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Mileage vs Actual Vehicle Expenses | Best Way to Write Off a Car

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Keeper - Taxes made magical

Keeper - Taxes made magical

Күн бұрын

Keeper is delightfully smart tax filing software that’s especially useful for people with 1099 contracting & freelance income. Connect your bank to automatically uncover tax breaks & personalize.
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Are you a freelancer, contractor, or self-employed person who sometimes uses your car for work? Then you have two options for writing off your car expenses: the standard mileage method and the actual expenses method.
This video will help you figure out which is the best way for you to write off car expenses. If you choose the standard mileage method, you’ll have to track how much you actually drive for work, and multiply each mile by a standard amount set by the IRS. This is $0.56 per mile in 2021, but it changes every year.
The actual expenses method, on the other hand, doesn’t require you to track all your miles. Instead, you can deduct a percentage of all your vehicle-related expenses - not just gas, but insurance, maintenance charges, license and registration fees, car depreciation, and more. We’ll give you the full list in the video!
When it comes to standard mileage vs actual vehicle expenses, most self-employed people want to know: Which method will help them save more? To figure this out, we dive into two examples - one for typical drivers, and one for heavy drivers (like rideshare and delivery drivers).
We also give you a checklist for determining whether the standard mileage method is right for you. (Hint: Your job is a factor, but so is your car!)
TIMESTAMPS
0:00 - Intro
2:02 - The two ways to deduct vehicle expenses
2:53 - Actual expenses method
3:26 - Example #1: Typical drivers
5:12 - Example #2: Heavy drivers
6:08 - Which method is right for me?
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MORE ABOUT CAR EXPENSES AND MILEAGE
Ultimate Guide to Car Tax Deductions and Mileage www.keepertax....
Mileage vs. Actual Expenses: www.keepertax....
The Quick Guide on How to Track Miles for Taxes www.keepertax....
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Пікірлер: 141
@wakeywakey8603
@wakeywakey8603 9 ай бұрын
Thank u for including rental fees in the list of deductibles. Many people seem to think u have to OWN or lease the car to claim standard mileage deduction. They don't understand that financing a car, leasing a car or renting a car long term to drive for rideshare all means somebody else owns the vehicle. The driver simply gets to drive it as long as they make weekly or monthly payments. Nobody actually owns the vehicle unless it's completely paid off & you possess the pink slip. If the bank can reposses "your" car for non-payment, that means the bank or whatever institution is the OWNER. Even some Turbo Tax experts get it twisted. Leasing a condo versus renting a house is likewise the same. You're not the owner. Same thing with people paying a mortagage. The house belongs to the bank. Just to use a parallel example of ownership vs. non-ownership.
@lindalee0711
@lindalee0711 3 ай бұрын
OMG this is way over my head! 200 miles on my new vehicle. I am not paid to the pick up point or after the drop off which is where the mileage rack up it has to pencil.
@melissavillarreal4882
@melissavillarreal4882 2 жыл бұрын
You should totally make a video for truckers and hotshot drivers. We drive over 100k a year. Would really help the transportation community. Especially the ones starting off. Thanks for sharing so much info.
@KeeperTax
@KeeperTax 2 жыл бұрын
Thanks for watching, Melissa! Are there any burning questions you'd love to have answered in a video? What did you find the more confusing about your taxes when you were first starting out?
@p.3914
@p.3914 2 жыл бұрын
Great presentation. You saved me from IRS audit. Thanks
@The22j
@The22j 4 ай бұрын
What if I didn't write off any of the miles driven for work since 2020? Am I able to write off all those previous 2020-2023 miles? Because of you, I will finally be smart and start saving some money, thank you!
@dab795
@dab795 11 ай бұрын
Thank you!!! Very good info - stayed to the end
@pongop
@pongop 6 ай бұрын
Thank you for another super helpful lesson!
