How To Setup a Home Office Deduction (Full Walkthrough)

[@kristycollins5751]

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. 👍🏽😉

[@laschell59]

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!

[@aryeljamese]

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❤️

[@jenniferjace4677]

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

[@dad6889]

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.

[@mcf5878]

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

[@tranquilityhub9523]

Simply one of the best KZbinrs 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.

[@jaredgutierrez3966]

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

[@CorneliusSmalleliterealtor]

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

[@thehaitianambassador215]

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

[@frenchyalicea649]

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]

@@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]

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]

@@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]

@@frenchyalicea649🧠❣️

[@ky3079]

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

[@marvfromthecity]

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

[@Myla-Grace]

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

[@riyadblue20]

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

[@mf-sp2pg]

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.

[@RolindaP]

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]

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]

@@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]

@@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.

[@kasiwilliams5927]

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?

[@Networkprofessor]

Just what I needed! Thanks

[@Da_Crow]

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

[@EstMeaVita2011]

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!

[@gregoryrichardson508]

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

[@dizzy4u]

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

[@stephenboulding5485]

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

[@charliebrown_handyman]

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?

[@QueenTappan]

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

[@SimonOsamoh]

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

[@miltonfisher9122]

I love this channel. Exactly how the wealthy stay wealthy

[@g.pearson4726]

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

[@blackpearls619]

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?

[@churchillcoins8519]

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

[@j.d.lindsey2919]

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 👍🏻

[@Johnnytrades-LTE]

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

[@featuredsuccess]

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.

[@hazeltravick5124]

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

[@Rdn55]

@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?

[@jcastillo3784]

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

[@semcaj]

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!

[@corbinfitzgerald6885]

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).

[@lisajackson3743]

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

[@yuliyalikhosherst4040]

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.

[@groneass2006]

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.

[@jessy2888]

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

[@SelfImageStylist]

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

[@KenJames9911]

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

[@lnkinc6823]

Great editing (another business for sure * Creative director :) ) and as always very educational..... Much appreciated. One question on 20:44 with Taxes when Itemizing can we take it both on the the Sch A and then also on the home office deduction as well or only can we only take the deduction in one area? Thank you

[@karltondennis]

Both!

[@lnkinc6823]

@@karltondennis would that be allowed as it would be double dipping right? thanks

[@stephaniegomez6823]

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

[@RainSkyPainting]

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.

[@muddstir]

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

[@Stevo-zd8en]

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.

[@michigan_616]

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

[@scnager1]

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]

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

[@erikmoreno1237]

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

[@karanjeetsingh6599]

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

[@zanebischoffrn]

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?

[@pabawathieperera9118]

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

[@colbystrickland]

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.

[@dresbmf219]

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

[@prettybrwneyez7757]

It is

[@cjhsuliman13]

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.

[@Mskovergal]

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!

[@lil.k2.dirtyawg535]

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]

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

[@esthering1000]

It has been a blessing. Thanks sooooo much.

[@momanddaughtercookingchann9391]

You really are a genius!! Thanks for this!

[@flynig1]

You killed this! Thanks 🙏

[@jerryharvey6654]

LOVE IT LOVE IT LOVE IT

[@workerbee351]

Wow this is awesome information! Thank you!!

[@holathleteacademy3510]

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

[@fernandoq.2916]

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?

[@esthersuh3388]

Nice and clear. I love it!

[@sharikennybrew958]

You are truly a blessing ❤. I learned sooo much

[@onilpotris]

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

[@dfhm-pq2cf]

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?

[@Ms2Chill]

how does this work for S Corp Filing?

[@rudene75]

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

[@champjohnson8614]

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

[@irchrismm]

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?

[@angelahj]

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

[@bob.bobman]

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.

[@clewis266]

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.

[@SD-dm7lg]

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

[@rodhester2166]

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.

[@JeremiahsJourney08]

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!!

[@pabawathieperera9118]

Mr Carlton, What is HOA fees?

[@KB-ok5ob]

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?

[@Growportunity]

This is amazing information! Thank you!

[@manuelharo5263]

This is valid for a 1099 sole proprietor correct?

[@coreys.4778]

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.

[@adamwilson6761]

can you write off storage in your yard or garage..

[@lindaoliver5904]

Great information

[@biankegadsden9110]

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

[@chrystalfoster7960]

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

[@themexperience3608]

Love it the knowledge is reallll

[@briancook1]

Yes it counts

[@user-yn6vx9qf9y]

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

[@terryredmond4161]

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

[@SamuelBarron-dj4sy]

Can i do this whit a duplex fha loan ? Or only with a llc

[@charlespritchett1756]

What about LLC owner w/ S corp paying self as W2?....Are all W2 employees excluded from home office deduction including proprietors?

[@creativeworks4132]

Why do you include the hall way, closet and bathroom?

[@riyadblue20]

Thank you !

[@omarnieves3237]

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