Fire Your Accountant, He's An Idiot!
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- Опубліковано 17 жов 2024
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My Dad used to say
"you can't save money when you're spending money"
Then your dad turned around and complained why big corporations like Amazon do not pay taxes. This is exactly why.
Your dad is a smart man.
"Tax write-off" is one of the most widely misunderstood phrases in business. I've heard countless times from ill-informed people that "oh, he just bought that because it's a tax write off" as if the tax savings paid for the thing that was bought.
I think that the origin of the phrase comes from a joke, but most people don’t get the joke and think it’s true. Every time I hear someone say, “it’s a tax write off,” all I can see and hear is Homer Simpson saying it.
I remember when I told someone I paid off my mortgage the response was "what do you do for a tax writeoff". I just smiled.
Especially people who blame the rich for everything use that phrase a lot.
@@shelkatz so you just smiled, you didn't explain further?
As a CPA for over fifty years, I have over fifty years of history being annoyed when people think "accountant" is the same thing as "income tax preparer." Some accountants do individual tax returns for people, but more of us add real value to society as financial reporters, auditors and cost accountants.
Yeah and charge way too much for their services.
@@tyroneshoelaces9742 You're right to say that it can be expensive, but I wouldn't blame the accountants who provide services. I'd blame the legislatures for making tax laws and financial reporting laws that are so difficult to comply with. They could have made laws that each individual could understand and follow but they didn't.
@@tyroneshoelaces9742 You think we're the expensive ones? Let me introduce you to lawyers...
@@ybb_papertrail7137 Yup. They are the worst and you are not far behind them and most of you are miserable with clients who don't want to even deal with them, yet charge an arm and a leg. That's why you are in the same category as lawyers.
@@tyroneshoelaces9742 again... you think we're miserable? Let me introduce you to lawyers.
The account did say IF you are thinking of buying a truck, NOT you should buy a truck. Lots of people talk about the tax savings from mortgage interest, when they can take the standard deduction w/o the mortgage.
The accountant is hired to give advise with tax advantages. The thing is a lot of people don't understand taxes and hear the accountant speak about write this expense off and the client thinks they are able to get 100% the price they paid for the expense instead of giving that to irs.
So are you justifying what was said in this video?
@@tyroneshoelaces9742 sounds like it to me.
The accountant told him IF HE WAS planning to buy a new truck, now is the time to do it. He didn't say the caller needed to go out and buy a truck now. Do people not listen?
No they Don't 😅
That's also what I noticed, the guy didn't told him to blow money on something he didnt need/want; he just told him IF he is considering it he should do it now
And if he needed a new truck a d if he was taking bonus depreciation he would write the entire 30k off in the year of purchase
Next year the guy will call back saying his truck broke down so now what he should do. Lol.
The “guy” who said buy the jet was totally not Grant Cardone 😂😂😂
They lease out the planes when not used and turn profits, I think that's where she meant to go
On the advise of her accountant, my neighbor just bought a new Porsche Cayenne to drive 1/4 mile between her home and business a few times each day. Her five year old BMW suv was no longer covered by her extended warranty, and it couldn’t be depreciated as much as a new vehicle.
New vehicles have new problems, the parts are more expensive to replace. You will also pay much more in property tax (yearly) if your state has property tax on vehicles. Insurance will also be higher. If the truck is bought with a loan you will lose money by paying interest. You will also lose on depreciation. How are you saving money again?
Haha, years ago I was trying to find a financial advisor and I met with one who told me that I needed a mortgage to save money on my taxes. My house was paid-for. So, I ask him how I will save money overall if I only get back 25% of what I pay to the bank in interest. I never went back.
Keep the truck till it dies, write off the miles!
Dont buy the truck if your truck is still working and on low maintenance.
Buying something getting into debt to save on taxes never made sense to me.
It makes sense if it's assets such as equipment aka things that make you money.
Unless it is a Roth IRA.
In Australia, we have a thing called novated lease and if you’re in a highest tax bracket and that you do one year leasing, it can save you money.
@@alteclan2007... compared to buying outright maybe. But the caller said he doesn't need a new truck.
Unless it's a home so you get the tax deduction on the interest, plus your equity goes up, plus you actually own and not rent.
“Better than your phone”
He said IF ypu are going to buy a new truck,he didn't say YOU NEED TO buy a new truck. He is just throwing it out there as an FYI since he doesn't know your situation,he isn't pressuring this man into a new purchase. I love Dave but calls like this where they twist whats happening to get back to "the plan" are why his critics say what they do
Yep..... Dave went way overboard on that reaction.