@EtelrraS
@EtelrraS 3 ай бұрын
Thanks for the info
@hectortoro7412
@hectortoro7412 Жыл бұрын
I am contracted as a 1099 and have an office set up in my home. I leave my home office for appointments with clients at local hospitals and then return back to my home office. I have only claimed mileage going to these appointments and never the return trip back to my home office. Is that correct or should I be claiming the return mileage as well? Thanks!
@KeeperTax
@KeeperTax Жыл бұрын
Great question, Hector! If your principle place of work is your home office, then you can deduct both legs of the trip between your home office and the hospitals where you meet with clients.
@nitahall2714
@nitahall2714 26 күн бұрын
So I jus writing off gas, insurance and car repairs . I add up my insurance payments for the year, my gas and if I use my car 30% of the time then I use the actual method correct
@zinaspicer5058
@zinaspicer5058 2 жыл бұрын
Thank you for all the great tips because I drive for Uber and Lyft full time 😀👍🏾
@KeeperTax
@KeeperTax 2 жыл бұрын
Thanks for watching, Zina! If you're on the lookout for more tax resources, we've got a tax education center just for Uber drivers right here: www.keepertax.com/uber-tax-education-hub
@robertesquivel4111
@robertesquivel4111 2 жыл бұрын
Thanks for the info. Easy to understand and very informative.
@PauloManlapaz
@PauloManlapaz 2 жыл бұрын
Hello! I work two gigs that I receive a 1099 from. I drive a ton to get to these workplaces. Am I able to write off these miles using the standard mileage rate?
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Paulo! Great question. Unfortunately, if you're driving from your home to a workplace, you wouldn't be able to write off those miles - they would count as "commuting miles," not business miles. If you're driving from your first workplace to your second workplace, however, that would count.
@shehzadchowdhury8327
@shehzadchowdhury8327 6 ай бұрын
If we choose one we can’t switch the the folllwing year right??
@jmanciaz
@jmanciaz 2 жыл бұрын
ur vids are the bee's knees. thank you
@BlackQueen64
@BlackQueen64 2 жыл бұрын
Can you switch between mileage to Expenses? Can you choose between them each year?#TaxKeeper
@KeeperTax
@KeeperTax 2 жыл бұрын
Really good question! If you choose expenses, you'll have to use that method for the rest of the vehicle's life. Choosing mileage, though, will let you switch between the two methods in future years. Here's an article if you'd like to learn more! www.keepertax.com/posts/mileage-vs-actual-expenses
@jaydee7369
@jaydee7369 2 жыл бұрын
Thanks just what I wanted to know.
@TomMendoladrums
@TomMendoladrums Жыл бұрын
Excellent break down. Thank you!
@KeeperTax
@KeeperTax Жыл бұрын
Thank you for watching, Tom!
@michellethompson5929
@michellethompson5929 2 жыл бұрын
100,000 miles a year driving. oil changes every month. outrageous amount of gas expense. am I better off with miles or exact? #KeeperTaxUniversity
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Michelle! Since you drive so much for work, you'd likely be better off tracking your miles. If you'd like to see a couple more examples of how miles vs. actual expenses look in practice you can check out this blog post: www.keepertax.com/posts/mileage-vs-actual-expenses
@micgaines
@micgaines 6 ай бұрын
Hello Great info I’d like to know.. after choosing the standard deduction for my trucking company what other expenses should I report?
@joelturopreneur6804
@joelturopreneur6804 Жыл бұрын
For Turo, a car sharing service. What miles are we claiming? Do we claim the amount of miles the renter drives our car? Do we also claim when I am delivering and picking up the car from a renter?
@KeeperTax
@KeeperTax Жыл бұрын
Hey Joel! We just published a guide to Turo taxes that might help you out. Here it is! www.keepertax.com/posts/turo-taxes
@joelhogu4684
@joelhogu4684 Жыл бұрын
@@KeeperTax thanks
@MrEjohnston
@MrEjohnston 2 жыл бұрын
I bought a used Chevy Volt. They are very low maintenance. Since you down shift to regenerate a charge to the battery, my brakes are going to last forever. Since I do most of my dashing on purely electric, I buy very little gas, and the oil life lasts forever. So, your statement that electric cars are expensive to maintain, simply isn't true.
