Basically, just be honest. If it's a gray area, stay on the safe side and consult a CPA. Thanks for the video, it has good information. The summary in my mind is use honesty and diligence.
@ilc-nl3yy Жыл бұрын
I probably don't write off enough. I started mobile food business last year and didn't even have to buy any expensive equipment. I already had a flat top griddle, pop up tent and other supplies from the house. I only have inventory, liability insurance, supplies, licenses, propane and cellphone for accepting credit cards. I couldn't write off any vehicle expenses because I drive from my house to my location and back home. I have my food inventory delivered to my house.
@denovo092 ай бұрын
Excellent video. People need to hear this.
@nolandionne12622 жыл бұрын
Thank you for the info, and thank you, Algorithm, for feeding this to me. I’m doing taxes right now for my wife’s at-home daycare business and my W2 income, filing jointly.
@LYFEAccounting2 жыл бұрын
Glad you found us because based on your situation, you're going to get a ton of great information from watching our videos
@midwestmutineer76752 жыл бұрын
This was so helpful! Filing my first year's business taxes and this was so great!! THANK YOU!
@nccrchurchunusual5 ай бұрын
Printed receipts fade & disappear...
@loricat56065 ай бұрын
Indeed, it's definitely important to scan your receipts (assuming you want to use them for a legal tax deduction)!
@jackieb45305 ай бұрын
Make a photocopy or use an app which converts them into PDF
@cupidok2768Ай бұрын
If I invest in a small company can I write that off as company expenses
@rochill2537 Жыл бұрын
Thank you 😊 💓 I hope I can apply this knowledge, 🙏
@michaelmcbride95512 жыл бұрын
Clever subscribe technique, I am already subbed, but I like it!
@LYFEAccounting2 жыл бұрын
Haha I appreciate that!
@GGlock545 ай бұрын
I want to be like you when I grow up. Great video man!
@abbeypierre31362 жыл бұрын
Love your videos! Keep them coming.
@LYFEAccounting2 жыл бұрын
Thank you, Abbey! Will continue to do my best.
@swb3248Ай бұрын
You do NOT need a dedicated room to claim home office deduction. Case law back this up.
@calwianka2 жыл бұрын
Excellent vídeo. Thanks
@LYFEAccounting2 жыл бұрын
Glad you liked it!
@calwianka2 жыл бұрын
@@LYFEAccounting hey I have a question. BTW Greetings from Peru. I'm an independent contractor with a US company in NC. Do they need to give me a statement of wages/fees paid to me for my taxes in the US?
@SelinaSherise Жыл бұрын
Can travel for an investment property can that be a write off?
@ramblinralph76095 ай бұрын
Good advice, good information. Thank you.
@brookecrowell61306 ай бұрын
Bruce is my guard dog. Protection. 🎉
@PlayRoom446 ай бұрын
And you write off all his expenses?
@oldrrocr3 ай бұрын
My 2 cents: If you do get audited, hire an Enrolled Agent to advise you and communicate FOR you with the IRS. Worth every penny.
@CaliRoseCo Жыл бұрын
This was great, thank you!
@FinancialFreedomMadeSimple2 жыл бұрын
Thanks for this informative video.
@vespaman10117 күн бұрын
They gone ask what breed i have? This miniature poodle i got is hella defensive. He would definitely fight you. 😂
@patrickjoyner21762 жыл бұрын
How can you do my taxes ? My current person is not as knowledgeable as you are.
@nicollepolanco9349 Жыл бұрын
What if I have an LLC and I do taxes with my husband?
@blancagavina8189 ай бұрын
Love this!
@yaboiavery5986 Жыл бұрын
how much more of the blanket does the IRS have to pull before people start realizing that they're laying in the cold? It's like the frog in the boiling water experiment.
