This advice is “low key” how the rich stay rich and protect their assets. Working class people think their car is an asset. They dont understand depreciation. Youre doing Great work. Much appreciated 💯
Great video, one note is when you "sell" your personal vehicle to your LLC it is a taxable event for you personally if the LLC is paying money for the vehicle, minor note but worth putting out there.
Thank you I recently found out that I can’t put catering signs on my van because the insurance is personal vehicle insurance NOW I’m well informed as to what steps I need to take
Navy Fed requires that you must be in business for at least one year. The minimum value of the car to purchase must be $53k and you must put down 25% down.
I love your voice! I see your mom videos all the time. She said she was your mother abd she sell tax ahd budiness info just like you do. So i asked her "r u related to karlton dennis?" She said "yes, thats my son!" How cute n thanks for your wonderful brain!
I have a hack for the dmv lol I recommend arriving at the DMV five minutes before closing. I assure you that you won't wait more than 20 minutes there because there are fewer people and the workers are eager for everyone to leave so they can go home.
Make a video about how to start an LLC as a stock/forex/crypto trader if you planning on doing it full time or if you still got a 9-5 and trading on the side. Also how the IRS classifies trading and investing into shares different for people who do both. Also about tax write offs for the business. Thank You 🙏
Can you do a video on what is the best way to deduct a vehicle purchase in 2024? Bonus depreciation is only 60% in 2024, does it make more sense to purchase the vehicle in one LLC and lease to a 2nd LLC to write off the lease?
Thank you thank you thank you You’re Awesome…I’ve been wanting to know how to put a vehicle under a business… Thanks for explaining the process in such a user friendly way 😊👏🏽👏🏽👏🏽👏🏽
Perfect timing! I know this was a month ago, but this question has been on my mind relentlessly. I just purchased my first company vehicle and I have no clue how to transfer it into my l l c
Thank you for yet another great video! I was previously told that a business owner (specifically an LLC) could just add their personal vehicle to their Operating Agreement as a contribution rather than changing to the title and such into the business's name. Can you give me your professional opinion on that please?
Excellent Video, can you do one for why you may not want to put a vehicle in an LLC? A few things come to mind, some central appraisal districts charge a tax on BPP (Business Personal Property) and then income inclusion for a taxable fringe benefit for personal usage and the complexities that come along with that. There are probably others but that is all I could think of off the top of my head.
This creates a taxable event called sales tax and I haven’t seen a lender that will allow that because they charge a higher interest rate for corp vehicles. This only works when purchasing otherwise it makes no economical sense.
Do you have a CPA that you can refer? I have been watching your videos lately, and they are pure gold! I brought your ideas and strategies to my CPA and it is way over his head.
You totally overlooked the tax implications involved. Paying taxes on 30k on the personal side then to write a p&s for 30k to transfer it to the llc to get a write off, implies paying state sales tax twice.
To protect your assets? Well, if you transfer your personal vehicle to your LLC, it's now LLC property, and you could lose the vehicle, if something happens to your LLC.... Might be something to keep in mind. Of course, if you sold the vehicle to your LLC, for a really good price, it might still be a good idea.
I agree with your points. Poor citizens are hurting. The greedy people wanted to own everything even if paid vehicle in full they wanted to legally transferred . What a shame? They used legally system to steal and scam people. Sadly, corrupt politicians and wealthy people control people life.
Thank you for what you do. I used a Truck for 100% Business. The truck is in my name, not under the business name. I understand Actual vs. mileage. Can I claim the Depreciation over 5 years even if the Truck is NOT under the LLC name? PLUS, the actual or mileage, whichever one benefits me the most?
Great video. Thank you for the information. I have a question. I have taken over a vehicle from my father and its free and clear and no leans. Should I transfer the car under my name 1st before transferring it under my LLC or directly to my LLC?
I personally am only interested in the deduction that come with using my vehicle for work .. I’m not interested in going through the process of transferring it to my LLC especially since I don’t own it out right yet. Do you have a video for business vehicles deductions not owned under the LLC ??
I'm an owner of 3 moderate sized businesses but I'm definitely not an expert. Based on my personal experience over the past 14 years, I'd say the best way to simply accomplish that is to just save receipts for tax right offs. Ie. Gas, car repairs and maintenance, tolls, mileage, etc. As long as it pertains to BUSINESS use you're good.
In many cases this creates more expenses then it saves. Example if you put the vehicle in a S corp and you also use it for commuting or personal miles then you have to pay taxes on that personal usage. Commercial car insurance is usually higher then personal. You have to pay sales tax on the title transfer. Unless the vehicle is 100% business and you have other employees using it, this doesn't make much sense.
