How to Write Off 100% of Your Car as a Business [STEP-BY-STEP] | Vehicle Tax Deduction

How to Write Off 100% of Your Car as a Business [STEP-BY-STEP] | Vehicle Tax Deduction | Sec. 179

Рет қаралды 196,644

Күн бұрын

Learn the steps to writing-off your car, allowing you to pay less taxes and put more money back in your pockets.
WATCH NEXT (2023 UPDATE): • How To Write Off Your ...
As licensed CPAs who study the tax law, and business owners who use this exact tax strategy, we want to give you the best information on how to write-off your car.
Specifically, you are going to learn:
Cars We Write-off: (0:00)
Rule #1 Business Purpose: (1:40)
Rule #2 Business Travel: (2:25)
Step 1) Business Use %: (4:30)
Step 2) Choose Vehicle Tax Deduction Method: (5:00)
Standard Mileage Method: (5:14)
Actual Expense Method: (5:44)
Eligible Vehicle Expenses: (6:22)
Types of Vehicle Depreciation: (7:19)
IRS Depreciation Limits: (8:20)
Sec. 179 Loophole to Deduct 100%: (8:48)
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

Пікірлер: 230

@LYFEAccounting 11 ай бұрын

IMPORTANT UPDATE: BONUS DEPRECIATION IS 80% IN 2023 AND WILL BE 60% IN 2024. WATCH THIS VIDEO NEXT FOR THE MOST UPDATED INFORMATION: kzfaq.info/get/bejne/rbyPpJR6ypyloI0.html

@briceh1001 2 ай бұрын

I have 4 questions. I purchased a 2024 Honda Civic which doesn’t meet the 6000 pound requirement, am I able to deduct anything at all for my purchase? And if so, #1 What if I use my vehicle to do Uber? Can I write that off? #2 What if I rent my car out on Turo, can I write my vehicle off? #3 What if I rent my vehicle out to someone, can I write this off?

@AdrenalineandEpiphany 2 жыл бұрын

There is something you left out. If you have your own business with a location and a home office, you can deduct your regular travel to work as a business expense if you setup your business day correctly. If you start your business day working from home in the home office for a few hours, then travel to the business location to work a few hours, then travel home and work a couple hours in the home office to end the day.... then both travels are business deductions.

@tsunamieyes 2 жыл бұрын

Smart 🤓

@terelldepina7095 2 жыл бұрын

Scorp lifestyle

@Lifechanging99999 2 жыл бұрын

I’m fairly certain that’s disallowed. You can only deduct travel to other work sites after your main travel to your job.

@AdrenalineandEpiphany 2 жыл бұрын

@@Lifechanging99999 yes that's correct, and in this instance, you're mainly working from home. They consider your walk from your living area in your house to your home office as the main travel to your main job because you're working from home and you only spend the middle portion of your work day in another location, causing you to travel, during work hours, from one work location to another, which is a deduction.

@CULTUREVULTURETV Жыл бұрын

Great video what’s your Instagram

@thedavevidal Жыл бұрын

As always....this is the absolute best channel for accounting advice. A gamechanger for me as a small business owner.

@brandonj7440 2 жыл бұрын

Incredible job. You guys are quick, to the point and provide the useful info. I used your method last year to write off my f 150 for business but it was amazing how many tax advisors looked at me funny when I explained the method and section to do it with. They had no clue.

@ITSjpBitch1 Жыл бұрын

Or was surprised you did

@maconjokez Жыл бұрын

Does the truck have to be 6k GVWR and 6ft+ long bed to qualify for 100% bonus depreciation?

@ShakyHands556 Жыл бұрын

@@maconjokez just 6k GVWR, bed size doesn't matter

@blipblop92 Жыл бұрын

Same here. I spoke w some "tax advisors" and theyre clueless about section 179. What a tool

@aleksanderdomberg630 2 жыл бұрын

Thank you both for providing the world such value. Be blessed!