@thejmz2 жыл бұрын
Amazing content! Thank you. #subscribed
@briandeluca6908 Жыл бұрын
Pretty much most of these things are not applicable to passive real estate
@abbieamavi Жыл бұрын
as a flight instructor = coffee. necessary expense.
@vineelp2 жыл бұрын
thanks for the informative video. my business need sofa and refrigerator. but it doesn’t fit in the small dedicated office room. if i put in living area. can I write off portion of it?
@LYFEAccounting2 жыл бұрын
Are you working from home (primary residence) or in a commercial/investment property?
@vineelp2 жыл бұрын
@@LYFEAccounting yea I am working from home (primary residence)
@gellopudding2 жыл бұрын
Or you could just write off 100% of your cell phone expense because procedurally, the IRS does not require you to allocate this expense (and they haven't for more than a decade).
@tylucien90152 жыл бұрын
Thanks for all your help. My accountant was impressed that I knew about the solo 401K. Question when they say up to 23 % in taxes you have to pay does that include the 15.3 % for social security ? Or you don't have to pay it?
@giovannagaldos62153 ай бұрын
I like your videos.
@CryptoQueen88886 ай бұрын
Can you make a video on Accountable Plans for S Corp?
@MoneyMelJr2 жыл бұрын
Hey, what's that in the sky! LOL
@LYFEAccounting2 жыл бұрын
🤣🤣
@josielancaster70952 жыл бұрын
Epic thanks
@Cincinnatighoul3 ай бұрын
What about digital receipts? Do they apply the same as physical receipts, given we are in the age of technology? I keep an excel log of all applicable business expenses and have files with the relevant receipts.
@lounap86582 жыл бұрын
If I have a plan that has 5 phones and I use one phone strictly for my new business can I write off 1/5 of the bill and the cost of that phone?
@LYFEAccounting2 жыл бұрын
I think that’s the correct way to go! Even better if you can see the specific costs for that phone line
@desiramos36392 жыл бұрын
I take pictures of each receipt. Send it to an asistant who then saves the picture onto an excel sheet with business reason. Date and time. Is that fine? Or do I still need to keep the hard copy ?
@LYFEAccounting2 жыл бұрын
Scans or pictures of your receipts with a sheet can be fine, that’s actually great that you’re doing that!
@ilc-nl3yy Жыл бұрын
I put my receipts in zip lock bags, write down the dates, the amounts and stores.
@vineelp2 жыл бұрын
my llc started in december 2021 I am not filing taxes and not showing startup expenses for the year 2021 as there is no business activity. so can I show start up expenses in my next year tax filing in 2022 taxes?
@lashawnyasnead11562 жыл бұрын
When I did NY taxes and it said I was getting a refund but now it's saying I am not getting a refund. I don't know why but I'm trying to get in touch with someone because I don't know why it did this. I did my own taxes the last 3 year and I went to a pro to check and make sure I did it right so what can I do to find out
@ellenedekantella18222 жыл бұрын
But, but the rich get free passes🤔🤔
@tuV13ja3 ай бұрын
So even if you are a "self-employed" software developer that work anywhere from your laptop, you must have a dedicated space as office? 🤦♂️🤦♂️🤦♂️
@jameschapman9283Ай бұрын
No you should have an office space to be able to write off portions of gas electric and internet bills
@tuV13jaАй бұрын
@@jameschapman9283 living from hotel to hotel is not an option then hahaha
@fusionsoundproductions2 жыл бұрын
I started a sound production/DJ business. Can and how do you write off equipments that will be use in the businese that you already own before starting your business? I will be buying more equipment too
@sambo314 Жыл бұрын
You transfer the equipment to ownership under your COMPANY not yourself.
@Iddragon2 жыл бұрын
Mag?
@briandeluca6908 Жыл бұрын
In 2022.. there is this thing called the credit cards keep tract of the transactions there for receipts are pretty obsolete
@kam53332 жыл бұрын
LYFE Accounting, what about a KZbinr who reviews business class flights?
