How to Write Off Your Dream Car Tax Free in 2023

[@wafflecatstudio]

Wow, I don't think I've ever heard anyone mention or bring up section 179. Dropping the real knowledge on this channel!

[@LYFEAccounting]

Not holding anything back!!

[@Michael-st9ky]

Game changer!

[@joalexstatham4124]

Great job! Great energy! Calm intelligence! Simple A to B information! Highly likable and recommended!! ⭐️

[@LYFEAccounting]

I appreciate that!

[@seizetheday2890]

Very valuable. Did this for 2021 and saved over $30,000 in taxes. Thank you!

[@kristenburgsteiner1408]

What kind of vehicle did you purchase?

[@houstonshomeautomation3524]

hey guys pat here from hostons home automation llc .i just wanted to thank you guys again . after watching this and the credit video , i was able to get a 2020 chrysker pacifica s seats 7 or stores 8 ft of cargo . it gets 80 mpg and qualifies for the setion 179 deduction . perfect for lyft , odd jobs chaffeauring etc . it shpuld make me 700 k in 5 years if verything plays out right

[@dalecrosby4479]

I freaking LOOOOVE this channel. They go into such good detail and explain in a way the most common man can understand

[@LYFEAccounting]

Thank you Dale!! 💯

[@charlenerevell7543]

Yess!!! So glad I was blessed to run across this channel. Going to use them too!

[@TipsyArtist]

me too! so glad I found this today!

[@tofu86oc55]

6000 pounds is Gross Vehicle Weight, that means Curb weight plus payload capacity. so a heavy SUV with 5000 curb weight that can carry another 1000 pounds qualifies for section 179

[@CammyMoto]

Sounds like my company needs a 2021 RAM TRX.🤷🏻‍♀️

[@manegrindshard]

lmao you and i think alike

[@banned474]

Bruh lol

[@Daybyday07]

Yup

[@KL-cy1wc]

Hell yeah 🤣

[@Gio-xp1ds]

All land scaper and pool guys like “👁👃👁✍️”

[@Tency777]

Sounds like my bussiness gonna need an AMG, why not

[@DavidGarcia-fp5hg]

I have one ☝🏽 recommended

[@daR2daO2daZ]

Lol

[@jayzell99]

🙌🏿🙌🏿

[@GridMassTAC]

All Day!

[@turtletom8383]

AMG "Bitch better have my money"

[@wraptonic]

If anyone needs business decals for their car in California lmk, I’m a vinyl wrapper and we can print out anything you need and the wrap is also removable so you can protect your precious paint as well 😇

[@LYFEAccounting]

Plug talk

[@MariaRodriguez-qp6op]

ALREADY SUBSCRIBED... LET'S NETWORK...

[@wraptonic]

@@MariaRodriguez-qp6op of course, let’s do it. What did you have in mind?

[@MariaRodriguez-qp6op]

@@wraptonic Marketing, Networking, Merchandise & Collaborations on the East Coast

[@Grumpyskater]

Where in California?

[@Citizen_Shane21]

Dude i was so f**kin frustrated about being stuck in my lease now you've given me the greatest loophole ever. Seriously bro thank you so much. Can't beleive I'm just findingthis out. Omg thank you.

[@shreqboi1]

Taking my business serious this late in 2021 and from this point on, this was a perfect recommendation from KZbin as I’m a mobile diesel mechanic 👨🏽‍🔧

[@edsaylor331]

In Virginia, if you claim a vehicle as business your personal property taxes go way up--thousands for an expensive vehicle. The tax offset may still be beneficial, but be aware of how localities try to bite back.

[@LemonySnicket-EUC]

That's a write off as well also.

[@WarriorPhilosopher1]

Found you guys the other day and i'm learning so much, thank you for uploading these great videos! Even though i'm Canadian and looking for Canadian tax information, this was very informative. Wish there was a Canadian channel like this!

[@LYFEAccounting]

Thanks for watching! When you learn, you should start the channel 😉

[@CecilBell-ei5dt]

Keep doing what you doing my brother. Trying to jump my business off from scratch and I had a lot of questions about buying my vehicle and you put me on point thank you keep up the good works!.One Love!❤🙏😃

[@ProdbyTrehnt]

My professor did this with his car, his suits, his phone, everything! Genius

[@judyhall5624]

Please, explain how as a professor, he wrote off his expenses as a business? Hmmmm

[@ProdbyTrehnt]

@@judyhall5624 he owns businesses outside of his professor role

[@mariamiranda7624]

G-wagon is my dream car .I just started small cake business thank you for the information 🙏🙏🙏❤️

[@mtigress4589]

Be careful with this guy's advice. He's failing to mention that Section 179 is still limited by the higher Section 162 that says expenses need to be ordinary and necessary. Try explaining during an audit that you NEEDED a g wagon for cakes.

