How To Setup a Home Office Deduction (Full Walkthrough)

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  • Опубликовано: 3 янв 2025
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    *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.

Комментарии • 201

  • @kristycollins5751
    @kristycollins5751 9 месяцев назад +1

    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. 👍🏽😉

  • @aryeljamese
    @aryeljamese 2 года назад +9

    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❤️

  • @All_0f_Destiny
    @All_0f_Destiny Год назад +1

    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.

  • @jenniferjace4677
    @jenniferjace4677 2 года назад +12

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

  • @RolindaP
    @RolindaP 2 года назад +19

    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🙏🏽❤️

    • @Modfam_90
      @Modfam_90 Год назад

      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
      @thewhyteshadow Год назад +1

      @@Modfam_90 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)

    • @BrandonTran
      @BrandonTran 3 месяца назад

      @@Modfam_90 If you write off using simple method of $1500 you would have a tax savings of $381 with 24% tax rate. So compare $381 vs $2626 tax savings.

  • @tranquilityhub9523
    @tranquilityhub9523 2 года назад +4

    Simply one of the best RUclipsrs 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.

  • @mcf5878
    @mcf5878 2 года назад +7

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

  • @ky3079
    @ky3079 2 года назад +9

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

  • @laschell59
    @laschell59 Год назад +3

    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!

  • @jaredgutierrez3966
    @jaredgutierrez3966 2 года назад +4

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

  • @CorneliusSmalleliterealtor
    @CorneliusSmalleliterealtor 2 года назад +4

    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
    @marvfromthecity Год назад

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

  • @riyadblue20
    @riyadblue20 2 года назад +4

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

  • @mf-sp2pg
    @mf-sp2pg 2 года назад +16

    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.

  • @gregoryrichardson508
    @gregoryrichardson508 2 года назад +8

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

  • @Networkprofessor
    @Networkprofessor 10 месяцев назад +1

    Just what I needed! Thanks

  • @thehaitianambassador215
    @thehaitianambassador215 2 года назад +10

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

    • @frenchyalicea649
      @frenchyalicea649 2 года назад +2

      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
      @thehaitianambassador215 2 года назад +2

      @@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
      @aao449 2 года назад +3

      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
      @frenchyalicea649 2 года назад +1

      @@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.

    • @elijahjflowers
      @elijahjflowers 4 месяца назад

      @@frenchyalicea649🧠❣️

  • @stephenboulding5485
    @stephenboulding5485 2 года назад

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

  • @j.d.lindsey2919
    @j.d.lindsey2919 2 года назад +4

    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 👍🏻

  • @EstMeaVita2011
    @EstMeaVita2011 2 года назад +2

    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!

  • @miltonfisher9122
    @miltonfisher9122 2 года назад +5

    I love this channel. Exactly how the wealthy stay wealthy

  • @g.pearson4726
    @g.pearson4726 2 года назад +1

    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

  • @jerryharvey6654
    @jerryharvey6654 2 года назад +1

    LOVE IT LOVE IT LOVE IT

  • @QueenTappan
    @QueenTappan Год назад

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

  • @Myla-Grace
    @Myla-Grace 10 месяцев назад +2

    Can I get your tax professional to do my taxes this year?

  • @briancook1
    @briancook1 2 года назад

    Yes it counts

  • @SimonOsamoh
    @SimonOsamoh 2 года назад +1

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

  • @dizzy4u
    @dizzy4u 2 года назад +1

    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

  • @featuredsuccess
    @featuredsuccess 2 года назад +1

    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.

  • @Johnnytrades-LTE
    @Johnnytrades-LTE 2 года назад +4

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

  • @kasiwilliams5927
    @kasiwilliams5927 2 года назад +9

    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?

  • @lindaoliver5904
    @lindaoliver5904 2 года назад +1

    Great information

  • @jcastillo3784
    @jcastillo3784 Год назад

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

  • @corbinfitzgerald6885
    @corbinfitzgerald6885 5 месяцев назад

    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).

  • @riyadblue20
    @riyadblue20 2 года назад +1

    Thank you !

  • @blackpearls619
    @blackpearls619 10 месяцев назад

    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?

  • @hazeltravick5124
    @hazeltravick5124 2 года назад +1

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

  • @stephaniegomez6823
    @stephaniegomez6823 Год назад

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

  • @esthering1000
    @esthering1000 2 года назад

    It has been a blessing. Thanks sooooo much.

  • @Mskovergal
    @Mskovergal 2 года назад

    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!

  • @SelfImageStylist
    @SelfImageStylist 2 года назад

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

  • @jessy2888
    @jessy2888 Год назад

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

  • @esthersuh3388
    @esthersuh3388 3 месяца назад

    Nice and clear. I love it!

  • @momanddaughtercookingchann9391

    You really are a genius!! Thanks for this!

  • @michigan_616
    @michigan_616 2 года назад +2

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

  • @workerbee351
    @workerbee351 Год назад

    Wow this is awesome information! Thank you!!

  • @flynig1
    @flynig1 2 года назад

    You killed this! Thanks 🙏

  • @charliebrown_handyman
    @charliebrown_handyman Год назад +1

    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?

  • @sharikennybrew958
    @sharikennybrew958 2 года назад

    You are truly a blessing ❤. I learned sooo much

  • @RainSkyPainting
    @RainSkyPainting Год назад

    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.

  • @rudene75
    @rudene75 2 года назад

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

  • @groneass2006
    @groneass2006 2 года назад +1

    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.

  • @yuliyalikhosherst4040
    @yuliyalikhosherst4040 Год назад

    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.

  • @JoeDoe1
    @JoeDoe1 2 года назад

    Thank you.