@user-by6io6qu4b 2 жыл бұрын

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@LordRocco777 Жыл бұрын

I subscribed within the first couple of minutes, you two do a wonderful job thank you 👏🏽

@houstonshomeautomation3524 2 жыл бұрын

Firstly congratulations on the new edition I'm so proud of you guys Secondly you guys are doing a huge benefit to the small black business owners community As I've said before I use this exact same method to get a 2020 Chrysler Pacifica hybrid pinnacle edition That I used to promote my business and to ride share all 100% able to be deducted. A lot of other youtubers tend to do Speaking seminars throughout the country touring . I know that's a lot to X with the new family and everything but maybe Koran ....

@valmontgroup 2 жыл бұрын

Great advices guys. Keep pushing!

@DeneeDubwa 2 жыл бұрын

Awww, congrats LYFE team❤️😍 & as always, thank you for the great information!

@Blessed-th4od 2 жыл бұрын

Yayyyy congratulations u guys on y'all's new addition 😊

@arliepeyton 5 ай бұрын

You two are fantastic together: very clear and useful content! Thank you. 🙏

@michaelabraham7747 2 жыл бұрын

Love the chemistry...and congrats on Baby CPA.

@JuanSanchez-nn1db Жыл бұрын

Pure gold...thanks for sharing!!

@Laracroft19986 2 жыл бұрын

Awesome video! Thank you guys!

@MorpheusYung 2 жыл бұрын

You guys are changing lives, just wanna thank you

@jimbrown1707 Жыл бұрын

You both are awesome! Thanks!

@GDunnPT 10 ай бұрын

Great video. Thanks 🙏

@tezt3740 2 жыл бұрын

One of the best videos ive seen on this topic...great work and quality!!

@rogeliorodriguez5331 2 жыл бұрын

This is gold!

@jamescrenshaw5097 2 жыл бұрын

Very good presentation of the topic!

@GoFastJames 2 жыл бұрын

You both did a good job on this video, to the point and video looked good with the cars. One thing I found over the years most CPA's and or accounts seem to not grasp youtube as in making money with it, and dont many told me they dont see how youtubers can write off cars even tho the content is based on cars. If you made a video on how car youtubers can write off the cars they use for content as well say someone like MrBeast how he would do taxes lol, you would get a good amount of views and possibly business.

@simbaproductions4624 2 жыл бұрын

Spot on! That’s exactly the question I’ve had for so long and partially my motivation in watching this video, trying to understand how car KZfaqrs do it

@ChristinaD1996 2 жыл бұрын

This video has been Dale approved! No "axing" of anyone, found!

@FinancialFreedomMadeSimple 2 жыл бұрын

Keep up the great work!

@n7y8c7 2 жыл бұрын

Thank you for publicizing this info. It got me a "free Infiniti!" Next, it'll get me a Rivian!

@MalluStyleMultiMedia 2 жыл бұрын

Excellent video.. good information 🔥🔥👍👍

@nevea.4621 Жыл бұрын

Excellent video !!

@jackieosby7154 9 ай бұрын

Great informative video

@REVIVALFitness 2 жыл бұрын

Keep up the great content y'all

@JJ-uh7jh 2 жыл бұрын

The TURO cars on point lol good video guys.

@InvestBetter. Жыл бұрын

Great video Thanks!

@travay6328 2 жыл бұрын

congrats Krystal🎉❤🤗 I am so happy for you two

@abel3694 Жыл бұрын

what a great video thank you soooooo much

@xmen123ify 9 ай бұрын

I saw this video at the beginning of the year and I set up my LLC for my delivery service busniess and I am hoping I can deduct my 2023 Jeep Cherokee lol 😂. Have a very detailed log of all expenses. :)

@SubliminalPrescription2xDaily 6 ай бұрын

I’m happy I found your channel… Taxes are coming soon… Can you please make a tax deduction video for gig workers? Instacart and Spark are the two that I do. Thank you so much for your advice.

@kimd8873 Жыл бұрын

CONGRATS!!!!!!!!! 🥳🥳🥳🥳🤗

@9doggie12 2 жыл бұрын

You have come a long way from rockdale congrats!