@wakeywakey8603
@wakeywakey8603 9 ай бұрын
What about student loans? Can i write off the entire interest amount due on the SUM of my student loans? Or just the interest amount I paid in a given tax year? There's a big difference.
@RealwithGod510
@RealwithGod510 8 ай бұрын
Willl this help w-2 workers?
@colleennicole7835
@colleennicole7835 10 ай бұрын
If I am remote or hybrid and my primary work location is from a qualifying home office, and I occasionally drive out to the company's corporate office - is that mileage deductible?
@KeeperTax
@KeeperTax 10 ай бұрын
Hi Colleen! Great question. Since your home office is your principal business location, trips to other work-related locations (like a client meeting or an occasional trip to the office) would be deductible. Read more here: www.keepertax.com/posts/business-miles-vs-commuting-miles
@donyajoines9255
@donyajoines9255 2 жыл бұрын
You stated that under Actual Method you can deduct "Car Payments"... I am sorry, but that is wrong... You went on to state you can deduct Vehicle loan interest and yes you can... That is the ONLY portion of the car payment that you can deduct because you are depreciating the vehicle. If you try to deduct the entire car payment and depreciation you are "double dipping" on the expenses... Auditors will disallow the car payment and ONLY allow the interest paid & depreciation...
@KeeperTax
@KeeperTax 2 жыл бұрын
That's a great point, Donya - thank you for taking the time to add this helpful clarification! To recap: You can deduct your car loan interest as a simple Schedule C expenses. But to deduct the principal portion of the loan, you'll need to depreciate the vehicle and report it in Form 4562. (We've got an article on depreciating your vehcile here: www.keepertax.com/posts/car-depreciation-tax)
@trunks7604
@trunks7604 Жыл бұрын
Your videos are awesome !
@KeeperTax
@KeeperTax Жыл бұрын
Thanks so much for watching!
@kwakuking11
@kwakuking11 Жыл бұрын
Great info, thank you.
@KeeperTax
@KeeperTax Жыл бұрын
Thank you for watching!
@BodyworkASMR
@BodyworkASMR 2 жыл бұрын
I have a question about section 179. here's the example: I am married filing jointly. My sole proprietor business made 10k and my wife made 200k from a different w-2 job. If I were to buy a section 179 eligible vehicle for 50k, can I write off the entire 50k or only 10k from my business? Thanks in advance, no one has been able to answer this for me.
@KeeperTax
@KeeperTax 2 жыл бұрын
Great question, Alan! Section 179 can get pretty confusing and technical. One thing to know is that there's actually an annual limit - regardless of your income, you'd actually be limited to $18,200 for the first year anyway. To answer your question, though, the Section 179 deduction is limited by your net income, so you'd only be able to take the $10,000 from your business. However, you've got another option for writing off the vehicle: bonus depreciation. This one ISN'T limited by your income, but DOES have the annual limit in place. So if you take bonus depreciation, you'd be able to write off $18,200 in the first year (and you can depreciate the rest normally). Hope that helps!
@gbuilds2667
@gbuilds2667 2 жыл бұрын
So I get in a debate with this all the time. So Amazon flex. It’s a 1099, your consider a business or a small business or home business. I’m told I’m wrong because I say you can track miles from your home, to Amazon. And first stop and last stop back home. So am I wrong because your using your car the entire time? . I’m not taking about personal use after your done working.