Great Vid: When buying a vehicle cash and then registering it under LLC, does the Insurance company require an actual licensed driver to get the initial coverage? Or is it simply insured to LLC then any driver {employee) would then be added to the coverage after?
Love your content. Thanks for sharing. Question. If my LLC purchased and owns a vehicle and does a 100% deduction that year, who pays the loan on the vehicle? If the company pays the loan payments, what account is it considered? An expense? Or Other Liability? Or equity in QuickBooks? Thanks
Why people think it’s sooo hard to put your car in your LLC. For the folks that kinda don’t know, you do. Same way you put your car in your name, is the same way put your car in your LLC. Not sure on all states, but mostly go to a notary, transfer the title over. Provide proof of insurance boom, your done.
In Texas, we would need to pay an annual property tax based on the value of the car if its a business asset. No tax on it as a personal asset. That's a deal breaker here.
This bad ideal most of the time for normal passenger vehicles that are used for both personal and business use, there is no decreased liability protection b/c guess what your LLC is not gonna be driving it when u get in accident it will be a person (you as the driver) and now they will go after the driver personally and the owner which is the LLC. Put the car in a Personal Vehicle Trust for some better liability protection without risking your operating LLC assets.
Good video!!! I have a question, If I buy a vehicle in Copart using my LLC do I have to pay taxes for it?? or I need to fill up a Sales Tax Certificate of Exemption??
I'm a taxi driver and I need to buy a newer car because the one I have is getting old, do you think I will get a tax deductible if I use my llc to buy the newer car like 2020 to 2022 but I will buy the car with cash. No financing. Thanks for this video. 🙂
Hi Karlton, I have a classic pickup truck I bought in my name. I'm considering transferring it to my newly formed Construction LLC, for business use, but the truck needs work. If I transferred it to my LLC, could I write off the vehicle's engine replacement and/or restoration as maintenance of the truck to make it presentable for business use?
I have a curveball.. I am currently a sole proprietor and use my truck for my business. It's a spare vehicle I use for camping but otherwise sits. I create products that sell well for it. However this is a $680/month payment that I'd like to depreciate for tax benefits. The vehicle sits parked. I use it to design and create products for that platform. Zero mileage benefits for me in this case as it sits for months at a time. Currently truck is 3 years old, 25k miles. About 20k are pulling our camper for personal use over the last 35 months. Everywhere I've looked is based on mileage. But haven't found anything about actually buying a vehicle for business use. Thoughts?
I'm not an expert but I believe that you should actually be using it for business purposes to be able to benefit from any claims or tax write offs. I could be wrong, maybe there's a loop hole somewhere but I doubt the governments just gonna take people's words for it and let a vehicle just sit and be written off somehow, no matter how small. 🤔
@@beanz6795 that's the pickle I'm in. I have designed 8 products based off of it and don't think I'd have it if it wasn't a popular vehicle with needy products. My thought is look at automotive accessory makers. They buy a vehicle for R&D and product development. Not driving it anywhere other than fuel or test runs but otherwise they just making products like aftermarket bumpers, headache racks and so on.
Wow sorry I did not see this video befor....I have sale my truck under my name to my business also under my name ( a sole proprietary LLC ) I have put the minimum amount $200 since I already paid for my vehicle in full and make the sale. 3 weeks later I get letter from sales tax division of PA stating that I have to pay over $2200 on sales tax on grounsd that my vehicle is worth $29000 . I hope other people see this video befor they make my mistake..Any way I can get out of paying the sales tax ???
I don't have a LLC yet!But if I do Will my insurance payments get lower.Also if get a LLC can I put all the money I make into it and avoid Taxes or will there be a % of I will pay I live Illinois?please reply back.
Do I need to have my vehicle under a commercial insurance policy to transfer a title to my LLC for a car I just purchased. I live in Texas. I am hoping to just use my personal insurance.
I need help! I started a detailing business. I’ve seen previous were you said you shouldn’t start a LLC until you have 45K in income. Is this still true?
If I own a business out of state say Georgia but have a drivers license in another state say Florida can I register my car in my Georgia business name with Georgia plates ?
Doing this opens you up to liability. If you hit someone in that LLC vehicle, they take the vehicle AND what’s under the LLC. If you have another vehicle under it, they can sue to get that too. Plus the LLC bank account. I don’t recommend doing this.
Don’t forget to check out my ebook, _The Short-Term Rental Rule: How to Reduce Taxes Like the 1 Percent!_ ebook.taxalchemy.online/ebook
Link not working anymore.