[@BeshEntertainment]

@@mtigress4589 all she has to do is get her car wrapped with her business logo & say it's for marketing.

[@mtigress4589]

@@BeshEntertainment That's not true. These personalities make it seem like it's that simple but it's not. They play the odds of the return coming under audit.

[@Kay.D]

@@mtigress4589 G-Wagon grabs attention great for advertisement.

[@mtigress4589]

@@Kay.D to that point it would be asked how often is it being driven just to advertise. How big is the company info on the car. Who drives it for hours without mixing with personal errands at the same time. My problem with this video is they are trying to sell the idea of writing off your dream car for business but most ppl would like to drive their dream car recreationally. Ppl popped for audit aren't going to be able to get out of a huge bill saying a video gave me this advice.

[@rtanaka]

This one felt like it was extra high quality. Thank you for the great info + presentation. Just got a Model Y. Next is Cybertruck and Roadster!!

[@LYFEAccounting]

Good choices!! And thanks that means alot coming from you of course

[@jmedia82]

He really had no idea what he was saying...

[@HardcoreGamer101508]

Stopped the video like 1 minute in. So I can't do any of this unless I have a business. Got it.

[@Tolbat]

You can form an llc and then contract yourself, and pay the llc and then pay yourself

[@alorrick7546]

BBBBRRRROOOO! i was wondering this so long and i bought my dream car to drive and for the collector value! This is GOLD! For my small buisness!

[@airmett8939]

You’re so laid back and helpful man. You’re cool

[@LYFEAccounting]

Thanks, Airmett. You're even cooler for supporting the channel. Thanks.

[@Poeticfloyvonne444]

I Learned more than I learned in My whole life off of this video! Very informative and Valuable. Thank You for Sharing 💯😊

[@LYFEAccounting]

Wow thanks for such a good time wonderful comment, glad I could help

[@ronaldvanengen1887]

The newest Cadillac escalade with Super Cruise technology!! For my personal Private Uber business!!

[@sheaorourke5303]

This guy is really good. Great info and delivery. Editing is top notch. Subscribed!

[@Ultrageizt]

2022 Freightliner M2 Business Class Extended Cab RollBack with a 21ft Miller Chassis! (Don’t know if Tow Trucks qualify but I’m putting it in the Universe) Cheers!

[@comoelitamelendez8467]

I mean that sounds like a utility truck to me. Just saying ---Accountant

[@ElishaBennett]

Listen, I subscribe to a lot of informative business channels and you by far explain the process, the follow thru, and the end game better than any one of them. Thank you for taking the time to do this for all of us small business owners. You make a dream become reality.

[@LYFEAccounting]

WOW, this comment means so much to me. I am glad that you took the time to write it and share it with our community. Thanks for watching :)

[@robertoaragon7915]

I want a heavy duty deisel truck to start up my roofing and demolition business, this was very helpful 🙏🏽💯

[@LYFEAccounting]

Glad I could help

[@DaDE_305]

@@LYFEAccounting hey bro I’m starting up my business that being said if I want to get a call my business name immediately I know I will have to do a personal guarantee what I have to put something down? And what do you think the minimum score is for my personal credit 650?

[@Jasonj0303]

Love your channel. Easy to follow and can rewatch if needed!

[@ctbaze28]

I appreciate this concise breakdown!

[@LYFEAccounting]

You’re welcome!! Are you subscribed?

[@volnettewilliams5881]

The purple Rolls Royce Phantom!!!! It’s the business!!!

[@BrooklynCashmere]

GREAT info, super easy to understand! Thank you for taking the time to provide such valuable information 🥰🥰🙌🏾🙌🏾🙌🏾🙌🏾🙌🏾

[@LYFEAccounting]

You are so welcome! Just curious, what was your favorite part?

[@johnlarson3305]

Really liking the 22-23 GMC Denali 2500 AT4.

[@abjtravels]

Love your Simplicity.

[@followerofchrist2717]

Thank you. Great information and easy to follow

[@SimplyCars_]

I just love finding extremely valuable information

[@LYFEAccounting]

We do our best to deliver every day!

[@voyagerprobe]

Great video. Thank you for providing concrete examples of exactly how to do this. I.e. write off one's car. My accountant doesn't even explain it this well !

[@justscrollthru84]

Time to replace them

[@saltyroe3179]

For me actual expenses has exceeded standard deduction since 1978. The most deduction you can get is if your business can justify buying the car and it is for business use.

