How to Write Off a Vehicle in 2024 (NEW Tax Code Changes)

[@jimtrue1465]

Keep in mind that if you sell (or trade-in) a vehicle you have been deducting depreciation, then you may have to recapture that depreciation. For example, you bought a vehicle for $30,000, and over the years have depreciated 100% of the cost. Now you trade it in and receive a $10,000 value for the trade-in. That $10,000 will be taxable income, taxed at your ordinary tax rate.

[@brockallstate]

I think if you have it over 5 years then that doesn’t apply but no Tax advice here, I just know you need to keep it for 5 years and use it for business

[@jimtrue1465]

@@brockallstate The IRS doesn't care how long you own the vehicle. The 5 years refers to how long you can depreciate (in other words, after 5 years the adjusted basis is 0). But whether you own it 1 year or 10 years, if you sell or trade-in for more than the adjusted basis, then the difference is taxable income.

[@hongkongbboy]

What if I gift the vehicle for my family relative for $0?

[@msjdb723]

Great video!! One more note: if you take expenses first year, you can't switch to mileage for another year. You can only use the expense method on that vehicle thereafter. IRS: To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

[@omarm5496]

But what about if I wrote off 2500 on 2022 can I write off the other 50k on 2023?

[@sixxxeight]

So then if I buy a new car and use the depreciation write off, how long until I can switch over to the standatd mileage deduction?

[@bro.ianmuhammad4331]

Ty for dropping these jewels... easily explained with visual effects

[@markcooke4866]

I bought a commercial box truck this year and plan to lease it to a business, so it will be 100% business use. If I understand correctly, I can take the depreciation because I'm not using the vehicle for personal use, and the business can take the standard mileage deduction. I own a small percentage in the business.

[@taxleverage]

If you're leasing your truck to the business, then it will be deductible by the business and then income to you personally. Since you only own a small percentage of the business, you'll probably substantially increase your income by more than the deduction. An alternative option is using it for business use, and getting reimbursed for the mileage from the business under an accountable plan if it's a Corporation (C or S). That would create a deduction on the business and no income to you personally if implemented correctly.

[@MikeLocke]

Such a valuable breakdown - thank you!

[@bml33]

Please explain what you mean by you cannot use this to put you in a loss at 9:05 in the video. Example: If I have $25,000 total business income, and $5,000 of other expenses, that gives me a net profit of $20,000 without the car. Then, taking the $25,000 car deduction would put me at a $5,000 loss. So does that mean I can't use it? Or can I only use as much as it takes to put the business to zero (so only taking $20,000 deduction for the car)?

[@Segurasbusiness]

5:15 7:30 section 179 8:11 write off the total cost in a year 1

[@Praisekeeper]

Great video! This is the most thorough explanation that I've seen

[@LYFEAccounting]

Wow, thanks!

[@10twenty2wholesalevendor2]

​@@LYFEAccounting i don't see anyone talk about if you can write off a downpayment for a personal car you use for business

[@kayebreyon]

@@LYFEAccounting😢

[@talonsilverhawk5763]

​​​​​​​​​​@@LYFEAccounting How does it work if I wanted to do Lyft for 2 years and not 6 years. Like would you just have to pay what has not been depreciated for the car (say first year was 11k and second year 7k ir would I have to pay taxes on 12k (like 3k at a 25% business tax rate) when selling/giving /closing the business and paying income tax on 12k for the personal which would be another 3k. Or do you just have to do a standard mileage deduction for a 2 year business plan. I was thinking about getting a car only for Lyft except 1 trip per year for Christmas or if other car breaks down would it be better to pay Lyft for the one 300 mile trip and keep it at 100% and eat 600 and get paid 300 out of it (or risk taking a 20 year car no optimal). I live near the airport would I be allowed to try and find a ride toward my dad's house chill for a few hours and try to find a ride back to the airport. I would rather deal with airport people cause you don't really have to worry about half the shenanigans. And my aunt and dad live out in the rich area of town where the people are way more likely to travel by air, so it would be probably a 1/4 of the rides I would give. I'm just wondering if it's even feasible to go the business route for 2 years, if you can look for ways to get where you want like say if I see a ride to the beach amusement park or mountains quickly pack a bag and make a vaccination out of it for the day, and try to find a ride back the way you came a few hours later (I don't do vacations as when you have to spend hours driving paying for gas it does not really feel like a vacation but if I'm already their for work sounds the real shitty part of the vacation is done 😂 only other shitty part is figuring out to do with dog but if I'm their for work 4 hours on the beach and drive home was not a waste of time)