  • @themexperience3608
    @themexperience3608 2 года назад

    Love it the knowledge is reallll

  • @champjohnson8614
    @champjohnson8614 2 года назад

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

  • @omarnieves3237
    @omarnieves3237 2 года назад

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

  • @Rdn55
    @Rdn55 9 месяцев назад

    @Karlton - when you say the bathroom and closet can be used for business, does that mean it has to be exclusive used for business? My 2nd bathroom next to my home office has washer and dryer, can I count this?

  • @churchillcoins8519
    @churchillcoins8519 Год назад

    Thank you excellent video. Can I wright my home office off if I also use a virtual address. Ie Regis, Davinci,

  • @GenVNight
    @GenVNight 11 месяцев назад

    LOVE THIS.

  • @muddstir
    @muddstir 2 года назад +1

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

  • @lisajackson3743
    @lisajackson3743 2 года назад

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

  • @onilpotris
    @onilpotris Год назад

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

  • @irchrismm
    @irchrismm 2 года назад +1

    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?

  • @Da_Crow
    @Da_Crow Год назад +1

    so if my prop taxes and utilities, etc....can I times that by 18% and get a wrtie off on that ?

  • @colbystrickland
    @colbystrickland 2 года назад +2

    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.

  • @Growportunity
    @Growportunity 11 месяцев назад

    This is amazing information! Thank you!

  • @Stevo-zd8en
    @Stevo-zd8en 5 месяцев назад

    I have a question. what if a business owner lives in an apartment that is around 700 sq/ft and wants to use the bedroom as the office but the square footage of the apartment is only 2-3$ per sqft? can they still take out 5 or does the write off have to mirror the whole apartments sqft price? thanks man I love your videos.

  • @fernandoq.2916
    @fernandoq.2916 Год назад +1

    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?

  • @terryredmond4161
    @terryredmond4161 2 года назад

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

  • @dfhm-pq2cf
    @dfhm-pq2cf 10 месяцев назад

    Would working from home and writing off your office space destroy the separation of personal and business assets protected by an llc?
    Also what if you run multiple llc’s from home working from the same office?

  • @semcaj
    @semcaj Год назад

    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!

  • @zanebischoffrn
    @zanebischoffrn 2 года назад +1

    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?

  • @JeremiahsJourney08
    @JeremiahsJourney08 4 месяца назад

    so I'm opening a business in which I will be using the front room (formal living room) the downstairs bathroom (only for clients) and then an entire bedroom for my second business (photostudio). And I will have all photos and videos on social media showing thee use. They hallway is crazy. I didn't think about that!!

  • @clewis266
    @clewis266 Год назад

    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.

  • @erikmoreno1237
    @erikmoreno1237 Год назад +1

    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

  • @btdub5
    @btdub5 Год назад

    U Tha MAN 🧐🙏

  • @holathleteacademy3510
    @holathleteacademy3510 2 года назад

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

  • @pabawathieperera9118
    @pabawathieperera9118 Год назад

    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

  • @SpiciestBee
    @SpiciestBee 11 дней назад

    I wonder can it be exclusive if you have set and consistent business hours for that use of space?

  • @scnager1
    @scnager1 8 месяцев назад

    What do you do if it's a 1BR-1BA? Would you just tape off the area on the floor showing the desk and chairs is used exclusively for business? There's no exclusive room in this case. You are either mixing the living room or the bedroom in there

  • @adesa1
    @adesa1 Год назад

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

  • @lil.k2.dirtyawg535
    @lil.k2.dirtyawg535 2 года назад +1

    What If your home is owned by you no morgae .. would it be best to get a office outside of my house. Or jus deduct the office space

    • @tylerhames6381
      @tylerhames6381 2 года назад

      I'd like to know this as well! Did you find the awnser?

  • @KenJames9911
    @KenJames9911 8 месяцев назад +1

    Can this be done with a single LLC or does it require an S-Corp??

  • @karanjeetsingh6599
    @karanjeetsingh6599 2 года назад +2

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

  • @cjhsuliman13
    @cjhsuliman13 2 года назад

    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.

  • @biankegadsden9110
    @biankegadsden9110 2 года назад +1

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

  • @KB-ok5ob
    @KB-ok5ob Год назад

    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?

  • @coreys.4778
    @coreys.4778 Год назад

    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.

  • @SD-dm7lg
    @SD-dm7lg Год назад

    Does the restroom need to be connected to the office per se? As the one in this video?

  • @bob.bobman
    @bob.bobman Год назад

    If sole proprietor and I have Xtra bedroom I use primarily for business, but some of it is being used for personal storage and a guest bed. Can I draw up a contract with my wife that she pays my business 1 cent per sf per year for storage\bed space in that room. Effectively making that space 100% business use? Then I could claim the entire room sf on deduction.

  • @user-yn6vx9qf9y
    @user-yn6vx9qf9y 2 года назад

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

  • @rodhester2166
    @rodhester2166 Год назад

    question. business at home, I use a spare room for business and part of unfinished basement for storage of packing material etc. , Unfinished basement is not included in the square footage of a home. Can it still be a tax deduction? and if so how do you calculate it.

  • @dresbmf219
    @dresbmf219 9 месяцев назад +1

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

  • @clara7920
    @clara7920 Год назад

    Yes I just became a 1099 worker who works from home

  • @manuelharo5263
    @manuelharo5263 4 месяца назад

    This is valid for a 1099 sole proprietor correct?

  • @angelahj
    @angelahj 2 года назад +1

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

  • @Ms2Chill
    @Ms2Chill 2 года назад +1

    how does this work for S Corp Filing?

  • @frenchyalicea649
    @frenchyalicea649 2 года назад

    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.

  • @chrystalfoster7960
    @chrystalfoster7960 Год назад

    Do all of the home bills have to be in my name and be paid out by the LLC business bank account?