[@isleywilson8]

Best Channel Ever!

[@Xtremeproducts]

I know I subscribed for a reason. My dream car is the hardtop convertible Range Rover

[@DavyDave1313]

That’s crazy. I wish I was smarter to start a business and take advantage of this. But I’m a humble layman

[@lysol316]

Excellent video. I appreciate the knowledge

[@TheJonOrtiz]

I got a few questions my man I have a full time job. Pay traditional taxes. I started doing DoorDash on the side and I’ve been tracking my miles. 1) how can I prove to the IRS about my deliveries if I got audited ? I’ve been just logging the mileage 2) how would it affect my “traditional taxes” from my main job? Thank you in advance. I might buy a Lambo to door dash in 😎

[@thatguy6207]

I forgot about this…. And I needed a new large sedan car or even Sprinter van for business. We own a business and have several other cars and trucks as personal vehicles. Thanks.

[@LYFEAccounting]

You've definitely got to take advantage!

[@idnessi]

Amazing stuff! Thanks for the informative video!

[@usgenxr]

Great video as always. Thanks, Sean!

[@LYFEAccounting]

Glad you enjoyed it, Shannon! :)

[@mariogutierrez2965]

Something he didnt mention. COMMUTING (To and from work) are not deductable. So your standard mileage expense might look smaller if you only track your miles for actual business

[@LYFEAccounting]

Correction: Commuting to and from your office(s) is not deductible.

[@NuMBERNYC]

What if I work from home (my office). I drive to the post office 10 miles away (business mileage) but then 10 miles back to the office, do I count those 10 miles as well?

[@joelmarcy8027]

@@LYFEAccounting what if your business is run out of your home?

[@sorrell9046]

You have a great vibe and delivery man. Keep this up g!

[@LYFEAccounting]

Thank you! Will do!

[@luxurytaxprep]

Great break down and delivery 🔥

[@LYFEAccounting]

Ahh I really appreciate this - Sean :)

[@kasiwilliams5927]

Wow!! Amazing explanation I’m studying for my EA and your content is extremely helping. Thanks for your time and knowledge.

[@LYFEAccounting]

That means a lot to hear! Hey shoot me an email [e-mail] - after you get your EA, maybe we can work together?

[@lucasencarnacao19]

Thanks for all the great info!

[@LYFEAccounting]

Thank you for watching!

[@wealthautomations]

Thanks for the info bruh. After watching this I think leasing is the better option for me.

[@chefjosesoto]

Cadillac 600 I'm going all in!

[@carolinewhite2169]

For real...like Sir is this really true..thanks for knowledge.

[@LYFEAccounting]

You’re so welcome!

[@GoaWay...]

@@territhomasthon5628 you don't have a comment above. 🤔

[@LilitShahnazaryan-e5u]

Thank you for the great content! I assume the registered owner of the car has to be the business to qualify for section 179 deduction?

[@loigrand]

I have a couple of questions, but first I wanted to thank you for taking the time to explain this. Question 1) does this applies if we purchase a used car and deduct it in 1 year one? Or the car has to be new? 2) can we purchase a second car on year 2? Thank you very much in advance and if you can DM me with your office info please.. thank you!!!

[@victoria19853]

I believe the vehicle has to be new. I personally know some one with a business and they always get a vehicle new after they can’t get any more tax write offs they get rid of it and get a new one. Check with local state laws because laws are different state to state.

[@allisonfalcone8788]

If you write off 100% of the vehicle using code 179 in 2022, are you still eligible to use the standard mileage rate deduction on that same car in subsequent years?

[@caribbeanvibes4070]

So the key is to identify if you’ll have a huge tax bill so you can use that strategy. If not you’ll be coming out of pocket to make those payments?

[@VGSoundFX]

Excellent video. Goal of a model 3 Tesla for 2022! Using actual expenses for gig work :)

[@LYFEAccounting]

Thank you and best of luck to you! 💯

[@robertcorrales4774]

My dream car that weighs over 6,000 pounds is definitely a G-Wagon or Rolls Royce Wraith

[@LYFEAccounting]

Wow, I didn't realize the wraith was 6,000 pounds. Makes so much more sense now

[@Jiynzo]

Awesome quality and informative video, Thank you very much. Dream car is a gtr & hellcat.

[@Melatoninlullabies0313]

I did this with my lambo and Porsche

[@kerolverdi2660]

Santa fe diesel is my dream car, but I think X5 is good for my business.

[@thothheartmaat2833]

man: stands in front of green screen also man: doesn't replace background...

[@KMasterFRESH]

This guy needs more love

[@harrylove]

Liked and subscribed! Good stuff. Easy to listen to and great info!