[@sandys2672]

You are amazing. So professional, concise, clear, thorough - just wow! If I still owned my medium sized business, I would be calling you right now. Alas, I am “retired”.

[@speaker_vibes]

Can I use section 179 for a leased semi truck???

[@jimtrue1465]

You cannot take any depreciation such as section 179 depreciation on a leased vehicle.

[@Coopogers]

But you can take your lease payments... But just not depreciation. Hope that helps!

[@mbhatamb]

when you say car you own, should the car be on LLC name or personal name

[@ambitiousone1]

Yes please, I would love a video about how to deduct traveling expenses!

[@aerotheoreo2050]

Killing it with that suit! Looks awesome on you!

[@LYFEAccounting]

That means alot, thank you!

[@christopherhanford8021]

Brother I am sold. I will be calling you for my business and personal tax needs. We have been looking for a new CPA.

[@daisyorpington784]

Yes..do a vid on the expenses please

[@ericalouie4548]

Amazing...your video is very helpful with the notes and examples. Thanks!

[@LanierFamily]

This was amazingly helpful. Thank you so much!

[@DorethaPope]

Hi do you do schedule C for Truck drivers and an example of how to figure the depreciation for a Semi

[@ClarisseAM]

if i get my car that i own wrapped with my business logo, is business use 100% because it is always advertising my business ?

[@leonardtarver149]

Yeah only if you’re not counting the mileage. You either get credit for mileage or credit for expensises

[@krispy5139]

You can write off the cost for the wrap, but that has nothing to due with if you use it for personal or business use...

[@Swaygooy]

@@krispy5139how is advertising not a business use

[@jamescrenshaw5097]

@@leonardtarver149Yeahhhh….that would be a big NO. There is IRS guidance on point

[@LivingInChicagoAndTheSuburbs]

No

[@jaycb5284]

Please do a video about deducting business travel expenses

[@ayodeleogunniyi6187]

Great video. I do have a unique scenario. I recently purchased a personal vehicle that is over 6000 pounds. I listed the car on Turo one month after buying it and I made less than $1k between June and December. This car was used 60% for Turo business and 40% personal. I do have a second car for personal use. Towards the end of 2023, I had to do maintenance on it after the last rental due to malfunction of the suspension and it cost over $6k and I also bought new tires and rims for about $2.5K. How can I claim bonus deduction on this vehicle and other 179 expenses even though this car is not in any of my small businesses?

[@miraclelove991]

Can you do depreciation on luxury cars 2022; Dream car 2022 Corvette?

[@dudausa]

So I get the loan on my personal name or the business name ? And do I register as a combercial vehicle or regular plates?

[@MikeLocke]

I'm confused about the 179 deduction, or maybe you cleared it up for me. I kept hearing about a $28k cap for 2024 vs being able to write off the full purchase price in year 1? ....or is this $28k cap specifically for Bonus Depreciation and people can still write off the full purchase price in year 1? ....asking if I buy a 6000lb vehicle in 2024 (for business use within our S-Corp)?

[@gladyswj9968]

Job well done! Much appreciate the timely and relevant content, delivery, time stamps (chapters), and you. Keep at it.

[@evylicious4589]

Please do a video on travel expenses TY in advance

[@Iheartcatz]

Thank you for clear cut tax information. You explain it well.

[@TheChaz81]

BTW thanks for doing this! Your helping the little guy while hopefully adding a lil jingle to your pocket. Good on you!

[@deanges22]

What tax form would you use for the actual expense method? Can we please see a video of you actually doing it?