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi there. Thanks for your question! I’m afraid you aren’t going to like my answer very much. Unfortunately, the mileage to your first stop and from your last stop can’t be claimed. It’s a frustrating rule, but technically the IRS considers those commuting mileage. Mileage only counts as business if both the starting point and the destination are work-related stops. So driving form the warehouse to a delivery would qualify, but driving from the delivery location back home would not. You can read more about the difference between commuting and business mileage here: www.keepertax.com/posts/business-miles-vs-commuting-miles
@gbuilds2667
@gbuilds2667 2 жыл бұрын
@@KeeperTax thanks
@imhnic0007
@imhnic0007 Жыл бұрын
Hey me again lol....is there a limit on the amount of write off....example a person driving 40k mi per year would have a larger amount vs 30k
@KeeperTax
@KeeperTax Жыл бұрын
Hey, Oneill! There isn't a specific limit on the amount of write-offs you can claim, because - like you point out - people doing certain types of work will naturally rack up more expenses. That extra 10,000 means a lot more spending on gas, for example! The thing to watch out for is if your write-offs exceed your income for more than three out of every five years. If that happens, the IRS might decide you're not in it to make money and your business is actually a hobby - which means no more write-offs. But this isn't a hard and fast rule. The IRS will look at your business on a case-by-case basis if it comes down to it.
@djbinkbrizzy8118
@djbinkbrizzy8118 2 жыл бұрын
thank you
@GodFirst701
@GodFirst701 2 жыл бұрын
What about if you just Finance a car for personal use and you have to pay for parking gas insurance car wash & etc ?
@KeeperTax
@KeeperTax 2 жыл бұрын
Do you ever drive the car for freelance or independent contracting work?
@bobbys2643
@bobbys2643 2 жыл бұрын
Can you claim depreciation if you're leasing?
@KeeperTax
@KeeperTax 2 жыл бұрын
Great question, Bobby! Unfortunately, you can't - depreciation is only for vehicles you own. If you'd like to learn more, here's an article on the ins and outs of writing off car leases: www.keepertax.com/posts/car-lease-tax-write-off
@bobbys2643
@bobbys2643 2 жыл бұрын
@@KeeperTax thank you!! :)
@rhaydsouza0912
@rhaydsouza0912 2 жыл бұрын
Question: I have a personal car I have been using for 3 year. Next year my wife plans to user this car for her business (sole proprietor) 100% of the times. How would I calculate depreciation? Do I need to sell the car to her first or can she take the estimated cost of the car from KBB and calculate depreciation via actual expense method based on the KBB number?
@KeeperTax
@KeeperTax Жыл бұрын
Check out this article to learn more about saving on your tax bill after buying a car: www.keepertax.com/posts/is-buying-a-car-tax-deductible
@manuelvalladares5004
@manuelvalladares5004 Жыл бұрын
Hi I loved this video, I have one question. My husband uses his car to go to and from a job site. He drives to the office then drives to the site and then back to the office to clock out. Can he qualify for that mileage reimbursement?
@KeeperTax
@KeeperTax Жыл бұрын
Hi Manuel! Thank you for your question. Commuting (like going from home to the office) does not count as business mileage. However, traveling within the work day (like going from the office to a job site and back to the office) does count! You can read more about that here: www.keepertax.com/posts/business-miles-vs-commuting-miles
@thelmafletcher4769
@thelmafletcher4769 4 ай бұрын
Keeper Tax University
@Jendoof
@Jendoof Жыл бұрын
#KeeperTaxUniversity Really great info thanks for the encouragement!!
@dannymelgarejo8805
@dannymelgarejo8805 2 жыл бұрын
where would the cell phone bill fall under? Could I use the standard mileage method and write off my cell phone as well?
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Danny! You can put it under Part V of your Schedule C, for "Other Expenses." And yes, you can absolutely the standard mileage method and write off your cell phone as well! It doesn't count as a car expense, since many people who don't drive for work still use their phones for business purposes.
@nathanielcarocaro
@nathanielcarocaro Жыл бұрын
Hey hey (: What can I write off if I drive to work and back home?
