This form of learning should be taught early in High school. To have an Entrepreneur mindset is vital component in achieving success. Great Job!

Thanks Karlton ! Quick update for Jan 2023 . The IRS have increased the standard mileage rates from 62.5 to 65.5 cents per a mile.

I have to say that while this video has very good information concerning the vehicle deduction for your business on your tax return, there are a couple of items I would like to add. First, car payments are not an actual expense if you are purchasing the vehicle. However, the interest on those payments is. The flip side to this is if you're leasing the vehicle, then the whole payment is part of actual expenses. Secondly, if taking standard mileage deduction, depreciation is built into the mileage rate, meaning you cannot calculate depreciation separately. Mr. Dennis is correct, however, in stating that depreciation calculations are or should be built into the tax software you use. Thirdly, parking, tolls, interest only on vehicle purchases, and state/local property taxes are also all expenses that can be taken in addition to standard mileage deduction. They are also separate expenses for the actual expense deduction, if that method is chosen. But, as Mr. Dennis pointed out very clearly, you do have to choose which method is going to be most beneficial to you, and consulting your tax accountant or CPA is good advice in making that decision.

@TonyStark-sj3kl

2 ай бұрын

Where are u located? I'll stop by your office as well! Thank u for the added intel. ( i def feel, he's just not putting everything out, for purpose of levels) cmon , cant knock the provider for not showing all the tricks to the trade. I repect his levels of access to more i depth details. Its still very simple even for a boxer to understand. Appreciate all the added input concerning.

You’re videos have helped me so much in getting business up and running. Great stuff.

Thanks for the help! I just started a business and I have been kicking around purchasing a new car for this and your breakdown is nothing short of amazing and easy to understand. Thanks Karlton and I look forward to learning more form your channel!

Your help is greatly appreciated. There is a wealth of information in your videos and they are well put together and thought out. Thank you

KD you the real MVP for this bro! I just started a fitness business and I use my truck to drive to clients over 50% of the time! keep these videos coming bro!!

You’re the man, I look forward to working with you. Thank you for all the information. I just created my LLC and received my EIN number.

Great information! My accountant had me totally confused with the information of car deductions. You explained it clearly. Thank you. Keep up the good work.

I recently created my own LLC. I am in very active in my business and do my own bookkeeping. I am learning about taxes and what I can deduct and how. This was very informative.

I am not the type of person that comments in videos, but I will do it this time. The information was valuable and you just won a new subscriber, I am here taking notes and I hope I can take the best decisions to open my first LLC. Thank you Karlton.

Thanks Karlton, I learned a lot here and the bonus tip at the end to track both mileage and usage was very helpful. I feel like I have a better understanding of this now.

As an accountant, not a tax accountant, you did an amazing job of breaking this down!! New subbie here❤

This was incredibly informative. I can’t believe I didn’t know this before now. Will be applying this information moving forward. Subscribed with appreciation.

Great video! Thank you for researching and putting together this compare/contrast. This is what I needed.

This is truly a great video. Most tax guys have no clue how to simplify stuff down for the everyday person who isn’t studying the tax code all day, but you my friend do every time. Appreciate your content!

@BrianKrahmer

Жыл бұрын

my experience in dealing with "professionals" like lawyers and accountants says that most would have no interest in helping you eliminate them!

@blackangel181588

Жыл бұрын

I love this channel ❤❤❤ I hope there is a class where you coach up and coming tax preparers

Karlton… you’re the best tax support on KZread… hands down. Thank you 🤝

This was totally on point.. I've been doing both sides of Accounting for over 10+ years and you are totally right. Plus I do UberEats and file my own taxes with TurboTax. What you had just explained in this video took me about an hr of re-reading that IRS Lines and understanding that, "OMG.. IRS is really letting us CHOOSE 1 of the 2". I'm very happy that I came across this video as it solidfied that I wasn't the only one thinking the samething too. LOLOL... Subscribed and can't wait hook up with you soon on your courses.

You’re one intelligent young man.I am proud of you.Thank you for your great educational videos.

Thank you so much Karlton for these informative videos always

Great video. I really appreciate everything said in it. Thank you so much. 🙏🏾🙏🏾

You mentioned “car payments” but my understanding is that only interest is deductible and the principal is not. The value of the vehicle is deducted with depreciation expense and that is why “car payment” is not deductible (only interest).