[@ponleusoreyaa]

What is the difference in writing off the “lease” but not the loan payment? Isn’t it essentially the same thing? Could you please elaborate this or direct me to another video if there is one explaining the difference in the two?

[@zoemange6768]

I also have questions about this

[@johnyracercat]

I would say a lease gains you nothing long term. It's basically renting a vehicle. When you are making payments, a large portion of the payment is building equity in the vehicle. I paid $600 truck payments for 4 1/2 years and sold the truck for all my money back. If those were lease payments, I would have gained nothing but the use during that time frame.

[@MasterScreenPrints]

My dream car is 1947 Chevy fleetwood . But I like the Bentley and TAHOE

[@bebin73]

I have had 2 G550’s but never bought one new. I have a 2021 coming in late October and am going to use section 179 and accelerated depreciation. Did this with an F250 platinum for my property co this year.

[@Awakened_journeyz]

When you write the car off in October will u receive the money back the same year ?

[@bebin73]

@@Awakened_journeyz you don’t receive money back, you just have it negate that amount of tax liability. Meaning if you owe $30,000 in taxes and can deduct $20,000 through a vehicle, you’d only owe $10,000.

[@716swaggstar]

@@bebin73 Wasn't sure if I could write off a Truck for an investment property. Thanks

[@bebin73]

@@716swaggstar as long as an llc owns the property and truck, and you have legitimate need for a truck in order to run the business

[@ginasantiyan6842]

This is not entirely correct and a bit misleading. In your example, you mentioned that the company had 150,000 in taxes payable. Using a section 179 deduction, if a business use vehicle costs 150,000, that amount does not get deducted from your taxes payable of 150,000 but rather from income. The correct way to phrase it is if you buy a 150,000 business use vehicle, you multiply the cost by your marginal tax rate, say you are in the 24% bracket. That’s 150,000 x .24 = 36,000. You have saved 36,000 from your taxes payable of 150,000. That’s if the car gets 100% business use, if 50% business, then it’s (150,000 x .24).5 = 18,000. You will only get a deduction of 18,000 from your 150k payable.

[@darkbirdgraal2517]

Yeah you spend 150k to save 36k🤷‍♂️ to each their own

[@Insufficient202]

Great info my man!

[@gb4469]

Okay! This a lot of good information!

[@LYFEAccounting]

Glad it was helpful!

[@irismedinaelston]

Oh, honey. My wheels are spinning, in a great way. Thanks for the awesome content!

[@LYFEAccounting]

Thanks for watching! What’s are you plotting? 👀

[@HollowVisionProductions]

Great vid. Explain great

[@imilly8179]

This is good stuff. Im looking at getting the new Escalade. I think Im gonna give this a shot. Should I lease it vs buy?

[@denisewarren3356]

I am a realtor and my dream vehicle is the 2021 Cadillac Platinum

[@db60615]

This is one of the many ways people in corporate America stay rich without paying taxes while lining the pockets of luxury brands....

[@inter5123]

Taxes are just a portion of income. You still have to make money to owe the money.

[@db60615]

@@inter5123 you clearly don't get it.....this is why deductions exist! They write off and deduct so much that they end up owing little to nothing after they've raked in millions.

[@andrewl1621]

So I can claim tax exempt for the whole year then buy a 6k lbs car and, the write off amount will negate what I'd owe on income earned taxes?

[@hillaryschandorf3944]

Great content

[@ballerboyylive4692]

Bro I learned a lot wtf!! information is soo basic and simple but never would of thought of

[@LYFEAccounting]

Happy to help! Be sure to checkout our other videos to fill in any gaps.

[@kaylaeverhardt2854]

This is such great information! Thank you. I definitely liked and subscribed

[@LYFEAccounting]

Thanks for supporting the channel Kayla!

[@latoya7208]

Hi great video, does the vehicle have to be in the company name in order to write off the lease payments?

[@TenMinuteKQL]

If my LLC made $100,000 net profit, and I want to offset that with a Dodge Ram truck costing $50,000 (not clear if that is considered a "utility truck" or what defines that term). I can purchase one for cash, and deduct all $50,000? What is the 30-40% you mentioned?

[@elmatamoros85]

Thinking I might just get a G Wagon for my business‼️🙏

[@drjaye1962]

Thx my dream car is a Model 3, I want to use it when I retire to transport clients/patients to their Dr appt, and do KZbin vlogs for people over 60 yrs old to learn about tech…I have so many questions…peace

[@rosemarynezianya9599]

My dream car is range rover sport

[@LYFEAccounting]

Now thats a nice car :) and I think you can get it

[@Grumpyskater]

@@LYFEAccounting can I get a Ford Raptor?