This advice is “low key” how the rich stay rich and protect their assets. Working class people think their car is an asset. They dont understand depreciation.
Youre doing Great work. Much appreciated 💯
It’s like you sense people’s thoughts. Ur always spot on when a question pops up in my head. Thank you!
Great video, one note is when you "sell" your personal vehicle to your LLC it is a taxable event for you personally if the LLC is paying money for the vehicle, minor note but worth putting out there.
Thank you I recently found out that I can’t put catering signs on my van because the insurance is personal vehicle insurance NOW I’m well informed as to what steps I need to take
Navy Fed requires that you must be in business for at least one year. The minimum value of the car to purchase must be $53k and you must put down 25% down.
Good to know
Thanks 😊
What about if you already have an auto loan with Navy and you just want to transfer.
@@cylvaniaallen4498the car loan must be $40k or higher
@@cylvaniaallen4498have another bank buy it from Navy Fed and put it under your business name
Great advice, keep it up, looking forward to being a CPA
Sharing education is one of the greatest fulfillments!
I love your voice!
I see your mom videos all the time.
She said she was your mother abd she sell tax ahd budiness info just like you do.
So i asked her "r u related to karlton dennis?"
She said "yes, thats my son!"
How cute n thanks for your wonderful brain!
many of these voice are created using AI😢
@@sicilianocamiliano222 not his voice it’s actually his own voice as you can see
Clear, Concise, thanks for this Boss. Happy to have you creating content for us seeking this type of knowledge.
I have a hack for the dmv lol I recommend arriving at the DMV five minutes before closing. I assure you that you won't wait more than 20 minutes there because there are fewer people and the workers are eager for everyone to leave so they can go home.
Brilliant thank you so much, about to do this and didn’t have a clue. Appreciate you sharing !
Would you be able to do a video on how to properly structure a Turo car sharing business and the write offs you’ll be able to deduct? 🙏🏼
I’ve seen people get car dealer license then create an LLC to put all their cars in that LLC.
We were literally just talking about doing this when your video came up. So helpful. Please keep making these.
so clear; like that you state what questions to ask and things to check into ahead of time.
Make a video about how to start an LLC as a stock/forex/crypto trader if you planning on doing it full time or if you still got a 9-5 and trading on the side. Also how the IRS classifies trading and investing into shares different for people who do both. Also about tax write offs for the business. Thank You 🙏
You can search that
What about leasing a vehicle under your LLC?
That's straight forward
Can you do a video on what is the best way to deduct a vehicle purchase in 2024?
Bonus depreciation is only 60% in 2024, does it make more sense to purchase the vehicle in one LLC and lease to a 2nd LLC to write off the lease?
Can you pay him for his time since you requesting information?
You are the GOAT!!!!!!!!!
Good info but you will not get a title to your vehicle under your LLC if the loan is not paid off
He addresses this at 2:36 mark of video
Thank you thank you thank you
You’re Awesome…I’ve been wanting to know how to put a vehicle under a business…
Thanks for explaining the process in such a user friendly way 😊👏🏽👏🏽👏🏽👏🏽
I think it’s a great idea to place your vehicle under there LLC for all the reasons you just mentioned.
Carlton, can you do a video about airplane ownership and LLCs?
Can buying a plane to do flight training be deductible?
Perfect timing! I know this was a month ago, but this question has been on my mind relentlessly. I just purchased my first company vehicle and I have no clue how to transfer it into my l l c
Thank you for yet another great video! I was previously told that a business owner (specifically an LLC) could just add their personal vehicle to their Operating Agreement as a contribution rather than changing to the title and such into the business's name. Can you give me your professional opinion on that please?
Excellent Video, can you do one for why you may not want to put a vehicle in an LLC? A few things come to mind, some central appraisal districts charge a tax on BPP (Business Personal Property) and then income inclusion for a taxable fringe benefit for personal usage and the complexities that come along with that. There are probably others but that is all I could think of off the top of my head.
My CPA says it introduces risk to the rest of my business.
Thank you , soooooo much. Very very detailed. I love how you are precise and take us step❤ by step
Thanks for adding value!
This is absolutely wonderful information, great upload. I am so happy. It was a real person and not a stupid AI talking my POV.
This creates a taxable event called sales tax and I haven’t seen a lender that will allow that because they charge a higher interest rate for corp vehicles.
This only works when purchasing otherwise it makes no economical sense.
Do you have a CPA that you can refer? I have been watching your videos lately, and they are pure gold! I brought your ideas and strategies to my CPA and it is way over his head.
You totally overlooked the tax implications involved.