@OtisHumphreys

Жыл бұрын

This guy is a hack. I only can assume he worked an H&R Block one year and now thanks he is a pro.

@themanifestorsmind

Жыл бұрын

Exactly. Because to the business, the car is an asset and the loan is a liability. They go on the balance sheet, not the income statement lmfao. Any "accountant" should know this!

@nysteelhorse

4 ай бұрын

It's only the interest portion of the payment for a purchase, because the depreciation accounts for the principal. Under a lease is the full amount as you are paying for the use of the vehicle, not ownership. An expense.

Thank you for consistent good content that is easy to absorb and retain for us people who have to listen a few times and take extra notes. The detail you provide is great and its detail like being in class and then like examples. Thank you again.

Im a Mobile Detailer. I pull my trailer with my personal truck everyday. I bought the truck out right. Im trying to figure this all out ... Thanks again for all u do to help us !! Aloha

@davidkasparian3813

Жыл бұрын

Same bro I’m a detailer too just getting started I’m trying to figure out how to log my car 😂

Man, I love your clear information!

Your information and channel has simplified my understanding of my LLC

Great video my Man. You made it simply as all out doors. Keep on doing what you do bro

This was a very informative and helpful video I have I'm dealing with the same questions as I purchased a vehicle in my bit in my personal name and I have been using it for business purposes ever since

This was a really helpful video. Although you didn’t say much about using the vehicle for more than 50% of the business and the IRS expecting you buy commercial auto insurance. This is something I am not very clear on.

Just….thank you. Seriously. Also shared the vid with two other people

Best content on KZread man

Thank you for your simplicity in breaking down the Tax Code.. it is very helpful and appreciated😊❤

Setting up my business now. It will be 100% equipment dependent. Thank you for this video, it clarified a lot for me. I am trying to wrap my head around depreciation schedules and such.

@karltondennis

Жыл бұрын

Glad it helped! Look forward to seeing you in my event that kicks off Monday. www.thetaxfreewealthchallenge.com/join-thechallenge

@rubenmv91

Жыл бұрын

​​@@karltondennisI Karlton what if chose actual instead of mileage and I keep the vehicle after the 5 year depreciation. and i decide to buy another brand new vehicle to have another 5 year depreciation on the new car can I still writing expenses from my old car and also expenses and depreciationon the new one??

You broke it down beautifully. Thank you

Thank you so much I just subscribed to your channel. Thank you for looking out for us wanting to do it right ! Stay blessed!

OMG - how do I like this video more than the like button? That was an amazing explanation of how this work!

Man, your videos are so easy to understand, as a brand new LLC holder I really appreciate it. Thank you!

Another FANTASTIC and informative video! Thank you!

Thank you so much for your shared wisdom

Absolute kudos you always give the best advice and the way you articulate it is so comprehendible...phenomenal is probably the only word that can describe your lessons...Great speaker🏆

Good information, as a new businesss owner I needed this ...thank you

Excellent information. Thank you!

You are brilliant. Thank you for sharing this. You make learning the content easy and enjoyable.

Very well explained even for someone like me who is not English fluently, thank you for your awesome video !

I did this with my Chevy avalanche.. The sherrif was so upset when he couldn't tax me for the tickets on the LLC vehicle lmao.. I sold it in the long run and took no losses.

@abegetsbuckwild

Ай бұрын

Wait what? they can't ticket you?

@ColinoDeani

Ай бұрын

@@abegetsbuckwild They can.. but it doesn't go on YOUR ownership history.. it goes on the LLC's company vehicle history & EIN.. The sherriff called me in his frustration & I was like I will let the Operations Director know lol Plot twist: * I Am the operations Director *🤣🤣🤣

Fantastic video, Karlton! Thanks for sharing! 👏🏿👏🏿👏🏿👏🏿

Excellent work, Mr. Dennis. My only thought (as a small business owner and not a tax guru) is that the owner needs to look at the insurance side of things as well. For example, my homeowners/auto insurance company will not insure a corporate vehicle (that is, a vehicle in the name of the company.) When I looked for vehicle insurance under the corporate name, the rates I was quoted far exceeded any advantage that I may have gotten by simply using a personal vehicle for business and using the mileage method.