[@leticiab503]

Does the car needs to be in the business name or the owner name ? Like the one you use for personal use ?

[@NerdGaming_69]

I just want to clarify for any non-accountants: you will still pay for the car, the deductions in this video reduce taxable income, which depending on your tax rate can be as little as $0.15 on the dollar. So the car is not free. Although, with enough miles, you could in theory get the car for free eventually with enough tax deductions depending on how many miles/years and your tax rate. I never use actual expenses for clients because the standard mileage rate is almost always better.

[@jmedia82]

You are exactly right! Which is why I recommend leasing a car or simply writing off miles or both. Section 179 is almost asking for an audit. And like you said taking the mileage deduction is much better in the long run. (Easier to defend as well).

[@ganilau4214]

Does the US not have a cap on deductions using the cents per km rate?

[@jmedia82]

@@ganilau4214 They do not have a cap, but if its like 40,000miles on one car than you may have to prove it if the IRS asks, but if you have 2-3 cars and you drove 60k miles in a year thats going to be really hard for them to prove that you don't so they will most likely do nothing at all. The rate for the miles deduction changes every year.

[@ganilau4214]

@@jmedia82 wow. Here in Australia the cap is $3600 using cents p/km

[@jmedia82]

@@ganilau4214 Since im in the US you essentially get to tell the IRS to go fuck themselves if you know the law & have the tenacity to it. But the rate changes from 0.545 per mile one year to 0.58 in another. The IRS changes it every year so its "fair".

[@sidequestplays4768]

You are definitely my new daily watch. Great content and no fluff or needless self promotion.

[@LYFEAccounting]

Awesome! Thank you!

[@2023Red]

Super video. Two questions please as we will start our S Corp in January 2022 and obtain the 6100 pound 4 Runner either in December or in January to use the accelerated depreciation 179 code. 1. Does the title need to be in the business name or in my name or does it not matter? 2. We plan to keep the SUV for five years and then trade it in. Is that long enough to avoid the deprecation recapture rule? Thank you!

[@johnyracercat]

I may do the exact same thing? What more did you find out?

[@dalzate09]

Hi, if I’m interested in using tax code section 179, does the vehicle need to be purchased under the business entity?

[@beugrant]

I want to know if we can also write off a portable building for the business? Can you make a video for it?

[@chefjosesoto]

I got the answer thank you in the video!

[@LYFEAccounting]

You're welcome!

[@zanderhuynh7998]

Thanks for video! If I only use 20 percent for business use, can I claim standard mile or section 179 or bonus depreciation?

[@JoeJacksonGT3]

Great content! I have a couple of questions if you don't mind? 1. What if you have a full-time job, but have an LLC for a side business that has two licensed owners, but one of those owners (me) uses their personal vehicle to make sales calls to try to earn business. Can I track mileage and wear/tear on my personal vehicle while making sales calls? 2. What impact would this have on my personal taxes if doing so, considering I also have a full-time job?

[@sdot7117]

1. You can just track the business related miles as he showed in the video. If you want to track actual expenses you can use the miles method. 2. Yes it will have an impact. Typically in a positive way, but consult with your CPA who knows your personal situation.

[@13579Josiah]

One slight distinction I don’t get but seems important. You say several times that doing these things will allow you to get your dream car for free. But I don’t see how that is. If you are writing your car expenses off, that reduces your AGI / tax bracket which will lower your taxes. But it’s not like all these expenses disappear. You’re just paying a little less taxes. For example. Say I make 100k a year and so my effective tax rate is around 20%. Aka I’m paying 20 of that 100k in taxes. But now say I buy and expense a 20k car. So my AGI becomes 80k. My tax rate drops to say 15% or 15k. I saved 5k in taxes. My car cost 20k. So in the end it’s like my car cost 20-5= 15k

[@kylemartin9954]

G Wagon for sure

[@nuhkjolpnh]

The model X weights max 5390 lbs. How are you planning to write it off for section 179 ?

[@boatswainsm8]

I didn't quite follow you when you spoke of Uber drivers, is it better to lease or buy the car outright when it comes to driving for Uber?

[@KorraTheFrenchie]

So if you have a $40k write off on a truck for example and don’t have $40k in tax liability, does that mean you get money back come tax time?

[@michaeldemasi2199]

Awesome video - Thanks alot!

[@LYFEAccounting]

No problem Michael, I hope you consider subscribing

[@sethmoody9884]

Are you able to do the 6,000 lbs right off? And do the yearly expense right offs like gas and insurance and stuff?