I was blessed to have a professor in college who was also a IRS AGENT! She was one of the best!!!
The IRS hires undesirables
Don't make this about religion.
@@tyroneshoelaces9742 Who did?
Talk about being in the right place at the right time !!!!!!
@@tyroneshoelaces9742 you don't like religion?
I love the dynamic of Rachel and Dave. She speaks to him differently than everybody else!!
Yep daughters are the kryptonite lol
He can take section 179 depreciation depending on the truck. I'd still say that it's better to not buy the truck unless it's needed. That is a general rule I go by but each person's situation is different.
Yeah, it looks like the accountant is thinking about the depreciation that can be used to offset some of the owed taxes. Still I woudn't buy it unless it's required.
@@dcamnc1 Right but the problem is the deduction only reduces your liability, not what you actually owe.
Didn’t we just cover this in the video?
@@chief5981 I hadn't finished the video yet when I had typed the comment.
@@scottkuehner7021 I do that sometimes as well
“Better than your phone” lol
I have met way too many people who think write offs are a gain and not an equilibrium proposition
There's a whole episode of Seinfeld about this.
We got to write off our airplane. Fuel, insurance, hanger rent, etc. we got to write it all off- flew customers out for supper.
This is one of the many reasons why I didn't want to become a tax accountant. Too many people wanted me to magically get them more money by being able to expense or write things off. It doesn't work that way or they don't think of the actual costs and budget like Dave does they just want to look at small tax refunds and feel like they've won.
The man said "better than your phone" XD
dave there is bonus depreciation. you can write it all off this year. now that said still dont think you should spend money you dont need to.
I would rather pay 6k than pay $30-50k on a truck. if he cannot pay all of it he can make a installment plan with the IRS. Can pay it off quickly in 6-12 months.
Basic tax accounting needs to be required teaching in high school. How do most people not understand the most basic stuff about how taxes work?
It's obvious
They want the majority to be poor and ignorant
I don't understand these people either. I'm a sole proprietor myself and I've been doing my taxes every single year. It's not rocket science, what is your income and what were your expenses and deductions. I understand some people might be in a more complex situation than me but everyone thinks I'm crazy for not handing my taxes to an accountant I'm like just do some research it's really not that difficult
Because many of these people were rolling joints and attending house parties, enjoying their youth.
@@Epidombe I never understood why that is fun. You can have fun in your teens and 20s without those things. It's a toxic culture.
@@CubsFan2812 I could change the brakes on my car but would rather pay someone else to do it...
1:52 - 1:56 Rachel trying to hold back laughter lol can't blame her
To put it simpler, it's like those stores that give you "Save $5 When you spend $25" coupons, and then they give you one every time you use one.
If you were planning on buying $25 dollars in items, go for it, but some may find themselves compulsed to use it before it expires, even if they had no plans for it.
Don't buy things you didn't plan to buy. Once you plan on buying it, then look into how you can save money on it.
The tail should not wag the dog.
Very good! 🥰
In the beginning the guy sounded like he was in the middle of a didgeridoo session.
He was , he had to ask the others to stop playing
How are you doing? Better than your phone deserves...
Not enough information just based on this conversation. But if he was my client and he did not need a truck then say okay move on. Would need to know more things like how many years has this truck been used, estimate salvage value on the truck, total accumulated depreciation currently on the truck and so far what was the ROA (return on asset) since life of the truck before even considering the tax benefit of buying a new one
Section 179, immediate expensing to help co’s with lots of income in the current year
Poor Rachel needs to learn so much
this would only make sense if you are borrowing money for the truck instead of paying it off. you are more than likely to offset the monthly cost for a year or two. accountant probably assumed he would borrow money like most of his clients.
She’s talking about Grant Cardone’s short video where he talked about buying a Jet at the end of yr to avoid taxes
Someone else does also
Instantly noticed that once private jets were brought up on Instagram
These kind of tax savings only are worth it if the thing you’re spending money on makes you more money. Doesn’t sound like a new truck is gonna make him more profit.
Edited to say Dave said the exact same thing the moment after I posted this comment lol
Dave didn't explain it either.
His accountant said if. They did not say to buy it.
Section 179. Dave does not know this guys tax situation.
Better than your phone should be on every call cause everyone usually sounds like calling from a 1980s landline
Truck or vehicle are liability. If you need it to do business then buy it. If not needed, then don't buy. The guy said that his accountant said 'If you...'
0:35 - 0:50 sums up the entire call. The caller can’t understand what his accountant is telling him, so he’s going to clearly explain to Mr Ramsey what is going on? It’s like trying to explain calculus to a toddler that can barely understand basic mathematics & then the toddler is the trying to explain calculus to an elementary school teacher who only knows basic mathematics.