@jayskee7312

Жыл бұрын

You just gave me some insight

@marketbuy

Жыл бұрын

My insurance with Costco Connect allows you to use your business name on the title as long as you meet their pre qualifications. The cost difference between personal and company insurance was about $50 for 6 months coverage.

@timothydover521

Жыл бұрын

It’s a depreciating asset and there’s a wealth of write off for that

@takodashabbael8794

Жыл бұрын

Keep automobile in your name lease it to your company and charge your company first insurance and payment

@jaykoval5957

Жыл бұрын

@@takodashabbael8794 Hmmmmmmm.

Thank-you so much for #THIS breakdown, Mr. #KarltonDennis!! 🤝

Good insight! Thanks for educating me

Excellent information, I highly recommend your channel. Great video!

Great info bro I'm learning from you thanks 👍🏾

Thank you. This was very helpful

You can use the either the standard mileage or actual expenses method for a leased vehicle. However, if you use the standard mileage rate, you cannot switch to the actual expense method in a later year. If you use the standard mileage rate for a leased vehicle, the lease payment amount is not deductible. If you use the actual expenses method, leased vehicles are not depreciated. Instead, the business portion of the lease payment is deducted

@aboulding

4 ай бұрын

So it's more advantageous to use the actual expenses method for a leased vehicle so you get half of the payment deducted in addition to all the other operating expenses? No depreciation available since you're leasing and not keeping the vehicle?

Algorithm doing its magic I wanted to know the answer to this question and you came through. Thanks for the precise information broken down into Golden nuggets.

Awesome words thanks Karlton

bro your a savage. thank you. this is the knowledge we need

Thank You for your Knowledge and Information, you made it make sense for me to fully understand, I took some amazing notes…!!! Stay Blessed…!!!

What an amazing video. Thank you!

Greatest Tax video on the web, please continue

Excellent information and presentation. Thanks for sharing.

This video was coincidental. I wondered if I can deduct my car insurance, gas, and repairs in addition to mileage.

Great video, always helpful for new LLC owner, starting a non-emergency medical transportation business..

Great and informative videos as always, Karlton; thank you!

GREAT INFO!

You are the best! Thank you.

We appreciate you!!

Thank you!

Very informative!

Great information.

Good an Useful in information, bro.

Great info thanks.

Excellent video man

Great stuff!!!

Well spoke. 👍

Thank you 😊

Thank you for sharing that! 👏👏👏an excelent channel 👍👍👍

Thank you! I'm just starting my llc journey and your videos have been a great help. Big question here is EVs. I have a Tesla. I obviously dont use gas, but could I add in my electricity into the list of actual expenses?

Thanks!

Starting a Courier business great info.

great video thank you!

How do you write off the entire car in the first year like you mentioned. Can you please make a video on it for us.

very informative video

Ur the best tax man on the planet hands down

Great video. However, I feel a correction is needed (based on my understanding) with regards to deduction of car payments AND depreciation. If you lease your car, you cannot deduct depreciation because you don't own your car. If you own your car, you can deduct depreciation BUT you cannot deduct the 'car note' payments - except for the interest paid on the car loan for that year. Again, thanks for your videos.🙏🏽

@dailyrant4068

8 ай бұрын

But you'd be depreciating against the lease payment so it works out like depreciation anyway

standard mileage includes depreciation

@babacarsdieng

Жыл бұрын

Yep. Not sure what he was talking about depreciation on top of standard/actual deduction

Great Video !

amazing information

Thank You so much!

Thanks man you taught me so much in this video I need to hire you

Great video, I purchase a mustang then when I got my LLC I purchase a mustang Shelby Ferrari and Mustang Gt I put it all under my LLC and gain more money 💰 after tax return

This guy really on his info much appreciated 👏 will be using you guys.

wow this video was amazing thanks so much

Great content

Great Job

Can you do a video on Trucking Company write-offs? mostly for truck drivers. Thank you

What about the pros & cons of leasing a vehicle for a business???

The paying taxes on the sell of the car depreciation if u sell it is greatttttt content

This guy is amazing 🙌✊

thank you for the channel

All the information I need before turning my Uber Driver account to LLC. Wow! So informative and very well explained. 👍🏼👍🏼👍🏼

@ciscolicious87_32

5 ай бұрын

Im thinking of doing the same. How is it going for you?

@miner4life628

5 ай бұрын

@@ciscolicious87_32 working on getting my business bank checking and savings account set up right now before switching my tax info on Uber