How To Setup a Home Office Deduction (Full Walkthrough)

Рет қаралды 83,144

2 жыл бұрын

JOIN THE TAX-FREE WEALTH CHALLENGE NOW! AUGUST 5-9 2024!
join.taxalchemy.com/join-thec...
Learn the rich's tax secrets with my new book! Click the link below
ebook.taxalchemy.com?
Taking the Next Step:
📞 Book a Professional Tax Strategy Consultation: www.taxalchemy.com/consultati...
Join the Free Tax Strategy Accelerator Community! ▶ www.taxstrategyaccelerator.co...
Watch this FREE Webinar on How to Cut Your Tax Bill in Half as a Real Estate Investor ▶ join.taxalchemy.com/registrat...
Learn How to Grow Your OWN Rental Portfolio & Reduce Taxes Legally! www.taxalchemy.com/consultati...
My Tax Strategy Programs:
Tax Free Living Bundle (47% off): taxfreelivingbundle.com/tfloptin
🏡 Buy Tax Alchemy Rental Loss Program Now: app.taxreductioncompany.com/t...
Book a Discovery Call to Learn More About Tax Alchemy: www.taxalchemy.com/consultati...
Check out these links Below!
Learn How to Self Direct Your IRA or 401k: directedira.com/karltondennis/
*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.
#taxes #taxfreeliving #taxexpert #taxreduction #llc
#taxes #taxfreeliving #taxexpert #taxreduction

Starting a new business? Tax expert Karlton Dennis is here to show you the Top 5 things YOU should be most focusing on as you go through the steps of starting your business.
Some of these include:
-Taking an income-first approach
-Understanding what kind of people are under more scrutiny from the IRS
-The importance of liability and your new business!
⚠️ #TaxDeductions #Taxes #llc ⚠️
Take a walk-through with tax expert Karlton Dennis on how to take a home office deduction in a rented apartment, step-by-step!
It's simple! We will
-take a tour of the entire (rented!) apartment
-figure out which spot in the place will be the permanent home office
-then do some simple math to conclude what the overall tax savings will end up as!
Watch this video to avoid overpaying to Uncle Sam and to get educated on how to leverage the tax code!
*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

Пікірлер: 197

@laschell59 Жыл бұрын

I need help in my 60s and own my home! Please, I am a 1099 disabled person who wants to grow enough to be free of the government “ telling us”, you can only make a little cash or lose it all!!! Your one of the most impressive people I’ve ever seen on REAL TAX LIFE!

@aryeljamese 2 жыл бұрын

Love the creativity of the beginning of the video! A good laugh! You getting better and better at this! Great information as always. So proud of you! Keep going❤️

@tranquilityhub9523 2 жыл бұрын

Simply one of the best KZfaqrs in the game!!!!🔥🔥🔥🔥, I can't wait to meet you!!! Much Respect. Also, if your paying attention; Karlton is giving away little tax deduction nuggets throughout the entire video.

@jenniferjace4677 2 жыл бұрын

I loved this video SOOO much value. I can't wait to apply what I learned here. Mind blown! Thanks SO much, Karlton.

@RolindaP 2 жыл бұрын

I came across your channel today and I am thoroughly impressed. My husband just started a second business and with this business we have actually created a home office. This video I exactly what I needed. I appreciate your knowledge and I appreciate you sharing you knowledge with people like me🙏🏽❤️

@sweetlynaz 7 ай бұрын

Can someone explain why he went from $8,208 tax write off to $2,626 tax savings? So the difference between the simplified method ($1,500) and the regular method ($2,626) would only be $1,126? Or Am I understanding it wrong? Please shed some light.

@thewhyteshadow 6 ай бұрын

@@sweetlynaz an $8,208 tax write-off reduces your income by that amount, which reduces the taxes owed by $2,626 (depending on the tax bracket)

@mf-sp2pg 2 жыл бұрын

I see you measured from the baseboard. The baseboard is usually up to 1/2" thick, which means you could have added up to 1" to each measurement. It's not much, but every little bit helps.

@mcf5878 2 жыл бұрын

I just want to thank you for such a clear breakdown. I appreciate you!

@dad6889 9 ай бұрын

I must say you legit had me reach enlightenment with taxes and owning a business. I haven’t been this inspired for years and thanks to your videos I’ve been able connect the dots and now have the confidence to start a business thus taking steps to my finical freedom. Legit putting everything you’ve taught me in action next year and using the rest of this year to keep learning and reaching so I can be successful once I start. Thanks to your teaching I’ll be able to pour more into my family and make my dreams come true. Please never stop offering this help/advice that you are giving out.