@mrricebowls2019 2 жыл бұрын

Congratulations 🎉🎉🎉

@RoundzMusic 2 жыл бұрын

Yes!? Your home can still be the business location I think!

@ibasaints 2 жыл бұрын

Great video guys. Have a couple of questions: What happen if you promote your Bussiness under your business owned vehicle with your own company decals? Does that kind of promoting count as business mileage?

@kingjaries Жыл бұрын

From what I am aware this does not count since you aren't driving to a specific destination to do business. But perhaps you can drive your vehicle to an event to promote your business maybe like a convention center, fair, etc. but I would imagine you also require documentation that leads to the business obtaining income.

@adelecosse8799 2 жыл бұрын

Can you double dip traveling to a job that you do are the employee and also doing personal business at that job? Example, I am a flight attendant. If I am flying for work but happen to be delivering my product to someone in the city I am flying that day, would that still qualify as a business travel and be deductible?

@deedoubleu7339 2 жыл бұрын

Your business could be renting office space at your home. Technically your home is considered a business space

@amandawatts1317 2 жыл бұрын

And if you’re a realtor going to meet clients at homes wouldn’t it be considered business travel as well so business to business was not the best example in my opinion

@warrencrescenzo9569 2 жыл бұрын

Your guys are great! I have a home office and then go to other business locations. I think it can be deducted. Please discuss deduction as an employee. Best wishes on the new baby!

@AdrenalineandEpiphany 2 жыл бұрын

Yes, if you setup your business day correctly. Start your business day working a few hours in your home office, log what you do at your home office, then travel to a business location to work for a few hours then travel to your home office to work for a few hours and end the day. As long as you are logging what you're doing at the home office and starting and ending your business day at the home office and you have to make certain you work for a few hours each time then any travel during the business day is deductible to or from a business location. It won't work if you only work an hour at the home office and then travel to work and then come home and relax. But if you work 2 hours in the morning at the home office then travel to a business location for a few hours then travel to the home office for 2 more hours before signing off the time clock. Then its all deductible.

@amlandcarellc3164 2 жыл бұрын

@3:55 you answered my question as I was thinking it up. Yes, A home-based biz would "work". Right? irs approved.

@veadabassadeaux3809 2 жыл бұрын

Congrats

@UsaProAlarm Жыл бұрын

My guest to your question is if your home office is your main place of work any trip to your stores is deductible.

@yassinelam8269 Жыл бұрын

Hey guys, thank you for the video, Isn’t the new limit of deduction since 2021 on all SUV’s over 6000 pound is 26.200$ in the same year?

@schemerzzzz4875 Жыл бұрын

Can i purchase a truck (over 6k pounds), then create an llc and write it off? or do i have to open a llc first?

@busyteacher2 Жыл бұрын

Thank you for the video. Do you have a video on "How to Study for the CPA exam?"

@martywhite1822 2 жыл бұрын

If you use a specific space in your house for business im assuming your home is now a business address as well?

@shainewinter8264 Жыл бұрын

You guys left out the most important. I own a trucking company and my apartment is my business address. I start my day by checking my dispatch, and driving to my truck. Is my leased vehicle (given I leased it in the same year) a write off.

@eggsythex6306 Жыл бұрын

Did you claim sec 179 and bonus depreciation on the Porsche taycan featured in your video? It’s not a truck or suv but it is over 6,000, so does that qualify?

@sagarsigdel6893 2 жыл бұрын

For section 179, does the vehicle have to be over 6000 pounds?

@jamescrenshaw5097 10 ай бұрын

I just came back and watched this. Is it true that if you use the standard mileage method, that depreciation is a part of the calculated cents per mile amount? And if that is correct, if you choose 179 or bonus depreciation (not the same thing), then you must use the actual expenses method if you write-off the cost of the car in Year 1?

@ML-bs6dn Жыл бұрын

Thank you so I could put actual expenses and I could put it under an asset I could use both methods? Because I got a big deduction, and I want to make sure I could put both on my taxes

@A1.CLiiiPz 2 жыл бұрын

Does this work for vehicles used on Turo and uber?