[@Coopogers]

Right? We never see this... It's always just an explanation with these channels. I want to SEE the process, not just hear about it. But I get it, they want you to buy their services 🤷🏾‍♀️

[@aaronl5072]

@@Coopogers click bait

[@DatBoiCourt]

1040(schedule c) part 2

[@IstealXmas]

Great video. Clear and to the point.

[@shawntricewms]

You Broke this Down the Best…..MVP💚🔋📶

[@TheChaz81]

Does the vehicle need to be purchased under your s Corp or LLC name? Or can it be bought in your name and written off when filing? Say if the business is brand-new and hasn't built credit. Also what's the best way to build credit in business name? Apply for a credit card in the name of the company???

[@Luxurious.shayyy]

Home Depot gas cards etc put everything in the business

[@BradBrother]

Thank you for posting and providing the right amount of explanation

[@Johnnybooom]

Im a new amazon flex driver and i am wondering if i should lease a Tesla X for delivering packages. Used 100% of the time for the business as a contractor 1099 and weighs 6000lbs

[@hjordan2322]

Thank you so much for the information. Super helpful ❤

[@ralphposadas1412]

When you say own a vehicle and not lease, we bought our vehicle and it is financed and we are making payments, does this mean we "own" it?

[@josephinebardot8403]

Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.

[@MrJtquest]

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?

[@HolliePrice-z3p]

This video is an all videos in the series are extremely helpful! I would love to see a travel expenses breakdown video!

[@kunsnoing3745]

Can the 1099 independent contractor write off the car without an LLC and should the 1099 get an LLC?

[@iliketurtles536]

If you want to depreciate your vehicle for your SIDE business but apply the depreciation to your PERSONAL tax income (main job), do you buy it with youer personal fiance or do you buy it through your LLC business?

[@jimtrue1465]

Unless you elect to have your LLC taxed as an S-Corp, the IRS views your single-member LLC as a sole proprietorship. So it would not matter if you bought the vehicle under your name or the name of the LLC. You will only be able to depreciate based on business use, not personal use.

[@goldenkiller1st636]

@@jimtrue1465thank you

[@SILVYAROMERO-th5tr]

Awesome video! I bought a Nissan Rouge 2019 last December for my business what is Tax Bracket?

[@bmzpower]

How does this work if your business doesnt have any income for the year? If im leasing a vehicle for both personal and business but the business ends up not earning anything, can I still take the deduction? would it just reduce my total taxable income? thanks

[@CDechnik12889]

Wondering the same thing. I can’t seem to find this anywhere and will definitely be reporting a loss with all the startup costs I’m incurring.

[@JuancoPRoFlow]

Roll it over Till next year

[@bmzpower]

@@JuancoPRoFlow Ohh ok thanks 👍

[@vimalpatel1997]

Please do a video on deducting business travel expenses please.

[@AssortedVideosforALL]

could you show & tell on filing video = turbotax.. thanks for all of us..

[@JordonJohnson1707]

Great video. Please make a video on how to deduct travel expenses.

[@bg8017]

Great video thank you. Should the money for the car come from business account or can It come from personal. I am in w2 and have a small aide gig too.

[@RicoOwnage786]

Question: if you have a vehicle under 6000 lbs and it costed you $100k, per the depreciation, you won’t be able to depreciate entirely by year 6. What will happen in year 7 and going forward

[@xmistaxcashxcoll]

Teach me the hardest thing to ask

[@aldoamen]

Ever heard of residual value? Lol

[@DJglobalmexican]

If more of my content, it’s in a different state and have to drive there to make it as I count the mileage from when I leave my house till I get to my hotel, or is that counting the whole trip I get back

[@larick6067]

so i drove roughly 40,000 miles this 2023 year its a 2022 honda civic sport i used that car just for business so what do i do and how does that work ? write meaning it just subtracts from what i owe in taxes ? so using the car for business just helps deductive from what i owe ? what is that owe how do i find out how much i owe, like where do i look or what am i deducting from ? ( new to this) trying to understand it all ?

[@maragarcia7778]

Does the vehicle need to be under your business name or you as the owner of the LLC can still qualify if it’s under your name?