@KeeperTax
@KeeperTax Жыл бұрын
Hi, Nathaniel! Unfortunately, driving to work and back home is generally considered "commuting," which isn't tax-deductible. Here's an article where you can learn more: www.keepertax.com/posts/business-miles-vs-commuting-miles Of course, there are some exceptions! For example, if you're a rideshare driver, and you pick up a passenger who's heading in the direction of your home, that section of the drive would be tax-deductible.
@CraftAdventureTravel
@CraftAdventureTravel 2 жыл бұрын
Hi there! I have two new businesses that I am starting that both will be using my personal car. I have an old car that requires a lot of repairs so I feel that actual expenses might be the way to go. My personal use milage is low but business milage will be high. Any thoughts on how to juggle the deductions for 2 businesses plus personal use without getting into hot water. My businesses will be two sole owner LLCs. Thank you so much. You rock.
@KeeperTax
@KeeperTax Жыл бұрын
Hey! Yes, the typical driver gets a larger deduction using the actual expenses method. But the heavy driver saves more by tracking mileage. Check this out for more details about how to handle expenses for your work-related driving www.keepertax.com/posts/mileage-vs-actual-expenses
@jourdanjohnson4357
@jourdanjohnson4357 2 жыл бұрын
Is it true that we have to put our car in our business name to use the actual method
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Jourdan! There's no need - you can use the actual method as a sole proprietor even if you don't have a DBA
@toriw2879
@toriw2879 2 жыл бұрын
I'm trying to decide whether to finance or lease my next business vehicle. I barely drive, but when I do sales pitches then I want to use a business vehicle for it. It seems like mileage wouldn't work for me, but what's the difference in how you deduct a lease payment vs a finance payment? Is there a difference or would I apply it the same way by using the actual expense method?
@KeeperTax
@KeeperTax 2 жыл бұрын
Great question, Tori! There actually is a difference in how you deduct lease vs. loan payments. The business-use percentage of your lease payments is fully deductible, while you can only deduct the interest portion of your loan payments (again, the business-use percentage). Here's an article about it: www.keepertax.com/posts/can-i-write-off-my-car-payment
@1leslieisire
@1leslieisire Жыл бұрын
If your buying a used car can you write off payments
@KeeperTax
@KeeperTax Жыл бұрын
If you bought this vehicle using a car loan, you won't be able to write off your car payment. However, you can write off a portion of your car loan interest. Your loan interest counts as a car-related business expense, just like gas and car repairs. Also, you can depreciate the cost of the car itself, even if you're still paying it off with a loan. Check this out for more details: www.keepertax.com/posts/can-i-write-off-my-car-payment
@BSReese93
@BSReese93 2 жыл бұрын
What if I’m going drive for instacart for about 15 to 20 hours per week and still work at w2, which one should I do 🤔
@KeeperTax
@KeeperTax 2 жыл бұрын
Hey, Reese! If you're driving for Instacart part time, chances are good that the actual expense method will save you more! We've found that full-time drivers are the most likely to benefit from tracking miles. Here's an article where you can learn more! (There are even a few scenarios where we calculate the savings for you): www.keepertax.com/posts/mileage-vs-actual-expenses
@kathyp7868
@kathyp7868 2 жыл бұрын
Hi can you use the Actual Vehicle Expenses the first year you purchase your car and it use car and you paying car note.
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Kathy! You can definitely starting using the actual expenses method the year you purchase your car. This is true whether you bought your car with a loan, or own it outright. If you choose this method in the first year, you'll have to keep using it for the rest of the car's life. Here's an article about it: www.keepertax.com/posts/mileage-vs-actual-expenses
@kathyp7868
@kathyp7868 2 жыл бұрын
@@KeeperTax Thank you
@HeavenNY
@HeavenNY 2 жыл бұрын
But once you choose a particular way you can’t use the other way the following year, correct? So if I used actual expenses last year I can’t use standard deduction this year?