Dave gives a two part answer, where either is equally a possibility. The tax guy may be giving fine advice.
No, because the caller said he doesn't need a new truck, and had no intention to use a new truck to generate higher revenue. If the tax accountant had other plans for this caller's business he needed to do a better job communicating with the guy so he wasn't left having to call Dave Ramsey to figure out what the advise was.
Accountant tells him if he’s thinking about buying a truck. That’s the correct advice!
Thank you Rachel for making Dave repeat himself. I was seeing this as getting ten thousand each year NOT 25% of the ten thousand.
He said it the first time. You missed it?
@@tyroneshoelaces9742 I’m hopeless at maths. All I hear is a wall of numbers. I’m the person that needs my accountant to break things down really simply for me. I know it’s a weakness to I find people who can help me better understand how to get the best out of my income and investing.
@@tyroneshoelaces9742 he said it better the second time.
This is just basic common sense. You never buy something just for the sole purpose of being able to write it off. That is blatant idiocy. You only make a large purchase if said purchase is going to help you to grow your business and increase your revenue.
I have been told this for years from broke people in debt.
Even said I should start a business to buy a new more expensive car when they know I have a perfectly fine paid off used car.
They are still in debt working in their 50s and 60s and I retired at 49.
Yep, when you have to spend ANY money to save on total cost, it still costs you money. Not unlike having to buy something on sale to "save" money. You still wind up with less money.
One thing I learned about these accountants who say things like this. They likely work for a tax preparation company. By doing this, it shows on their numbers that they saved their clients more taxes, and therefore helps their progression within their company.
I really like my tax lady. She is super knowledgeable and I learn a lot from her every time. But she tried to get me to do something similar by investing all my retirements into traditional 401K and IRA as opposed to Roth 401K/IRA for the same exact reason.
This is why I don't go to professional accountants for investment advice. Same reason I don't go to professional life insurance agents for investment advice. I go to professional investors for investment advice.
The advice was *IF YOU ARE THINKING ABOUT* buying a truck for your business, now is the time. The accountant is not an idiot, he suggested timing on a planned transaction (if there was one), not to make a purchase for no reason. And many vehicles qualify for 100% bonus depreciation, which ends this year. Don't be so quick to call people idiots unless you are actually listening. 🙄
Is the company going to pay that idiotic price inflation in which ALL vehicles are jacked up to today?
Yeah...ya didn't think that one through did ya. Chances are that answer...to both...is a big far " nope".
trucks are really inflating in pricing.
Sure they are, but if it is a needed purchase, buying it in December instead of January is not bad advice. Advice on making a transaction vs timing of a needed transaction are two different things. Businesses that need vehicles will continue to buy them.
@@motoryzen, are you capable of an original thought?
all personal opinions aside dave's analysis is based on the idea the truck would be depreciated on straight line which is not practically true. the full amount would probably be depreciable in the first tax year through some form of bonus depreciation like 179. I agree in principle though, that creating an expense to reduce tax liability is not a good personal decision, especially since it is only a temporary difference.
@John Sorel I know and I fully agree with that. If you read my whole comment you would have seen I recognized that. I was just pointing out a technical error, which is probably where his accountants misinformation came from.
@John Sorel it factually is an error regardless of how you and I feel about the point of Dave’s message (which we both agree with).
Do not dishonestly expense items to lower you income. If you need to apply for a loan, lenders will need your tax returns for income verification. They use your net earnings, after expenses.
I agree. Seek out a new accountant. Who knows what else he's messing up. I had a bad tax guy that cost me money and time and a lot of headaches. I was new to business and took me time to learn. Lesson learned...
He does not need a new one. They said IF. They did not say to buy one.
“If you’re going to buy a truck, this is the time to do it.”
“Are you planning to buy a truck?”
“Not really.”
Then your accountant literally told you not to buy a truck, just because you’re too dense to understand the basic language your accountant told you doesn’t make him an idiot. This caller is not the brightest bulb.
Lol exactly
Spot on
Thank you. I was wondering why no one picked up on that vital piece of information. I guess it's more fun to call someone else an idiot
I'm a CPA and the majority of my clients are like this...it's frustrating, but they really do need the help so I try and keep that in mind...id much rather deal with the more sophisticated clients but it's not reality....
From an accounting perspective, they look for tax advantages but the goal of any business should be to make profits, not save on taxes.