@ky3079 2 жыл бұрын

Omg, thank you thank you! Even my CPA never explained this to me. Your explanation are so clear and understandable. 🙏

@corbinfitzgerald6885 4 күн бұрын

This man is smart, he's showing us how to use 1 room as an office write off, meanwhile he's able to use the entire space as a write off since he's using the entire thing for his YT businesses (with video proof).

@thehaitianambassador215 2 жыл бұрын

You are giving away multi-million dollar worth of knowledge for free.

@frenchyalicea649 2 жыл бұрын

Not for free, hes proving the value of his knowledge and services and how much he charges with informative videos which he also capitalizes on by our watching clicking and commenting. Its not for free, plus write off expenses for the camera, computer etc to create this material.

@thehaitianambassador215 2 жыл бұрын

@@frenchyalicea649 It didn't cost me anything, and I have decided to buy a 4BR house instead of a 3BR for a home office.

@aao449 2 жыл бұрын

He is indeed giving out incredibly valuable information to his viewers for free, including carefully explaining how to get these deductions. As a business owner I’ve spent so much hard earned money on tax advising services for information he is giving away for free in his videos and every video I’ve clicked on and watched is true and reliable information!👍👍

@frenchyalicea649 2 жыл бұрын

@@thehaitianambassador215 im referring to "not free" because as I stated it actually cost "him" to make it but he gets compensated via clicks, ad revenues etc. So yeah it may be free for us to watch it, but hes definitely getting paid for it via how I stated previously.

@riyadblue20 2 жыл бұрын

Thank you ! You made that soooo clear like never before !

@EstMeaVita2011 2 жыл бұрын

You are amazing! Thank you so much for sharing your knowledge. I didn't know any of this. I'm shocked by the amount of money that I've been leaving on the floor. Thank you!

@j.d.lindsey2919 2 жыл бұрын

Great video! Loved seeing an on-site walk through and breakdown on the whiteboard. You do such a great job of simplifying concepts that others try to make sound so complicated. Keep ‘em coming 👍🏻

@jaredgutierrez3966 2 жыл бұрын

Not sure why this popped up on my feed, but this is awesome. new subscriber here. Great stuff. Love the content!

@stephaniegomez6823 Жыл бұрын

Your videos are eye opening, and encouraging! Thank you for providing this valuable information and helping us to envision our next steps!

@gregoryrichardson508 2 жыл бұрын

Such a professional, informative and interactive video. I like this 👍

@kristycollins5751 3 ай бұрын

As a new Business Owner, this is my first Tax Filing opportunity without a W2 income. Thank you so much for making this video and literally turning on the lights as to how the Home Office Deduction is supposed to work for my best interest. 👍🏽😉

@CorneliusSmalleliterealtor 2 жыл бұрын

great information. I've been selling real estate in GA for almost 15 years. Using the percentage method for a while now but I see there is still money being left on the table. Thanks

@marvfromthecity 10 ай бұрын

Real talk, watching this channel and learning the game has been life changing. Thank you.

@dizzy4u 2 жыл бұрын

This needs to go viral, props to the very entertaining intro lol, thanks for including the bathroom I was wondering cause I wouldn't want to have a meeting and the bathroom was my private bathroom lol

@g.pearson4726 Жыл бұрын

I'm subbing ‼‼‼ You're great at what you do‼‼‼ I'm not an accountant but I have a love for telling people what their deductions are 🥰 My mother owns multiple businesses and her accountant doesn't give her the best deductions I'll send her your video. Thank you for sharing

@rudene75 2 жыл бұрын

Great information on home business taxes. Thank you for the valuable information.

@investingforbeginnerscommunity 2 жыл бұрын

I was wondering about this exact thing the other day. So I KZfaqd it and found this. Thanks for sharing.

@SimonOsamoh Жыл бұрын

Man this is good stuff, keep up the good work Bro!

@featuredsuccess Жыл бұрын

This is dope! I'm currently on a mission to start a family LLC, and i wanted to start to prep for any TAX advantage strategy. which does and will include a HOME OFFICE.

@sharikennybrew958 Жыл бұрын

You are truly a blessing ❤. I learned sooo much

@jcastillo3784 Жыл бұрын

Awesome stuff man ! New business owner here so this helped alloooott Thank you so much !

@jerryharvey6654 2 жыл бұрын

LOVE IT LOVE IT LOVE IT

@esthering1000 Жыл бұрын

It has been a blessing. Thanks sooooo much.

@Mskovergal Жыл бұрын

Great video. I was at the point thinking how do I do this! I know there’s a way but who do I ask and this video was spot on. Thanks!

@miltonfisher9122 2 жыл бұрын

I love this channel. Exactly how the wealthy stay wealthy

@stephenboulding5485 Жыл бұрын

im from the uk karlton you are a good teacher sir all the best stephen

@momanddaughtercookingchann9391 Жыл бұрын

You really are a genius!! Thanks for this!