@taylorrobeug20442 жыл бұрын
Everything is ok, nothing to see here lmao 🤣
@LYFEAccounting2 жыл бұрын
🤣🤣
@johnerickp2 жыл бұрын
Everything is pretty much a red flag. Lol
@LYFEAccounting2 жыл бұрын
You've got to be careful lol
@sweeteime2 жыл бұрын
And is scanning the receipts to your app an acceptable form of tracking your expenses or so I need the actual receipt
@LYFEAccounting2 жыл бұрын
Scanning receipts are acceptable and common for many businesses
@asmoov2 жыл бұрын
If you pay for something on your business credit card are the payments you make to pay back the card tax deductible
@jamespainter82742 жыл бұрын
Yes. Using a credit card is like cash and is recognized in the period incurred. For example, if you buy something on 12/31/2021 with your credit card, that expense is for the 2021 year even if you have a balance on the card and pay it off on 1/1/2022 (paying off the balance is just moving cash to accounts payable on the balance sheet and in itself is not an additional expense, just the closing of a payable already recognized). Interest expense is also tax deductible, but there are limitations on how much interest you can pay based on your net income. This falls under §163(j) for business interest expense limitation (limited to 30% of AGI), though it is unlikely that credit card debt alone will trigger this scenario.
@LYFEAccounting2 жыл бұрын
Yes, as long as the transactions on the business card are qualified expenses. You may also deduct the any interest incurred on the business credit card as well.
@vineelp2 жыл бұрын
I already have computer desk which I bought beginning for $1000 of 2021 and I opened business at the end of 2021. for 2021 taxes can I claim that $1000 as startup cost?
@wannabeskateboards2 жыл бұрын
You bet homie. As long as you have proof of purchase (in case of audit) to show when and how much you paid 🤘
@vineelp2 жыл бұрын
@@wannabeskateboards purchase date is before the business opening. so what percentage of the cost can i write off?
@wannabeskateboards2 жыл бұрын
@@vineelp it’s still a start-up cost. Doesn’t matter if your business wasn’t quite open before you purchased. You’ll need to research how much ‘cause I’m not a professional lol.
@LYFEAccounting2 жыл бұрын
Yes, this would be considered a startup cost and you can deduct $5,000 in startup costs before you launch your business. After $5,000 you must amortize the costs. I have a video that breaks this down more here: kzbin.info/www/bejne/fqisaYN5rpx7eq8
@vineelp2 жыл бұрын
@@LYFEAccounting Thank you
@eleutherae2 жыл бұрын
Great video! I have a quick question, if you have a tax due amount (line 16 of 1040) of $10k and you have a nonrefundable tax credit of 5k, and you’ve withheld $15k from your paychecks throughout the year, how much will you receive (or pay) after filing your tax return?
@eleutherae2 жыл бұрын
And is line 16 also my “tax liability”? The terms are throwing me off a tad bit: tax due vs tax liability.
@megandrewm54502 жыл бұрын
Your return will be 10k. The 10k on line 16 is your "tax liability." Nonrefundable credits can drop your tax to $0, but not negative. So you'd owe 5k in taxes, but because you have 15k withheld, you are owed 10k. If your liability was larger than 15k, that amount due would be your "taxes due".
@eleutherae2 жыл бұрын
@@megandrewm5450 thank you!
@LYFEAccounting2 жыл бұрын
Meg's answer is hypothetically correct, assuming that you are withholding enough according to your income and that hasn't already been factored into the tax due
@amandacarter4972 жыл бұрын
What movie are these clips from ?
@jamieg14692 жыл бұрын
I think they’re from show called Schitt’s Creek
@LYFEAccounting2 жыл бұрын
Yup, Jamie is right, it's from Schitts Creek
@sweeteime2 жыл бұрын
What’s a good app to use to track mileage and receipts?
