Good luck finding a CPA who knows what they’re talking about

Does the vehicle costs include leasing a trucks for trucking companies

They're all Great but I've seen some real savings with the actual expense methods on home & office and car deductions.

@@joshwilson8006 leasing trucks for a trucking company could be looked at 2 ways. Is it more beneficial to count the lease deduction or would it be more beneficial for the company to purchase the trucks and then hold them as depreciable assets as well as actual expenses incurred or mileage……always remember to weigh all options before choosing just one. There’s typically more than one way to deduct an expense so don’t always be so focused on what you’ve always heard from everyone else. From a 20+ year accountant’s perspective the best investment you will make in your business is getting a good accountant from the beginning and maintaining contact with them. Always discuss purchases prior to making them as well as trades, keep them up to date with all loans, new equipment or employees, any changes in your business operations and always keep them in the loop when making decisions. It’s always easier to assist a client in making the best decision for their business than it is to try to clean up a hot mess that was made after the fact. Perfect example would be selling a vehicle too soon that is still a depreciable asset and the company having to take a hit of having to reclaim prior year bonus depreciation. Invest in an accountant!

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Just make them all corps!

I was glad to see you included a holding company in the mix, because I was just about to suggest that. Where in the sequence of creating these businesses did you create the Holding Company?

@@stevenbingham3061 2019 was the year holding company formation to purchase the commercial plaza our restaurant is located in. It’s Important to have a lease between both the restaurant and the holding company like any other tenant. Reason we formed a separate property management LLC for the rentals is that rental income is “passive” income and you cannot have a solo 401K with that setup…however a side door method if you self manage which we do, is to create a property management company that the holding company “pays” for service. Collecting rent, scheduling contractors, etc….this property management company has 2 employees. You guessed it. Husband and wife. Currently the property management company charges the holding company a year 100K for services. Then pays my wife and I 25K each a salary of which we elect 100% of that to be put in our solo 401K. Leaving 50K in profit, however our management company is very generous and also contributes to the solo 401K as well.

@@JayRight321 We opened the restaurant in 2017. Which is separate LLC. In 2019 the owner of the shopping plaza approached me he was dumping his assets retiring. Asked if I’d be interested in purchasing. I jumped on it. Formed the LLC to hold title then. Purchased it 60 days later.

Awesome 👍🏿

Well, for sure. But having videos like this allows a new business owner like myself, to understand which things can potentially be write offs so I save receipts or track certain expenses that I wouldn’t otherwise do, without this information

@@sarahdallos4012 Here is some sincere advice from a CPA with 50+ years of experience, when you go into business you need a good lawyer, CPA, and insurance professional. Given that you don't know accounting and bookkeeping, a two-to-three-hour session with someone that can advise you would be a valuable investment for you.

@@sarahdallos4012same here

Videos like this plus AI equals just use a CPA for the paperwork 😊

@KarIton-youtube- 🤨

Accountant of 20+ years here and this statement has been set off in so many conference rooms on the east coast that I’ve been a part of that I’ve lost count. I’ve been in IRS & NC conferences in which this very topic was brought up and let me tell you that the room went dark. The most important thing you said without saying it is STOP COMMINGLING YOUR MONEY!!! If they cannot prove that you have any personal expenses mixed in with your business expenses then everything is a business expense!! But I’ve not met a business owner yet that has been able to do this! If you can produce me one that is 100% and I mean 100% of the time then it would be like seeing a unicorn!! I preach it to them from the very beginning and I mean from the time I am assisting them during the business planning stages and I keep telling them through the process especially if we go through a loan process and setting up the bank accounts and as soon as the business credit and debit cards arrive I make sure to remind them not to use them for anything other than business purposes. Now how many of them have ever listened to me….the answer is zero!!! By default they always come back with some excuse as to why they had to use it or why they had to send their employee to Kalamazoo to pick up granny with the company credit card and they want me to somehow make it a business write off. The rules are in place for a reason and if you follow them then you can fall back on those rules to save your ass from the receipt headache but if you break the rules I really hope you have that tractor trailer full of receipts because I promise you they’ll ask for them they’ll make you provide them in a timely and reasonable fashion whether they be copied and mailed or digital and yes they’ll go through all of them! They’ll make you check off every deck screw and box of nails and every square of shingles…..I just finished a construction audit and it was horrible all because they couldn’t follow the simple rules! And just for the sake of saying it…I absolutely despise QuickBooks!! I’ve never found it very user friendly but that’s probably because I’ve always used other professional accounting software. To each their own and whatever works for you please use it! A good accountant is worth the expense and honestly it’s one of the best investments you’ll make for your business especially if you’re not disciplined enough to keep up with the accounting side of the business. I take my car to a mechanic to be fixed and I go to a salon to have my hair dyed….i just suggest consulting a professional but I do love this tip!!