It’s pretty simple. “You can’t deduct yourself to wealth”. After I paid off my house I had this discussion with many people and a relative. TIME TO BUY A BIGGER BETTER HOUSE “YOU GET A TAX DEDUCTION ON THE INTEREST”. No. I’m a empty nester and don’t need a five bedroom three bath house to get a deduction on interest. The deduction is to help or hurt business owners from your own perspective. However, for the individual buying a truck or a jet you cannot use math to justify the purchase? Whew! Simple 💀
My assumption as well. A truck no, equipment yes. A truck is a liability equipment is an asset. He should go use the money for better equipment that would serve him longer aka earn him more. A truck isn't that unless he is using that as such which is doubtful.
Its always amazes me people spend $1 to save 0.25c you are better off that $1 putting towards debt. If that $1 is going to make $2 then go for it.
The accountant was saying that IF he was planning on buying a truck in the next year, now would be a good time so he could claim the tax deduction instead of possibly not getting the tax deduction next year
I agree and disagree. The way it sounds he reports his income on a schedule C. Not only does he save income tax he will also save self-employment tax. If he needs the truck it will be more of a tax savings than Dave speaks of with him being in the 25 percent bracket.
no it is not. why would you pay 30k or more for a truck, especially it wont change your income, than pay only 6k on taxes?IRS will work with people to pay over time..
@@queen.kristal8395 i did say if he needs it. I am not saying he should buy it to save income taxes. I am stating that by listening to his tax situation it could save him more than just what his tax bracket is. If he is reporting on a schedule C the expense can also offset self-employment taxes as well.
@@jfox71 Like everyone is missing IF. Like they don't know what IF means.
@@jimmymcgill6778 it's OK. Lord knows I have misread things in the past.
@John Sorel really? I know how it works. I said IF he needs it. Correct there will be more money outlaid than taxes saved. All I am saying is the tax savings will go beyond his tax bracket because by his description of his tax situation it will also save self-employment tax.
The tax code is messed up in this country. Every American should own a business. Where it's applicable every American should have a home-based business. It takes a real professional to understand the ins and outs of taxes as an entrepreneur I could tell you that a tax attorney is way more valuable than just a tax prepper or even an accountant.
Lol she’s probably talking about Grant Cardone
Where in Racheal example, did she said the person can get the plane for free?
She never said that.
Dave really twisted the facts on this one.
She said the person said you can write it off. Not get it for free.
I love this show! I love Rachel's and Dave's debates and conversations!
Even thought they're both stupid.
Rachel just showed she doesn’t understand much about taxes, actually. She’s not fit to host this.
I think Rachel was talking about Grant Cardone lol
Does everyone including Dave have mud in their ears? The accountant literally said "IF you are planning on buying a truck now is the time?" Dave was way too harsh on the accountant.
I was LOOKING for this comment. Sounds like the accountant is doing his job well!
I'm pretty certain he suggested buying the car. Stock brokers ask their clients at the end of the year if they want to sell stocks just to book a loss and to that extend, pay less taxes. He has to say if, because it's up to the client to make that decision.
@@sblijheid the caller literally said the accountant said If he was planning on buying a car now would be the time. I dont know if the caller is playing with a full deck though so who knows.
Can someone explain it to me one more time 😂
I don't think the accountant explained it to him enough. To the caller, it sounded like he could right the whole thing off.
Dave Ramsey doesn’t understand that a write off or expense can put you to a lower tax bracket that makes you liable to pay a lot lesser taxes. When you do a write off, it is not to lower the percentage of your income tax, it is to put you down in a lower bracket that makes you pay a lot less taxes then let say be on a higher income bracket by just 30k that will make you pay a lot more in taxes. It’s all about which bracket of income you fall into.
You are getting a discount on that vehicle that regular w-2 folk don't get . Now as a vehicle ages and gets substantial miles it maybe a good idea to buy a vehicle with less miles . If you break down you are loosing money . Maybe a grand a day and the slow motion of getting things repaired could lead to 10 grand of lost revenue in 10 days . Now this young man doesn't have the cash to buy a truck .
I think it was Einstein who said "If you can't explain something, you don't understand it".
Because he doesn't understand it. That's why he can't explain it to this guy
No tax accountant worth their salt would advise a client to do something that worsens their overall financial situation. The accountant should have just advised the guy to pay the $5-6k in estimated taxes quarterly and focus on growing the business. For once, Dave is right to call the accountant an idiot.
For once?? You must be new here. He's encountered a lot of conversations with callers' accountants who have given the wrong advice.
@@motoryzen The accountant said if he's going to buy a truck.
@@motoryzen No, I am not new here. It was a figure of speech, dude. There are also as many times where Dave calls accountants idiots and gives incorrect tax advice himself. I have commented several times that he should not be giving tax advice over the air unless he gets licensed to do so.