@flynig1 Жыл бұрын

You killed this! Thanks 🙏

@Networkprofessor 4 ай бұрын

Just what I needed! Thanks

@QueenTappan 8 ай бұрын

happy I found this page definitely going through your team to create my LLC & learn how to file my taxes thank you!!

@themexperience3608 2 жыл бұрын

Love it the knowledge is reallll

@workerbee351 Жыл бұрын

Wow this is awesome information! Thank you!!

@lindaoliver5904 2 жыл бұрын

Great information

@riyadblue20 2 жыл бұрын

Thank you !

@lisajackson3743 Жыл бұрын

Lol that intro. Appreciate the way you break down complex tax information

@jessy2888 7 ай бұрын

Omg this is amazing! You are amazing!!! Thank youuuuuuju ❤

@terryredmond4161 Жыл бұрын

Thank you for this great information. Hold your accountants accountable.

@champjohnson8614 2 жыл бұрын

My brother u are the man. Looking forward to my conference call tomorrow with your company

@omarnieves3237 Жыл бұрын

wow!!!!!!!! i like your information brother

@kasiwilliams5927 2 жыл бұрын

Karlton absolutely amazing content you’ve provided. IRS publication 587 mentions free standing structures. What if my garage is attached to house and exclusively use for my business vehicle can I include sq ft as an additional deduction?

@SelfImageStylist Жыл бұрын

You had me at the 'headscratcher" - extra pantry space? broom closet? So many possibilities....

@hazeltravick5124 Жыл бұрын

🙏 Thanks God for you Karlton. 👍 This is blowing my mind. This is just what we need. You are so sent 📤 by God.

@user-yn6vx9qf9y 2 жыл бұрын

love the music You are awesome thanks for all the knowledge and as well your CPA's don't tell you anything about this

@GenVNight 5 ай бұрын

LOVE THIS.

@JoeDoe1 Жыл бұрын

Thank you.

@onilpotris Жыл бұрын

I loved the video! Can you show what would be done with home depreciation?

@RainSkyPainting Жыл бұрын

Karlton is giving us 💎 gems. I hope y’all paying extra attention bc Karlton ain’t about to lose or give an extra dollar to the IRS.

@ParisRathel Жыл бұрын

THANK YOU!

@Growportunity 6 ай бұрын

This is amazing information! Thank you!

@colbystrickland Жыл бұрын

So the simplified tax deduction of $1,500 can only be utilized once, per year? Not $1,500 a month? I've been following you now, Karlton, and look forward to doing business with you in the near future. GOD bless my brother.

@dhowto3005 2 жыл бұрын

Thanks.

@kevinhuynh6392 2 жыл бұрын

You funny Karlton but I love learning from you.

@Kakarbajoinsthefight Жыл бұрын

Awesome!

@muddstir 2 жыл бұрын

Great video, but how about including a garage that you work out of too?

@stevendeslandes2961 Жыл бұрын

GreatJob!

@holathleteacademy3510 2 жыл бұрын

Great video. Question, can you include the bathroom you use, even if it isn’t connected to the room?

@TB-fk4qm 2 жыл бұрын

Love this intro 🤣🤣🥰🥰

@briancook1 Жыл бұрын

Yes it counts

@michigan_616 Жыл бұрын

What's the best way to document your home office? Additionally, do you write a contract to sub-let the area to the business?

@c.j.herrera27 Жыл бұрын

Awesome.

@btdub5 Жыл бұрын

U Tha MAN 🧐🙏

@cjhsuliman13 Жыл бұрын

Great info shared here thanks. How about below grade (basement) or R&D garage spaces that are not all included in the above grade square footage.

@angelahj 2 жыл бұрын

If you've used the simplified method before, can you change to the other method in a layer filing?

@erikmoreno1237 Жыл бұрын

Great video !! Maybe I missed something but can you claim depreciation on your primary house ? I though you could only do that for rentals ? Thanks

@groneass2006 Жыл бұрын

Here's a question for you Mr. Dennis, Am I still able to use the home office deduction in my rented apartment EVEN if I use a virtual office address for my business? I do conduct business from my home, which is a rented apartment.

@frenchyalicea649 2 жыл бұрын

Karlton I have a scenario that I dont think many if anyone has asked ya. What about "living in your business location?" As opposed to having (in this videos case) your business in your living space. Any real benefits? For example: no lease/rent to pay to live in yet have many expenses for upgrades that can be applied to the business process itself...all while living there.

@yuliyalikhosherst4040 6 ай бұрын

Thank you!!!! You have a great teaching style . With simplified method it is $1,500 PER YEAR max deduction, correct? Hope you can make one more awesome video about the mortgagee deductions- how calculate depreciation, how subtract mortgage interest etc. I lost sooo much money in previous years since the professional TAX preparation specialist didn't mention me this expense.