@KeeperTax
@KeeperTax 2 жыл бұрын
Great question! Technically, it's possible to switch from the standard mileage deduction one year to the actual expenses method the next year - but not the other way around.
@HeavenNY
@HeavenNY 2 жыл бұрын
Well last year the tax guy used my car value as my deduction, I believe. And I used that same car for the beginning of 2021 (Jan 1-April 13). On April 13 I purchased a new vehicle and got rid of my other car. So now how do I do my taxes with the two vehicles?? Also, another person that does the same gig work said his CPA uses the standard mileage deduction but he also claims vehicle try like oil changes and new tires on his taxes.
@jolieharding8482
@jolieharding8482 2 жыл бұрын
Thank you for your video. I have a question. I drive as a contract worker for a local company (I do not get paid hourly and am not treated technically as an employee). The Owner of the shuttle company lets me borrow his shuttle. I pay for gas. If I don't own the vehicle yet pay out of my pocket for gas how then should I write off of my gas? I hope this made sense. Any help on this would be greatly appreciated.
@dariene12
@dariene12 2 жыл бұрын
Keep receipts from the gas stations which you payed for gas. Write down date, time, and vehicle on the receipt to be extra careful. But for the most part it works the same way she explained just report it to the irs
@KeeperTax
@KeeperTax 2 жыл бұрын
Great question, Jolie! Darlene is right: You can still claim the gas. But it wouldn't work in quite the same way as reporting vehicle expenses for a car that you own or lease. You can actually list these expenses on Schedule C as "Cost of Goods Sold," since it's a direct cost of working for the shuttle company. (Another option would be asking for the owner to reimburse you, but not sure how doable that is!)
@jolieharding8482
@jolieharding8482 Жыл бұрын
@@KeeperTax Thank you for your response! This helps.
@humbledzata1011
@humbledzata1011 Жыл бұрын
so if I may ask, if I spend 3800 on gas for business for the whole year, is that money going to be refunded to me? the whole 3800?
@KeeperTax
@KeeperTax Жыл бұрын
Hi, there! Not quite - business write-offs, like for gas, don't directly lower your tax bill. They actually lower the amount of income you get taxed on! So for example, if someone made $40,000 and spent $3,800 on gas for work trips, they'd be able to subtract that $3,800 from $40,000 and only get taxed on $36,200! That gets them a lower tax bill, but not $3,800 lower.
@humbledzata1011
@humbledzata1011 Жыл бұрын
@@KeeperTax I understand. Thank you very much.
@lalaelena
@lalaelena 2 жыл бұрын
So If claim mileage, I cannot also claim any regular car expenses like insurance or liscence renewals? I would have to choose now, as I got a certified pre-owned car in last year, and it states that what i choose will have to stay that way for the remainder of the life of the car? I got a 6 year loan and a 10 year warranty...?? Does this make sense... kinda overwhlemed, was going to file my own taxes, but now i am trying to find a good CPA. ... any suggestions is appreciated.
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Elena! Car write-offs are confusing because there are a few expenses you CAN actually claim on top of mileage, including DMV fees like license renewals. But most expenses, like insurance, can't be claimed if you claim mileage. Here's an infographic that breaks down what you can and can't claim with mileage: assets-global.website-files.com/5cdcb07b95678db167f2bd86/5ed05d49d081dfa436ba90f6_t4IbAhHXen_0SUnUuCpGGoDMEFt0EcRm_QIClF--6nocmpo5uvtWUzU2-gEP9VVmM3j3yDv8se998o490kilALsjCgAL7eM6c4d-Lp_DZOnl2PtvljJdIdDw13UigZNgy7Imai_8.png I hope that helps!
@spaghettimeatball
@spaghettimeatball Жыл бұрын
#KeeperTaxUniversity Great Vid. Thanks for the info.