@GK-bt6dn 2 жыл бұрын

QUESTION: Could you please give the answer - You say about small business, form 1099. But can I use this deduction for S-corp??? Could you please make some videos ( tips) regarding S- corp... Thank you in advance.

@tsunamieyes 2 жыл бұрын

Yes..my home is my business address..😻

@wavygoods877 2 жыл бұрын

Same here that’s what I’m trying to figure out lol

@naikeelovince7774 2 жыл бұрын

CPA child’s God Mother right here 💓💓💓

@PGMP2007 2 жыл бұрын

- QUESTION - @LYFE Accounting If you declare one of your house rooms as an office to work from home, but you have to travel to the official business office to have a meeting. Would that travel be recognized as conducting business.

@OXFOOT 2 жыл бұрын

Not sure if you'll see this but if I film outdoor content and travel from my business to somewhere in the mountains to film, that can't be written off because it's not a "business".

@gamlielu Жыл бұрын

Very nice although I do not need it. How about using the car for the owned rental property use only?

@ML-bs6dn Жыл бұрын

So could you put it under section 179 under an asset plus the actual expenses could use both methods ?

@dz4679 9 ай бұрын

As a part time seller on Ebay, would I be able to take advantage of Sec.179?

@blipblop92 Жыл бұрын

Do i have to use commercial loan with higher interest to get the depreciation?

@rogerenglish624 Жыл бұрын

For my company I drive all over the eastern coast from warehouse to warehouse repairing and assembling storage rack putting about 40 thousand miles on my vehicle to get from job to job plus job to home and home to job which sometimes is over a thousand miles for me to go home for a weekend would this travel from Pennsylvania(home) to Kansas(current job) be considered a business trip

@sammyvices2547 Жыл бұрын

Does the 6000lbs car have too be paid in full? Or can it be leased? Can it be used or does it have too be new?

@yuniorsanchez2779 2 жыл бұрын

I purchased my car about 3 years ago is it to late to claim it under 179 I’m still making payments on it.

@withgx3483 Жыл бұрын

What are the requirements for a newly formed LLC business to start thinking about leasing or buying a car under the business name?

@midwestzeke481 11 ай бұрын

whatd u find out

@thejetskidszionahmad6454 Жыл бұрын

You mentioned if your business address is residential would it apply to the business to business travel mileage; so would it be considered….

@TheReviewKing909 Жыл бұрын

If you have a home office, would travel from your home/office to a client's house be Business Travel?

@bbblahoo7 6 ай бұрын

Could a vehicle that has a company wrap be used like as in it's a rolling billboard essentially?

@andresfiguereo6879 Жыл бұрын

Does renting a car on Turo platform apply for complete business use?

@angellaracuente6343 Жыл бұрын

So you can only do one or the other for the standard milages, or Actual Expense, you can't do both?

@dmjcounseling8359 Жыл бұрын

Would your home address apply if you are a tele therapist who also meets with patients in the office as well?

@michelleegbunike1657 Жыл бұрын

So that means that you have to have already either purchased or financed it with your business entity correct?

@tjspragg8491 Жыл бұрын

When you purchase the vehicle, is it only taxable if you paid for it and own it outright? Or does it still count if you're making payments on it?

@hannahh.8422 Жыл бұрын

Did you ever find out the answer? I’m curious as well.

@tjspragg8491 Жыл бұрын

@@hannahh.8422 Yes, you can be financing it still and write off.

@hannahh.8422 Жыл бұрын

@@tjspragg8491 awesome! Thank you!

@chrissartin5192 2 жыл бұрын

Explain how a Porsche is ordinary and necessary as an accountant, and how it benefits your practice.

@real1muzik 2 жыл бұрын

It's a car with a quality perception. Great choice! Plus EV / Hybrid

@TheBiggest7.62 2 жыл бұрын

Would a Toyota be acceptable for you ma’am?

@pj-hs7pk 2 жыл бұрын

It’s a green screen

@tyson1chicken 2 жыл бұрын

Clearly it’s an indicator of good wealth management.