@clara7920 Жыл бұрын

Yes I just became a 1099 worker who works from home

@lnkinc6823 2 жыл бұрын

Great editing (another business for sure * Creative director :) ) and as always very educational..... Much appreciated. One question on 20:44 with Taxes when Itemizing can we take it both on the the Sch A and then also on the home office deduction as well or only can we only take the deduction in one area? Thank you

@karltondennis 2 жыл бұрын

Both!

@lnkinc6823 2 жыл бұрын

@@karltondennis would that be allowed as it would be double dipping right? thanks

@karanjeetsingh6599 2 жыл бұрын

Did you include the 18% of utility expenses for regular deductions in the video?

@vicentelil3290 Жыл бұрын

can somebody help me understand the last part of this……. only $2626 in savings? why do you take the 8k number and divide it by the 32% tax bracket….. why is that necessary? where do i go to learn about this because the ‘deduction’ was 8k but the ‘saving’ is 2.5k

@ellabayarea Жыл бұрын

I felt like he made a mistake here. I think it would be 8.6k - 2.5k = 6k in tax savings. Because you don’t get 32% of savings, but the remaining 68%. Could be wrong though. Still looking for an explanation.

@pabawathieperera9118 Жыл бұрын

Mr . Carlton Would you tell if there is no washroom particularly to the office ( available is a sharing one at home). Does it still count as home office deductible? Very good lesson. Thank you so much

@willaribraheem4140 Жыл бұрын

TY! 😊❤️✨🙌🏾🙏🏾🙌🏾✨

@fernandoq.2916 Жыл бұрын

Thanks for the great video. One question... If I have a roommate, do I deduct the whole rent or just what I pay for rent/expenses?

@adesa1 Жыл бұрын

Can you explain the deduction if you have a mortgage and rental unit? We need another example for those with multi families

@blackpearls619 5 ай бұрын

This is amazing awesomeness!! You saved me from procrastinating doing my taxes. This is so fire! I am a new 1st owner occupied - landlord/property manager. How do I take deductions for shared household cleaning items?

@biankegadsden9110 2 жыл бұрын

Question? Can you claim this deduction if you use your home office as a 1099 contractor?

@irchrismm Жыл бұрын

So, I have seen something about renting the room for your office to your LLC as opposed to a home office deduction. How would that work?

@trapseasonfla6370 2 жыл бұрын

Nice

@charliebrown_handyman Жыл бұрын

Hey Karlton, What about my situation where I am a handyman contract I use my whole cellar as a storage for my tools and materials?

@semcaj 7 ай бұрын

Great video, but it raises a question. I have a detached garage. There’s a room in the garage that I’d ideally like to use for my office space. Does this scenario work with the regular method? If so, how would I calculate that space since it’s separate from the actual home? Thanks for your videos!

@zanebischoffrn6356 2 жыл бұрын

So if bathroom is used by other people does it still meet the exclusivity test? Same with closet, what if you have a few non business items in there too?

@jdstarek 2 жыл бұрын

28% on rent, utilities, internet… glad I made my living room my office.

@terry3728 2 жыл бұрын

👍gave you a like on this informative vlog...thx man

@superglen99 Жыл бұрын

I do be doing business while doing my business in the bathroom lol.

@clewis266 Жыл бұрын

What about if you own a second home that's empty and being used exclusively for a mental health office? Can you use the entire home for the regular home office deduction? We also had the home rezoned as a home business in our county.

@coreys.4778 Жыл бұрын

What if I have to walk from my house through a storm room, through the garage and then my office is in a room off the garage. But it's all under the same roof. If doors are opened I can throw a good paper plane from the house to the garage.

@dresbmf219 3 ай бұрын

Maybe it's a utility closet. Broom mop cleaning supplies.

@prettybrwneyez7757 Ай бұрын

It is

@povertypowerranger3684 2 жыл бұрын

On the website of your apartment , it should have the metrics for your exact apartment

@SoManyChildren Жыл бұрын

Your awesome

@nanayaa-ansah Жыл бұрын

does the walkway have to be exclusive to home office? (what if it's an entryway?) can you take a deduction on your home office for several businesses?

@KB-ok5ob Жыл бұрын

LOVE this video. Question.... what if my "home business" is being a landlord and renting out a portion of a home that i am taking a mortgage out on. I will be living in the home and renting out a portion of the home to my family members. 3 out of 4 bedrooms are rented to my tenants 1 out of the two bathrooms are rented to my tenants. Closet and hallway will be dedicated space. Can i deduct the bathroom that is not being used by my tenants as part of my home office? Say i use that bathroom only during my business hours & i don't let my tenants use that bathroom for their personal use & i also dont use that bathroom for personal use either... Would that be OK?