How do I file my business was elected to S Corp.

@@smithr2545 are you asking how to change it from an LLC to a SCORP or the different ways to file the taxes?

He was talking about traditional LLCs but he definitely showed the 1120 form at the end of the video 😂

Once the business is open then all necessary & ordinary expenses deductible.

No. That write-off is for the year.

maximum of 300 sq ft. so if your garage is say 1,500 sq ft like say brians lawn maintenance who just built an unattached garage only 300sq ft of it as long as it is a dedicated space within, and you are the owner of said business. so 1,200 sq ft is excluded. measure it out l*w= sq ft if you want to section off a corner again take length * width then divide by 2 for a triangle corner as you are cutting in half diagonally your square/rectangle dimensions to give you that space calculation.

My house is 2000sq ft but my garage is 3000sq ft . Would I be able to deduct 1500 sq ft of garage space if it used for business? Example content creation?

Great question

Yes, as long as it a legit business expense and you have a receipt !

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.

You trade with Annie Brooks too? Wow that woman has been a blessing to me and my family.

YES!!! That's exactly her name (Annie Brooks) so many people have recommended highly about her and am just starting with her from Brisbane Australia🇦🇺

I'm new at this, please how can I reach her?

Her good reputation already speaks for her .I’m also one of the beneficiary of Annie Brooks. So happy I gave it a trial after being skeptic of the process.

I advise you found someone else. His team is not trustworthy

it's not 1500 sq ft. it's $5 per sq foot capped at 300 sq ft.....start up of a new business for only it's first 5 years. business expenses are different deductions from this video....reread the title. do not proceed until you understand fully...if you don't understand consult a business tax agency until you do.

yeah...afford a tax person because you're all SO CHEAP! LMAO right.

Good question

Yes in the year in which you are dissolving the LLC. Example you dissolve in 2023 you file it on 2023 taxes because you will also close the LLC on that same 2023 tax return when it is submitted

If you use it exclusively for business

He has a video on this

My recommendation is to only shred receipts from business transactions when you have a backup copy for your records. Scan the reciept to have it on your computer or refer to your business debit/credit card statement used for the expense. Ink on receipts tends to fade over time (especially when crammed into a wallet), and can be illeligible.

@@mlee117 Thanks a bunch for your recommendation!

You first have to refer back to what start up expenses actually are. They’re only start up expenses prior to the actual creation/registration of the LLC. So that would be #1. Then you #2 issue is that once the LLC is incorporated it is now a CCorp assuming that is the election you went with and I’m not misunderstanding your statement. So if that is the case you would now be filing a completely separate tax return on a 1120 form and not within your own tax return documents at all. The due date for CCorps is March 15th of each year and if you’re being paid by your CCorp you’ll be issued a W2 from your CCorp to file with your personal tax returns. So your question is extremely loaded because the expenses incurred by the corporation will convert completely to “them” as the company!

Yes, you just don't get depreciation.

The Business-Use portion

A moving truck will get you to where you need to be.

Business owner and CPA here: Some deductions are more likely to be challenged by the IRS and are more of a headache to “prove”. Other deductions are simple to prove and the IRS rarely even questions. Some deductions are “better” than others.