@chrisbellvargas6845
@chrisbellvargas6845 2 жыл бұрын
Hi came across your channel and learned a lot so far ! But my question is I use a financed car to do instacart can I write off the business use of the car payment ? I’ve had the car for over 3 years but I just started doing instacart in 2021
@KeeperTax
@KeeperTax 2 жыл бұрын
Really good question, Chrisbell! Yep, you can write off the business-use percentage of your car lease. Here's an article where you can learn more: www.keepertax.com/posts/car-lease-tax-write-off
@HeavenNY
@HeavenNY 2 жыл бұрын
How can you do instacart with a leased car? Aren’t you putting way too many miles on the car with instacart? I thought If I leased a car I’d have to pay 25 cents for every mile I used it over 10,000 miles
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi Chrisbell, I just saw that your comment now reads "financed car," not leased! My apologies if I initially misunderstood. If you're taking about a car that you bought with a loan, you can't fully deduct the business-use percentage of your loan payments. You can, however, deduct the business-use percentage of your auto loan insurance! Here's an article where you can learn more: www.keepertax.com/posts/can-i-write-off-my-car-payment
@KeeperTax
@KeeperTax 2 жыл бұрын
@@HeavenNY Good question! Some people might do Instacart purely as a side hustle, in which case, using a leased vehicle is probably fine. But in this case, I wonder if I misunderstood OP's question. Thanks for bringing it to my attention again!
@tonysorganicplate2999
@tonysorganicplate2999 9 ай бұрын
#KeeperTaxUnivercity
@jamezbox
@jamezbox 2 жыл бұрын
Can your tax deductions be more than the taxes you owe? I want to put in insurance and cell phone bills for my instacart taxes but it would be way more than the taxes i owe
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Jared! That's definitely possible - especially if you're also working a W-2 job. In that case, you'd be entitled to a refund.
@TonyNovation
@TonyNovation 2 жыл бұрын
#keepertaxuniversity My big question is how to I track these expenses in quickbooks online since I'm likely paying for them with a personal credit card and that personal account is not attached to my QBO. Do I enter them in manually? In essence, what's the best way to track these expenses?
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Tony! While we're not QBO experts, we do offer an app that helps folks like you track their expenses! It's a solution for freelancers and business owners who buy everything with one card - business and personal. Our app will scan your card for purchases for write-offs automatically, and we'll also assign you a bookkeeper to verify purchases that the software can't categorize on its own. You can try the app out here: keeper.tax/e/tXlXVjOnmkb Or learn more on our website here: www.keepertax.com/
@janetdavis6959
@janetdavis6959 2 жыл бұрын
How do I calculate depreciation of my car?
@KeeperTax
@KeeperTax 2 жыл бұрын
Great question! That depends on your business-use percentage for the car - the amount of time you drive it for work-related, versus personal, trips. You'll take that business-usage percentage and multiply it by your basis, which is the total price of the car. Cars are depreciated over five years. Actually calculating the depreciation amount works differently depending on whether your business-use percentage is at least 50%. If it's less than 50%, you just divide your basis by 5 to get the amount you can write off every year. If it's more than 50%, you can front-load the deductions a little bit - writing off 35% in the first year, 26% in the second, 15.6% in the third, and 11.7% for the remaining two years. That's a lot of information to take in, but we do have an article on car depreciation! www.keepertax.com/posts/car-depreciation-tax It's got a more detailed breakdown, including a handy table showing all of this
@NeicyJ1990
@NeicyJ1990 2 жыл бұрын
I'm a 1099 worker. I want to use keep tracker but my credit union isn't on plaid. Is there an alternative way of doing things ?
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Neicy! Unfortunately, we can only support banks that are on Plaid. However, you can still enter your expenses manually if you'd like to use the app.
@NeicyJ1990
@NeicyJ1990 2 жыл бұрын
@@KeeperTax ok, how do I manually enter my information ? does this included adding my routing and account number ?