Paying taxes on 30k on the personal side then to write a p&s for 30k to transfer it to the llc to get a write off, implies paying state sales tax twice.
Can you do a video where if you are STILL PAYING on the vehicle ?
To protect your assets?
Well, if you transfer your personal vehicle to your LLC, it's now LLC property, and you could lose the vehicle, if something happens to your LLC....
Might be something to keep in mind. Of course, if you sold the vehicle to your LLC, for a really good price, it might still be a good idea.
I agree with your points. Poor citizens are hurting. The greedy people wanted to own everything even if paid vehicle in full they wanted to legally transferred . What a shame? They used legally system to steal and scam people. Sadly, corrupt politicians and wealthy people control people life.
Why would you lose the vehicle? Scared mindset!!!!
Good Educational Content
wowowona, impress, great information, will follow advise, will do so asap....keep up with these great information.......
How do you take out a loan through your newly made LLC to buy a vehicle?
Thank you for what you do.
I used a Truck for 100% Business. The truck is in my name, not under the business name. I understand Actual vs. mileage. Can I claim the Depreciation over 5 years even if the Truck is NOT under the LLC name? PLUS, the actual or mileage, whichever one benefits me the most?
Thank you for the insights 🙏 stay blessed
thank you - never knew this!
This protects you from police running your tag and initiating traffic stops if you had prior offenses and speed camera tickets.
I’m pre approved but just started my biz. How should I buy? In my name and transfer? Or put it in the biz name now?
Excellent information 💯
Great videos! I'm learning a lot.
Thank you for this.I have just started my l.L c and i'm trying to figure out how to get vehicles and insurance
Great video. Thank you for the information. I have a question. I have taken over a vehicle from my father and its free and clear and no leans. Should I transfer the car under my name 1st before transferring it under my LLC or directly to my LLC?
I personally am only interested in the deduction that come with using my vehicle for work .. I’m not interested in going through the process of transferring it to my LLC especially since I don’t own it out right yet. Do you have a video for business vehicles deductions not owned under the LLC ??
I'm an owner of 3 moderate sized businesses but I'm definitely not an expert. Based on my personal experience over the past 14 years, I'd say the best way to simply accomplish that is to just save receipts for tax right offs. Ie. Gas, car repairs and maintenance, tolls, mileage, etc. As long as it pertains to BUSINESS use you're good.
In many cases this creates more expenses then it saves. Example if you put the vehicle in a S corp and you also use it for commuting or personal miles then you have to pay taxes on that personal usage. Commercial car insurance is usually higher then personal. You have to pay sales tax on the title transfer. Unless the vehicle is 100% business and you have other employees using it, this doesn't make much sense.
Yup, agreed this is totally a dumb video not to mention that LLC assets are at risk as the owner of the vehicle if in any accident.
Great Vid: When buying a vehicle cash and then registering it under LLC, does the Insurance company require an actual licensed driver to get the initial coverage? Or is it simply insured to LLC then any driver {employee) would then be added to the coverage after?
That’s only if you register it!
Research: Register!
Thank you sir
Love your content. Thanks for sharing. Question. If my LLC purchased and owns a vehicle and does a 100% deduction that year, who pays the loan on the vehicle? If the company pays the loan payments, what account is it considered? An expense? Or Other Liability? Or equity in QuickBooks? Thanks
That’s the question I have, too.
Commercial insurance 4x higher
I would never do that. Putting your automobile under the LLC is not a good idea.
Great Video
Is insuring a vehicle under an LLC more cost effective then insuring it under your personal name?
Thank you!
Also, do you have any videos about the Tesla credit or any benefits to business owners who own a Tesla? Thanks!
Thanks! Great Video!
I think you can transfer Title Subject to the existing loan in place, right? It can be done through RE
If I do not want to transfer the vehicle to the LLC, but use it for business, what are the tax benefits?
Why people think it’s sooo hard to put your car in your LLC. For the folks that kinda don’t know, you do. Same way you put your car in your name, is the same way put your car in your LLC. Not sure on all states, but mostly go to a notary, transfer the title over.
Provide proof of insurance boom, your done.
Does this work in the same unison if wanting to place the items in a trust ?
The commercial insurance u will pay will have u running back to personal
What about car insurance under the LLC or Living Trust?
Love it. We do this.
In Texas, we would need to pay an annual property tax based on the value of the car if its a business asset. No tax on it as a personal asset. That's a deal breaker here.
Thx Karlton!
Im getting ahead of myself here.. but what if the vehicle is still being paid on, we have no title :/
Can you do this uf you are still paying a car note?