@LYFEAccounting2 жыл бұрын
You can use Quickbooks app for most things and, Mileage IQ specifically business miles
@tac10132 жыл бұрын
Glad I did this search! You have a new subscriber. Quick question...what if you don't own a home yet, and are renting and have a work space?? Does this still apply?
@LYFEAccounting2 жыл бұрын
Glad you found us too, Tiffany! So I think you're asking about the home office tax deduction, right?
@jtreed57162 жыл бұрын
@@LYFEAccounting Hey I'm going to respond for her if you don't mine. Yes that is exactly what she saying
@datluvlyfem Жыл бұрын
Very helpful information
@damionjones52892 жыл бұрын
Hey my name is Damion I’m 19 and out of Texas. I currently work in a Collision shop doing paint/body work on cars. I just had a little shop built at my parents house where I currently still live. I have been doing a little bit of side work out of my shop but I have been just getting paid cash for everything I do! But I want to form a llc a business with just my self for my shop so I can start writing stuff off like tools and etc… Do you think I should start a llc for my shop and take in most of the income as cash and then the rest of the money as my annual income (that I get taxed on) or should I just not start a llc ? and just stick with just making cash on the side? If there’s a phone number I can call that would be great! I have been watching all your videos and been taking notes also! I’m learning so much! Like I said I’m 19 I would rather make business mistakes young and learn from them so when I’m older I won’t have to worry so much!
@wannabeskateboards2 жыл бұрын
An LLC is ideal for someone making good money but also has a risk of being sued. This will eliminate people coming after your personal assets. An LLC will also change up how you do your taxes compared to sole proprietorship. Google and KZbin help answer a lot of questions when it comes to which is the better route, but so is talking to a professional 🤘
@realfire6883 Жыл бұрын
I took one of my best customers to a strip club and paid for multiple lap dances, can I can write that off??
@ancconsultant86678 ай бұрын
How would they know tho ? lol
@briandeluca6908 Жыл бұрын
First off why would you pay your child 80k. You should never pay your children more than 12,000 because that's the limit that is tax free
@dardrierozzelle8197 Жыл бұрын
Sean, you're very intelligent, so STOP the corny jokes!
@LYFEAccounting Жыл бұрын
Dang ok
@dianefoster3059 Жыл бұрын
Whatever. He can be smart and corny.
@LYFEAccounting Жыл бұрын
@@dianefoster3059 thanks, Diane! 😊
@DependsWhatDay7 ай бұрын
I enjoy the jokes.
@kerricollins38385 ай бұрын
The a women on youtuber alica Dougherty dozen she spend a lot Money over spend on food about two thousand on food Christmas present clothes try write it off her youtube content are dropped over feed her kids junk food her garage is grocery store she write off her cars van sons jeep adopted eight kids
@PlayRoom446 ай бұрын
Are you serious I could get a dog and write off all his expenses of food and vet and all for a tax write off? I’ve never heard a better reason to get a dog
@crossingthemountain5 ай бұрын
Also just common sense works outside of this video
@kmarsh65km5 ай бұрын
should my 1040 schedule c match my companies financial statement for self employed exactly? Like once I enter everything, there are differences like car/truck expenses, meals and entertainment, depreciation. Am i supposed to go back and enter journal entries to make them both match?
@rgrobinsonxoxo3 ай бұрын
Make a sch c spreadsheet and total each category into Separate files and include the vendor date and expense and any notes for The expense if needed. Then a separate file of the receipts scanned/photocopy or even bank statements highlighting those expenses will work. That way your files For the worksheet you make will all match up to your schedule c you filed and you have the invoices/statements to back it up.
@S_Kane2 жыл бұрын
TEACH!!
@LYFEAccounting2 жыл бұрын
Doing my best 😃
@Hi-jx5oe2 жыл бұрын
Are you all accepting new clients yet?
@LYFEAccounting2 жыл бұрын
Yes, we're actually about to start winding down. Check lyfetaxes.com if you need to book