@surfingtothestars Жыл бұрын

@@TheBiggest7.62 i'll take a Toyota. It'll def outlast those two Porsches lol

@odariuscole7359 Жыл бұрын

what if the vehicle is less then 6k lbs? is everything still the same?

@nygreek743 Жыл бұрын

So, if you travel from your office to a client's house, this doesn't apply as business travel?

@stephenforth 6 ай бұрын

Could you provide further details on what it means to write 100% of a vehicle that is over 6,000 pounds off the first year. A lot of people don't realize they have to still pay the monthly payments and what not of the car, so what would happen at the end of the year then? You get all of that money back? Etc.

@larry92adventure65 Жыл бұрын

So if I drive my vehicle from one construction to another does that count as business travel

@bcmoon4014 Ай бұрын

Where exactly do these rules apply? I'm located In Canada! Would this perhaps be only applicable in the US?

@FIRE_AtTheBeach 2 жыл бұрын

Can you do a video on crypto tax gains and deductions? Like when you transfer crypto from one exchange to another..and also tax on staking rewards from exchanges like Voyager or Celcius?

@user-by6io6qu4b 2 жыл бұрын

@seanstack180 7 ай бұрын

I just started my business November 2023. I have no income yet but I have had expenses. If I buy a truck this week December 2023 can I write it off this year or do I need to wait till January to buy it so I can write it off in a year I actually generate business income? My wife and I have high w2 income so I would love to write this off this year to offset w2 income tax if possible.

@carworld1089 2 жыл бұрын

Is this applicable for Canada and USA?

@briceh1001 2 ай бұрын

I have a 2024 Honda Civic which does not meet the 6000 pound requirement to deduct 100% of the cost of the vehicle, but am I able to deduct anything at all for my vehicle?

@marketbuy 2 жыл бұрын

Sooo, if I purchase an EV, should I put it in my company’s name and pay for it from my business bank account? Or, should I purchase it from my personal bank account and apply the “accountable plan” to be fully reimbursed for taxes, interest payments, insurance, etc….?

@JuanCarlosRF1 2 жыл бұрын

Good question

@virgoqueen148 Жыл бұрын

Hello I would like to use my car for turn is it best to lease it or own it pls I would need to write it off as a company expense

@geebee9933 2 жыл бұрын

Hello! Thank you for sharing this information. Question: can I take deductions on a used( not brand new) vehicle that I purchased?

@Bluecollarrealtor Жыл бұрын

just has to be new to you

@angellaracuente6343 Жыл бұрын

so if you live in a home under you business name and travel to partner for each location all of that is deducted?

@KevinSmith-oz5oz Жыл бұрын

Can you still claim home deduction this year 2022-2023 and forward. But I do park at my home. This business owns 2 commercial properties. I don’t live at my business post office box, and won’t leave my car in their parking lot. Feel safer parked at my house. I’m not going to park at one of my buildings with no parking garage. So where can I locate my car?

@stevecaple8192 Жыл бұрын

At the beginning of 2023 I became my mom’s caregiver. I am paid for my services out of her trust fund. Can this be considered a business? If so, can I deduct my car expenses for driving from my home to her home, to her hair appointments, doctor appointments etc? Is my home considered an office (business) even though I don’t have an official office in my home?

@EClarity2023 Жыл бұрын

I would love to learn how to obtain a Porsche like yours

@jdubsbd114 2 жыл бұрын

if you do youtube from your house and youtube is your business, im pretty sure that counts as a business location

@1Four3 2 жыл бұрын

do you have a video on how to sell your car to your business?

@LifehasnoNiche Жыл бұрын

What if the business didn’t make any money, Does the business have to be profitable?

@kusharora765 2 жыл бұрын

Were you able to write off the Taycan and get bonus depreciation because it's over 6000 pounds? The language seems to only allow for trucks and Suv to take advantage of this benefit

@user-by6io6qu4b 2 жыл бұрын

@TacticalExpedition 2 жыл бұрын

@@jeremyn6726 Yes it does. 2023 Porsche Taycan/Gross vehicle weight rating 6,162 to 6,349 lbs