@KeeperTax
@KeeperTax 2 жыл бұрын
@@NeicyJ1990 Since your credit union isn't on Plaid, there's no need to add your routing number or account number anywhere. You'd have to add your expenses as if they were cash purchases. Feel free to reach out to support@keepertax.com for more questions on using the app!
@NeicyJ1990
@NeicyJ1990 2 жыл бұрын
@@KeeperTax Thank you
@l.austin2371
@l.austin2371 Жыл бұрын
How does this work if I'm a 1099 travel nurse from ks who travels to MO, NE, and IA for work for periods of time. How would the mileage be calculated from home wher3 my home office is?????
@KeeperTax
@KeeperTax Жыл бұрын
Good question! It sounds like your tax home is in Kansas, and you're having to take out-of-state work trips, so you'd be able to write the miles you drive to get to these short-term assignments, as long as they last a year or less. You can count the miles between your home and your temporary work locations.
@l.austin2371
@l.austin2371 Жыл бұрын
@@KeeperTax yes Out of state and out of Town would that qualify too? Can I count those miles as well the out of town miles?
@l.austin2371
@l.austin2371 Жыл бұрын
@@KeeperTax As long as they're temporary work locations I can count My mileage correct
@KeeperTax
@KeeperTax Жыл бұрын
@@l.austin2371 That's right! They shouldn't be assignments that last a year or more
@KeeperTax
@KeeperTax Жыл бұрын
@@l.austin2371 If you're driving out of state to a temporary work location, that should count, yes!
@alveocampo8491
@alveocampo8491 2 жыл бұрын
Hi, can I write off mileage if I don't own the car?
@KeeperTax
@KeeperTax 2 жыл бұрын
Hi, Alvo! If you lease the car, it's safest to claim actual car expenses. You can directly write off a portion of your fuel - and even part of your lease payment. Here's an article about car lease write-offs if you want to learn more: www.keepertax.com/posts/car-lease-tax-write-off
@trunks7604
@trunks7604 Жыл бұрын
# hashtag university !
@ginocanessa5689
@ginocanessa5689 2 ай бұрын
#KeeperTaxUniversity
@twilliams231
@twilliams231 Жыл бұрын
#keepetaxuniversity
@DRSLLCDelgadillo
@DRSLLCDelgadillo Жыл бұрын
#keeperTaxUniversrity
@EricasTrifectaWellness
@EricasTrifectaWellness 2 жыл бұрын
#keepertax
@beecome6338
@beecome6338 2 жыл бұрын
#Keepertaxuniversity
@marlennecastillo7755
@marlennecastillo7755 6 ай бұрын
🙏🏼🎉
@Brain-puzzles.
@Brain-puzzles. 9 ай бұрын
#keepertaxuniversity
@albertphillips6839
@albertphillips6839 Жыл бұрын
keepertaxuniversity
@user-gs4il8pf1p
@user-gs4il8pf1p 7 ай бұрын
#KeeperTaxUniversity
@rileybuck218
@rileybuck218 Жыл бұрын
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@JamieLBranch.TaxPro
@JamieLBranch.TaxPro Жыл бұрын
#KeeperTaxUniversity
@Angelmist1180
@Angelmist1180 Жыл бұрын
#KeeperTaxUniversity
@evdarden
@evdarden 2 жыл бұрын
#KeeperTaxUniversity
@RicardoRiver4
@RicardoRiver4 Жыл бұрын
#keepertaxuniversity
@mariadesalvo776
@mariadesalvo776 2 жыл бұрын
#keepertaxuniversity
@zelda302
@zelda302 2 жыл бұрын
#keepertaxuniversity
@GeorgeWashingtCarver
@GeorgeWashingtCarver 2 жыл бұрын
#keepertaxuniversity
@jamesguyer5162
@jamesguyer5162 2 жыл бұрын
#keepertaxuniversity
@jaybird2384
@jaybird2384 2 жыл бұрын
#keepertaxuniversity
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