This bad ideal most of the time for normal passenger vehicles that are used for both personal and business use, there is no decreased liability protection b/c guess what your LLC is not gonna be driving it when u get in accident it will be a person (you as the driver) and now they will go after the driver personally and the owner which is the LLC. Put the car in a Personal Vehicle Trust for some better liability protection without risking your operating LLC assets.
I would never do that. Putting your automobile under the LLC is not a good idea.
What are the benefits of having my LLC owning my car?
Ice. So If I put my vehicle under my LLC. Will I still have a car note to pay and insurance
Good video!!! I have a question, If I buy a vehicle in Copart using my LLC do I have to pay taxes for it?? or I need to fill up a Sales Tax Certificate of Exemption??
Question: what about rental cars , flights , hotels for biz trips?
Insurance sky rocket
It is a great idea to do just that.
Hopefully, I will be doing so…
I'm a taxi driver and I need to buy a newer car because the one I have is getting old, do you think I will get a tax deductible if I use my llc to buy the newer car like 2020 to 2022 but I will buy the car with cash. No financing. Thanks for this video. 🙂
What do “I” think!? SUUBSCRIIIIBED!!
Hi Karlton,
I have a classic pickup truck I bought in my name. I'm considering transferring it to my newly formed Construction LLC, for business use, but the truck needs work.
If I transferred it to my LLC, could I write off the vehicle's engine replacement and/or restoration as maintenance of the truck to make it presentable for business use?
How does this work for a financed vehicle ?
You can only transfer a title unless the vehicle is paid off and you have a clear title..
I have a curveball.. I am currently a sole proprietor and use my truck for my business. It's a spare vehicle I use for camping but otherwise sits. I create products that sell well for it. However this is a $680/month payment that I'd like to depreciate for tax benefits. The vehicle sits parked. I use it to design and create products for that platform. Zero mileage benefits for me in this case as it sits for months at a time.
Currently truck is 3 years old, 25k miles. About 20k are pulling our camper for personal use over the last 35 months.
Everywhere I've looked is based on mileage. But haven't found anything about actually buying a vehicle for business use.
Thoughts?
I'm not an expert but I believe that you should actually be using it for business purposes to be able to benefit from any claims or tax write offs. I could be wrong, maybe there's a loop hole somewhere but I doubt the governments just gonna take people's words for it and let a vehicle just sit and be written off somehow, no matter how small. 🤔
@@beanz6795 that's the pickle I'm in. I have designed 8 products based off of it and don't think I'd have it if it wasn't a popular vehicle with needy products.
My thought is look at automotive accessory makers. They buy a vehicle for R&D and product development. Not driving it anywhere other than fuel or test runs but otherwise they just making products like aftermarket bumpers, headache racks and so on.
Wow sorry I did not see this video befor....I have sale my truck under my name to my business also under my name ( a sole proprietary LLC ) I have put the minimum amount $200 since I already paid for my vehicle in full and make the sale. 3 weeks later I get letter from sales tax division of PA stating that I have to pay over $2200 on sales tax on grounsd that my vehicle is worth $29000 . I hope other people see this video befor they make my mistake..Any way I can get out of paying the sales tax ???
What if you’re paying cash for the vehicle to be under the LLC?
Make a video... How you put crypto into a Trust.
Could this work if the person is 10 percent ownership of LLC and car is in their name ?
I don't have a LLC yet!But if I do Will my insurance payments get lower.Also if get a LLC can I put all the money I make into it and avoid Taxes or will there be a % of I will pay I live Illinois?please reply back.
Can you still put your vehicle under your LLC if you have co signed with a parent?
So from what u have said I can register a vehicle w/o my personal name because the vehicle is under a business did I get that right
My brother knocks it out the park again.
Can ipurchase my Business vehicle thru my Trust?
Does commercial vehicles have to plates from the state where the LLC?
does tis work with cars that have a lien holder? still being Financed?
I can't find the bill of sale but I have everything else. Can I still do this in nJ
Do I need to have my vehicle under a commercial insurance policy to transfer a title to my LLC for a car I just purchased. I live in Texas. I am hoping to just use my personal insurance.
I need help! I started a detailing business. I’ve seen previous were you said you shouldn’t start a LLC until you have 45K in income. Is this still true?
If I own a business out of state say Georgia but have a drivers license in another state say Florida can I register my car in my Georgia business name with Georgia plates ?
How you start a LLC?
Doing this opens you up to liability. If you hit someone in that LLC vehicle, they take the vehicle AND what’s under the LLC. If you have another vehicle under it, they can sue to get that too. Plus the LLC bank account. I don’t recommend doing this.