[@natasharc4754]

I need an answer to this too

[@saquannagallow1495]

It can be under your name always do a dba when getting EIN number

[@AramHambardzumyan]

Thanks for video it is very informative, have question if you 100 % deduct the value of you car, can you use car for personal reasons, and can you buy second car and not use already 100% deducted car? Thanks

[@ralphposadas1412]

How much do you charge for tax prep married filing jointly W2 and 1099?

[@wg1408]

What if the company you work for pays for your mileage? I work in outside sales and travel a lot

[@travay6328]

Love this 💙

[@timdgaf4957]

Please make the travel expense video. Thanks for the info. Keep up with what you doing

[@irenerodd9991]

Can one use the mileage write off and use depreciation in the same year?

[@bstookal]

great content! I have one question. If you have an LLC with business expenses and tax deductions, can those deductions be applied to both business income as well as W2 income?

[@dimedavispresentstalkyospit]

Normally when it's a single person LLC, you'll file schedule c on your 1040

[@DeeYooo0]

​@@dimedavispresentstalkyospit I have a single person LLC does that mean the dedcutions on my business car can also apply to my W2?

[@phl_knives]

​@@dimedavispresentstalkyospitI'm starting a single person LLC in 2024. So paying myself is just done via W2, would a vehicle used say 30% personal have any tax advantages on personal income-tax?I'm talking with buddies in successful businesses who told me my hobbiest status and then sole prop in business was leaving money in the table and I was basically being double taxed as a hobbiest because I was collecting taxes on sales via Etsy but also paying taxes on all my materials, expendables and other supplies. Even vehicle I'm using. I'm setting up my office in a location outside of my house and my manufacturing end of things is a 20 mile drive from my office which I would be going to either nearly daily. So to and from home to office/shop isn't a write off but office to shop or shop to office is. Same with traveling to events. I'm trying to understand all this. I went from making knives/tools for fun after some injuries in an accident and it snowballed into starting to make money from word of mouth. I believe this is a great opportunity for growth in 2024. I just want to make sure I do it correctly and not leave money on the table and also not get in the hole with the IRS. SORRY for the rambling response lol. Just trying to sort through all this and get setup asap.

[@cheribarker1870]

Good info, thank you

[@beccab4349]

Can I use the depreciation for a vehicle that I use for a business that I do not own?

[@theunfusedelectrician6688]

So if i already own the vehicle but my business is new, i can still count the depresiation rates mentioned as well as the standard mileage rate of .655/mi? But what about purchasing brake pads on the company account? Just dont list the expense as a deductible?

[@slhaury]

I have a question? What tax rite-off can I receive if I work for someone and I am using my vehicle 100% for another person's business. I am also using all of my own tools that I purchased to do my work for this company. My truck recently was put out of commission because I used it for my job and the cost to fix it would not be reasonable. So I purchased a new vehicle so I could use this for work. What deductions am I intitled to?

[@dflynn9410]

Can I write off the cost of a business vehicle that I paid cash for, or would I have to finance it?

[@richardomar6820]

Awesome info very grateful greatly appreciated bro

[@tolaedison6030]

Does this mileage deduction apply to my personal car I drive for business under a corporation?

[@taxleverage]

If you are reimbursed for mileage under an accountable plan that the corporation has

[@nickfoti1316]

Is there any difference in the rules around rental fleets of motorcycles versus cars/passenger vehicles. If so what are the guidelines for depreciation on motorcycles being used under a sole proprietorship LLC?

[@jaydajourney2884]

This is just make easier understanding for person like me who not familiar with TAX vocabulary 😂. Thank you so much. So basically, can use either one of strategy, not both ? Depending on your situation. Correct? What if i use mileage method. Can i use expenses on fixing that car during driving to do my business and tired got flat? It happened to me. 😅. Thank you.

[@adaliadudley]

I am asked to enter "interest on Car Loans" is this for the life of the loan or since the business began in 2023?

[@aslopter]

Starting a new small business. Need a van under 6,000 lbs to do the job. 80% business usage. Should I buy the vehicle in the business name, or my personal name and then Lisa to the business?

