge Ram truck costing $50,000 (not clear if that is considered a "utility truck" or what defines that term). I can purchase one for cash, and deduct all $50,000? What is the 30-40% you mentioned?
I forgot about this…. And I needed a new large sedan car or even Sprinter van for business.
We own a business and have several other cars and trucks as personal vehicles.
Thanks.
You've definitely got to take advantage!
Wow!! Amazing explanation I’m studying for my EA and your content is extremely helping. Thanks for your time and knowledge.
That means a lot to hear! Hey shoot me an email sean@lyfetaxes.com - after you get your EA, maybe we can work together?
My dream car is a convertible zl1 2017-2022
Love your Simplicity.
What is the difference in writing off the “lease” but not the loan payment? Isn’t it essentially the same thing? Could you please elaborate this or direct me to another video if there is one explaining the difference in the two?
I also have questions about this
I would say a lease gains you nothing long term. It's basically renting a vehicle. When you are making payments, a large portion of the payment is building equity in the vehicle. I paid $600 truck payments for 4 1/2 years and sold the truck for all my money back. If those were lease payments, I would have gained nothing but the use during that time frame.
I have had 2 G550’s but never bought one new. I have a 2021 coming in late October and am going to use section 179 and accelerated depreciation. Did this with an F250 platinum for my property co this year.
When you write the car off in October will u receive the money back the same year ?
@@Awakened_journeyz you don’t receive money back, you just have it negate that amount of tax liability. Meaning if you owe $30,000 in taxes and can deduct $20,000 through a vehicle, you’d only owe $10,000.
@@bebin73 Wasn't sure if I could write off a Truck for an investment property. Thanks
@@716swaggstar as long as an llc owns the property and truck, and you have legitimate need for a truck in order to run the business
Thank you for the great content! I assume the registered owner of the car has to be the business to qualify for section 179 deduction?
Great video as always. Thanks, Sean!
Glad you enjoyed it, Shannon! :)
Thank you, Sean!! Great content.
I appreciate that!
This is one of the many ways people in corporate America stay rich without paying taxes while lining the pockets of luxury brands....
Taxes are just a portion of income. You still have to make money to owe the money.
@@inter5123 you clearly don't get it.....this is why deductions exist! They write off and deduct so much that they end up owing little to nothing after they've raked in millions.
Fully loaded Range
I just purchased a box truck so I guess I qualify code 179..
Your information on 6000 lb vehicle is partially incorrect, there are special clauses in there so you cant take the full deduction in one year on particular vehicles, nicknamed the "hummer" clause
This guy needs more love
Excellent video. Goal of a model 3 Tesla for 2022! Using actual expenses for gig work :)
Thank you and best of luck to you! 💯
Amazing stuff! Thanks for the informative video!
Audi R8 is my dream car
Great break down and delivery 🔥
Ahh I really appreciate this - Sean :)
Excellent video. I appreciate the knowledge
Great content! I have a couple of questions if you don't mind?
1. What if you have a full-time job, but have an LLC for a side business that has two licensed owners, but one of those owners (me) uses their personal vehicle to make sales calls to try to earn business. Can I track mileage and wear/tear on my personal vehicle while making sales calls? 2. What impact would this have on my personal taxes if doing so, considering I also have a full-time job?
1. You can just track the business related miles as he showed in the video. If you want to track actual expenses you can use the miles method.
2. Yes it will have an impact. Typically in a positive way, but consult with your CPA who knows your personal situation.
Best Channel Ever!
Awesome quality and informative video, Thank you very much. Dream car is a gtr & hellcat.
G Wagon AMG
I hate I don't understand numbers😮💨😮💨 hard work ahead💪💪worth the effort tho. 2020-2021 Camaro ZL1
Maybach GLS 600❤
You have a great vibe and delivery man. Keep this up g!
Thank you! Will do!
Thanks for the info bruh. After watching this I think leasing is the better option for me.
G-WAGON
Yep!
I just want to clarify for any non-accountants: you will still pay for the car, the deductions in this video reduce taxable income, which depending on your tax rate can be as little as $0.15 on the dollar. So the car is not free. Although, with enough miles, you could in theory get the car for free eventually with enough tax deductions depending on how many miles/years and your tax rate. I never use actual expenses for clients because the standard mileage rate is almost always better.
You are exactly right! Which is why I recommend leasing a car or simply writing off miles or both. Section 179 is almost asking for an audit. And like you said taking the mileage deduction is much better in the long run. (Easier to defend as well).
Does the US not have a cap on deductions using the cents per km rate?
@@ganilau4214 They do not have a cap, but if its like 40,000miles on one car than you may have to prove it if the IRS asks, but if you have 2-3 cars and you drove 60k miles in a year thats going to be really hard for them to prove that you don't so they will most likely do nothing at all. The rate for the miles deduction changes every year.
@@jmedia82 wow. Here in Australia the cap is $3600 using cents p/km
@@ganilau4214 Since im in the US you essentially get to tell the IRS to go fuck themselves if you know the law & have the tenacity to it. But the rate changes from 0.545 per mile one year to 0.58 in another. The IRS changes it every year so its "fair".
I feel like the part which is confusing me is how we as the consumer interact with the business. Like.. you're starting a business with zero funds. Can I just go out and spend 100k of my own money on a car under the business name? Also say I do that, the write offs are only for the business. So the only benefit is if the business is making money? Meaning if I paid for a call in full under the business name. I'm writing things off but if the business made no money is doesn't matter?
Hey guys just as a heads up..u can still “write this expense off” however it’s still on your balance sheet as a payable and guess what..u still owe and have to pay it. Yes I’m a CPA.
So it’s no point writing it off?
@@chuckychucknetwork9190 writing off just means you get to deduct as an expense from your income. The net of those two is net income “NI”. This NI flows into your 1040. This is the pass-through income. So yes it’s worth it to “write off”. But most folks think “write off” as something free. When in actuality you already paid the cash to buy the car or gotten the loan to finance the car. And if you did finance it, guess what..you still owe them the $$.
@@Tony_CPA The money you would owe on taxes you can use to buy a car instead of paying taxes to the irs?
That part - "The money you would owe on taxes you can use to buy a car instead of paying taxes to the irs?"
You're not saving the whole amount of the purchase of the vehicle but merely the taxes you would've paid on that amount.
Hi I’m an Uber driver, can I buy a 6000 lbs car and use section 179 as a taxi driver? I think there are exceptions
Oh, honey. My wheels are spinning, in a great way. Thanks for the awesome content!
Thanks for watching! What’s are you plotting? 👀
Bro I learned a lot wtf!! information is soo basic and simple but never would of thought of
Happy to help! Be sure to checkout our other videos to fill in any gaps.
If they made a G-Wagon Electric that would be my ultimate dream car. 1 of my 5 top cars I'd say!
I work as full time job and I bought Kia telluride for $63000 and I’m using it 90% for. Uber .. how can I right off my whole car? I bought my car in cash
Awesome video brother, thank you!
Thanks for the info
Uber, lift.food delivery count for tax reduction.
Tesla model X with Ceramic white interior🖖🏾