I have a few clients that actually give me the odometer reading at the end of the year. Most just use the triple zero approach. I drove 15,000 miles last year. While I trust that happened but exactly that many miles. That number is only good for that one mile. You sure it wasn’t 15,232. Triple 0 just looks suspicious. I’ve seen audits on using too many triple 000 on tax returns in various places. Thanks as always for your videos. Spot on awesome.
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So if I wanted a $48,000 car, and I wanted to say I used it for business 70% of the time, I would just have to make sure that 7,000 out of ever 10,000 miles is recorded as business related, and that is 70% of the cars cost deducted up-front? What would I need to substantiate those claims? Also, if it is an electric car that gives me $7,500 in tax breaks, do I have to factor those into the overall car cost when deducting initially, or is that treated separately? Thanks for the video :)
Hello, great questions. 1. You generally cannot deduct the entire cost of the car in the first year unless it is a specific type of large vehicle. However, it is possible to generally deduct up to $11,000* in the first year assuming the car is not a luxury vehicle. 2. To substantiate the claims you would need to track your total miles (Business and personal) have written records, and also your receipts for the vehicle purchases, fuel, repairs, oil changes, etc. 3. There are still some electric vehicle credits available, but the $7,500 I believe was for a Telsa which I do not believe is available for tax year 2022 if I'm not mistaken. Hope that helps. Thanks!
what if i purchase modifications for my car for my youtube channel that is a registered LLC? those modifications are solely for creating content so they are a business expense right?
Can I switch back and forth between the mileage rate and actual expenses so long as I use the mileage rate the first year? The IRS website said the standard mileage rate cannot be revoked, so I guess not
If you are purchasing a used ev car, does the price have to be under 25,000 before taxes and title or does that all have to add up to less than 25,000. I am looking at a vehicle and it gets very close to the limit, the dealership offers an extended warranty but that warranty would put it over 25,000.. would that disqualify me from the credit?
Chapters (Time Stamps): 0:00 Introduction 0:53 Car Expenses 2:13 Vehicle tax deduction rules 3:15 Why tracking mileage is important 4:09 Which is better standard mileage or actual expenses? 4:47 Can I deduct my car payment 5:15 Writing off the cost of your car (full example)
What vehicle are you currently using for business and do you find you get more the standard mileage deduction or from taking actual expenses and depreciation?
Everything that you said you can use and utilize for tax breaks and deductions on your vechlies my income tax personal said they don't allow that anymore so either their lying or lazy and actually more then likely a combination of the 2 😡
Hey White Viper, you can absolutely take these deductions as long as you operate as a business owner or independent contractor. Whoever told you this has no idea what they are talking about or care so little about your tax return they would rather not hassle with it. I would find a new accountant. If they are ignoring this deduction what else are they ignoring with your taxes?
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
I have a few clients that actually give me the odometer reading at the end of the year. Most just use the triple zero approach. I drove 15,000 miles last year. While I trust that happened but exactly that many miles. That number is only good for that one mile. You sure it wasn’t 15,232. Triple 0 just looks suspicious. I’ve seen audits on using too many triple 000 on tax returns in various places.
Thanks as always for your videos. Spot on awesome.
Totally agree Dan, the 000 is the fastest way trigger an audit. Even amounts are also great for locating fraud ;)
📼 Checkout some of our most popular INVESTING and TAX related videos
✅ Earn $100,000 a year in dividends: ruclips.net/video/DWu3oU6dcBs/видео.html
✅ Dividend Investing Pros and Cons: ruclips.net/video/3gmbrO_PUt8/видео.html
✅ Our Dividend Income Year 6: ruclips.net/video/ppwnTGWNcUY/видео.html
✅ Best Investments for each account ruclips.net/video/WjlOmA-xWAU/видео.html
✅ Calculating dividend tax rates: ruclips.net/video/ldZaDdmcWtg/видео.html
✅ Making your dividends qualified!: ruclips.net/video/YmYcxDLzXyY/видео.html
✅ How to save taxes on stocks: ruclips.net/video/_gaJ6jXgGb4/видео.html
✅ Capital Gain Taxes Explained: ruclips.net/video/BCQYorPgDKs/видео.html
✅ New Tax Laws for 2020 Explained: ruclips.net/video/ewhbBCRvIO0/видео.html
✅ Dividend and REIT Taxation: ruclips.net/video/Y0OxeCS3_H4/видео.html
✅ How to fill out the new 2020 W-4 ruclips.net/video/_VPjX0dDTgs/видео.html
So if I wanted a $48,000 car, and I wanted to say I used it for business 70% of the time, I would just have to make sure that 7,000 out of ever 10,000 miles is recorded as business related, and that is 70% of the cars cost deducted up-front? What would I need to substantiate those claims? Also, if it is an electric car that gives me $7,500 in tax breaks, do I have to factor those into the overall car cost when deducting initially, or is that treated separately? Thanks for the video :)
Hello, great questions.
1. You generally cannot deduct the entire cost of the car in the first year unless it is a specific type of large vehicle. However, it is possible to generally deduct up to $11,000* in the first year assuming the car is not a luxury vehicle.
2. To substantiate the claims you would need to track your total miles (Business and personal) have written records, and also your receipts for the vehicle purchases, fuel, repairs, oil changes, etc.
3. There are still some electric vehicle credits available, but the $7,500 I believe was for a Telsa which I do not believe is available for tax year 2022 if I'm not mistaken.
Hope that helps. Thanks!
A lot of things l didn’t know thanks!
My pleasure and I only scratched the surface.
what if i purchase modifications for my car for my youtube channel that is a registered LLC? those modifications are solely for creating content so they are a business expense right?
Can I switch back and forth between the mileage rate and actual expenses so long as I use the mileage rate the first year? The IRS website said the standard mileage rate cannot be revoked, so I guess not
If you are purchasing a used ev car, does the price have to be under 25,000 before taxes and title or does that all have to add up to less than 25,000. I am looking at a vehicle and it gets very close to the limit, the dealership offers an extended warranty but that warranty would put it over 25,000.. would that disqualify me from the credit?
Chapters (Time Stamps):
0:00 Introduction
0:53 Car Expenses
2:13 Vehicle tax deduction rules
3:15 Why tracking mileage is important
4:09 Which is better standard mileage or actual expenses?
4:47 Can I deduct my car payment
5:15 Writing off the cost of your car (full example)
Thanks!
What vehicle are you currently using for business and do you find you get more the standard mileage deduction or from taking actual expenses and depreciation?
Bravo muchacho you speak Spanish
A very small amount of Spanish haha. Actually looking into buying a course to help me.
Excise
Everything that you said you can use and utilize for tax breaks and deductions on your vechlies my income tax personal said they don't allow that anymore so either their lying or lazy and actually more then likely a combination of the 2 😡
Hey White Viper, you can absolutely take these deductions as long as you operate as a business owner or independent contractor. Whoever told you this has no idea what they are talking about or care so little about your tax return they would rather not hassle with it. I would find a new accountant. If they are ignoring this deduction what else are they ignoring with your taxes?