[@juansebastiancastaneda871]

Is the vehicle must be own by the company? I mean the title must show the company owns

[@ameermir2351]

Can you provide more info and an example for Section 179: Must Show profit or position of income? I work full time, however, I'm thinking of Ridesharing again. If my income is $25,000 from the rideshare before deductibles, but I use standard deductions of miles etc I may get down to $10,000. Then if I want to apply section 179, and it brings me to a "loss" can I still do that?

[@TTHebrew]

I use mines for business… but it’s not in my business name. But I definitely use for business. Definitely need to write this off!!

[@romanmesina]

I thought the maximum 179 deductible for heavy vehicles is $28,900. Not $25,000, before bonus depreciation. I didn’t know you could use section 179 combined with bonus depreciation. This is something new I am learning.

[@VHThreefoldCapital]

Yes, a video on deducting business travel expenses would be helpful

[@diytacoma5758]

Their is leasing and their is financing? Or is it the same for the IRS

[@KorraTheFrenchie]

So in order to use section 179 for heavy vehicles, your business has to have made a profit if I heard that correctly. Meaning if I started my business this month, bought a used pickup truck for $40k, I’d have to make over $40k by the end of the year? Or am I mixing them up?

[@alipiracha4264]

Does Florida allow bonus depreciation on a vehicle?

[@mikes8839]

once you write off car on section 179, next flowing years you can't write that car? Or you can do it after five year's?

[@DianaBernal-z1w]

Thank you for the information. I use an accountable plan to reimburse me for my vehicle's gas, repairs, insurance, etc. Do I claim the depreciation under an accountable plan or when I file my taxes annually, is there a place to claim the deduction?

[@preciousrutlin]

Thank you for doing this video. It was very helpful

[@lunagreen3946]

So how much can you take off on a lease vehicle

[@xmen123ify]

My question is the busniess has to be in positive profit before applying the deductions and thus putting the busniess net income negative that wouldn’t work under section 179

[@FF-xl7yw]

Did you consider the rise in gas price when you think of 2000 additional with new per mile rate?

[@revnation_auto]

Why do you take standard mileage if you don’t drive much? That’s basically the opposite of what you covered in the video.

[@mcay4255]

So if you qualify for section 179 or bonus depreciation, does irs send you a check for the total amount of the vehicle?

[@rorycompton8138]

As a real estate agent, can I do this in my personal name or do I need to do it in an entity?

[@christianalexandra8927]

can you use sec.179 on multiple cars in the same year?

[@b.q.gaming9580]

The thing is that how would the IRS know how many miles I go on a car? would they take our word for it or do we have to show proof of the miles?

[@rjmprod]

Good video man…!

[@riffy91]

Can you combine the standard vehicle deduction with the EV tax credit?

[@AlexXPandian]

Any credit like that needs to be removed from the basis cost of the vehicle.

[@keithcrowe722]

Solid info thank you

[@MR707videos]

How does this effect the 29k married deduction?

[@ReallyGotMotion]

Would I need an LLC or Corp for these write offs?

[@TannerForster]

I’m financing my car it’s a new 23 Jetta and was wondering if I can take depreciation on it. Wasn’t sure if the rules are the same for leasing/financing I do doordash full time

[@Bacardibombillo]

Purchased a $50, car. Personal to get to and from part-time work. Can I deduct mileage? I work 2 days a week. Im just a 1099 employee

[@htoro]

If you take bonus depreciation in the first year, does that affect the depreciation amounts for years 2-6? Also, if I’m understanding correctly, if you use section 179 and the purchase price of the vehicle is covered at 100%, you can still use bonus depreciation?

[@ZoAzubuikeEdgeHomeFinance]

Very helpful info, thank you!!

[@johnchristopher7697]

Great video!

[@ILM2219]

How to deduct travel expenses...Please :) Thank you NJ GREAT Work!!!

[@crownpowerwashing]

Would this apply if I just purchased a vehicle for business start up?

[@Coopogers]

Yes

[@bobhmail7161]

So words mean things. He states own. To me, own means I went to the seller and I paid 100% of the price. Ownership does not mean I went to the seller with a bank loan. In this instance I don't own the vehicle. The bank does. Do I understand this correctly?