I totally get why they do it but I could never call my mom by her name 🤣🤣 I work for her and always tell clients she’s my mom before saying her first name lol! Rachel calls her dad Dave so easy 😩🤣
Yeah, Alex. I believe I once heard them address this. HE wants his kids (who all work for him in come capacity) to call him Dave at the office, because at work, he's not operating as her dad. He's operating as her boss. I think it keeps roles clear, and offers a layer of protection and accountability.
Is there still a possibility of Nepotism? Sure. That possibility is always there, but I imagine they try to mitigate it as much as possible.
I think in the same discussion, they said they NEVER talk about work at home or at family events like Thanksgiving or vacations. If someone wants to bring up work, they have to ask for permission, and if agreed upon, they talk about very briefly, like 5-10 minutes, and then it's off limits again.
Sounds like an interesting, and good thing to me.
We all know you’re talking about Grant Cardon. Just give him a shout out and say his name 😂 only one on IG with a plane writing it off on his taxes haha
HOPE ALL IS BLESSED! AND GET THE FINANCIAL FREEDOM YOU DESERVE!! IN ORDER TO SPEND MORE TIME WITH YOUR LOVED ONES!! AMEN🙏🙏🏻🙏🏼🙏🏽🙏🏾🙏🏿
The accountant may just be terrible with knowing how to communicate with this client.
My guess? At some point this caller and his accountant discussed buying another truck for the business and the accountant merely pointed out that instead of writing a check to the IRS, he move up the purchase of the truck.. Dave hears what he wants to hear and goes straight to "Fire your accountant - he's an idiot!". It's a common strategy to move up or defer purchases in any given year and I would imagine that basement dwellers at Ramsey Inc. (accounting department) probably have advised exactly that.
No, taxes should not "drive" your business, but if you ignore them as PART of the criteria of a decision making process, you are indeed an "idiot".
For being on the radio for 20 years its crazy how terrible Dave's listening compression skills. All he does is listen for a couple key words and launches one of his precanned rants
Try 30.
Thirty years and $40 million.
@@blackworldtraveler3711 yep, cashed in on dumb people. This dude own a business and doesn't even understand how capital depreciation works
Do people with businesses actually not know this ? Guess it's the same audience that takes advice from a guy that doesn't even understand what an algorithm is
Grant Cardone!
😊
Rachel is so beautiful
Almost all personal accountants are plain stupid
Where is Dave getting this 60k from?
Rachel is gorgeous, are we sure she is actually Dave's daughter?
They look exactly alike to me lol
I mean his accountant is kind of right if it’s a work truck it would be lower interest rates
In Dave’s opinion, if the interest rate is make or break on the deal, it’s likely not worth it.
Dave would tell him to pay in cash for the truck so the interest wouldn’t matter
@@edb484 I see
no, the truck will cost you more in the long run.
All it is,is basic arithmetic You're finances are nothing more. Hopefully you graduated from the 6th grade. Invest in yourself and your own situation.
Who crapped in Dave’s Cheerios today?
Someone with diarrhea.
An idiot accountant 😂
Dave, your advice, as always, is sound and good. Free. No one can ask for anything else.
However, please, don't go on Fox News and tell the world that the current high spot price for oil in the world is Biden's fault.
Don't do that. Don't.
You know it's not true and it doesn't help anyone
Keep up the excellent work.
Be well!
But it is Biden's fault. Remember the executive orders on his first day in office? After he reduced US production, he put restrictions on Russia without having an idea where oil is supposed to come from. He insulted the Saudis, so they're not playing along. It seems like oil prices are about to pass 2008 levels; we're very close.
Is Rachel pregnant?
while I agree with the meat and potatoes of what Dave is saying here....the name calling is so unprofessional.
🙏✝️
Is he an Asian? 😆
He gets a new truck thou
And that’s how people stay poor.
You speak broke people language.
@@lvluptoaverage52 not if he has a good income. I have two brand new vehicles because I have good income. People need to stop saving every dime and living like a Vagabond Ramsey wants everyone eating rice and beans, living in a trailer and taking the bus everywhere. He’s crazy.
@@teeduck the moment a person goes to extremes to make a point you know they are trying to cover something up.
He has never said living like a vagabond do you know the meaning of that word. His point of beans and rice is solid. it makes people realize how much in debt they are. If you have a good income then that must mean you have no debt and if you have no debt there is nothing wrong with you having to brand new vehicles but big but if you have a great income in debt with two brand new vehicles then you are wrong about your life choices
First. Lol
Rachel’s talking about Grant Cardone lol