Tax 101 - What are Write Offs Deductions and expenses - Flying Wheels

What is the difference between expenses write offs vs deductions and how to write off a vehicle tool or piece of equipment for your business. Tax Code Law Section 179
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[@martymcfly4838]

Took your advice. I.R.S has me in handcuffs right now. 😂

[@FlyingWheels]

🤣

[@fusiongaming8281]

I’d recommend a stick of butter.

[@jeffmac3071]

Tax advice from a used car dealer. Hmmmmm

[@Duraputer]

He said to ask an accountant first.

[@EdwinGuzmanRD]

What year is the Denali ?

[@twmcmahan]

Point for non business owners: A tax deduction/expense/write off doesn't mean you got the item for free. If you buy a $100,000 truck, you reduce your income by $100,000. That equates to saving $33,000 on your taxes. But you are still out of pocket for $67,000. Don't downplay corporate charity "oh, he gave $1 million to charity, but it's a tax write off." Yeah, it is, but he's still out of pocket at least $850,000.

[@johnnysouza5601]

Bingo!

[@marklittler784]

Yeah but who's running the charity and how much are they paid and where does the rest go and to whom? Probably rest homes for underprivileged company directors in the Virgin Islands.

[@jmorris023]

Well you really need to look at what the donation actually is. There’s a great LA times article about charitable donations in artwork and how the IRS just lets the rich screw us. Total rich person scam, rich guy buys some fine art, hold it for a few years, the. gets it appraised for 4x what rich guy paid for it, then he donates it to a charity and take the 4x tax deduction against his income. Rich guy actually makes money on his donation. Always be suspect of big donations unless you see the cash.

[@twmcmahan]

Of course there are scams. But when rich guy gives a million dollars to an unattached (arms length) charity, it shouldn't be discounted "oh its just a tax deduction" that's not how it works. If course family foundations where you end up funneling money back to yourself and/or your family members isn't what im talking about.

[@FlyingWheels]

Thank you for clarifying that for everyone

[@markhoffman5719]

One of the best used cars I bought was a car the dealers wife used for 3 years as her daily driver. Lots of receipts for work they did to it. Older Cadillac, but ran like a top.

[@Jdhomie]

Hey Craig! I just want to say thank you for your detailed and honest videos about owning a used car dealership. I'm learning a lot about car sales. I'm 24 years old who's just starting into the business. I can't express enough how thankful I am for you kind sir. Recently just suscribed to you. Didn't know how youtube work sorry! I am now a suscriber and I got the notification ON!

[@Thevideogametheory]

Hey its nice to see a fellow NH guy doing so well!

[@webmastersof]

Thank you Craig! You are one of the very best channels on KZbin! A lot of useful information for everyday life. Love you and your family (flying-wheels) Keep the videos coming.

[@curtiscarpenter7423]

I really do enjoy the content. I learn something new thanks for the info. I don't own a business but it's nice to know what go on behind the scenes of a business owner

[@sky-fall-media9320]

I am very Proud of you....Plus I've been with you from the Start!

[@EagleAutoshop]

Craig, thanks for another cool video. I will be applying some of the suggestions and some I have already to my auto repair business.

[@jonathanriggs6564]

I really appreciate this video, I've always wondered about this, but trying to learn stuff like this by reading is garbage. Thank you very much

[@johnnycelis7318]

I think I can speak for everyone when I say Thank you for using your life lessons to help us better our personal lives you’re a great content creator who uses his community for greatness when you could be using your channel for solely personal benefit and I thank you for that!

[@joeyjohnson7795]

Hey Craig, I used to work as a delivery driver for a local mom and pop company. When one of my wise guy coworker asked the owner what he writes off on his taxes. Owner replied, "every damn thing I can." A week later his wife, who does work a solid 40+ hrs doing the HR paperwork and filing the PR role, showed up in a brand new Expedition with the company logo on the grill. Cha-ching.

[@marklittler784]

Obviously claims for the wife against tax too.

[@cecho9367]

Excellent video about business expenses. Very glad I found your channel. I’m also a car guy so the content is very interesting to me but I’m also a small business owner so the “explanation for dummies” about section 179 was great. Thanks. Keep up the great content.

[@FlyingWheels]

Thx for watching!

[@grantflavel9822]

Life of palos. I have asked him many times to watch you content. You are right up there with the best. Keep up the great content.

[@robertsteele4384]

I always enjoy your content! Keep it the good work!

[@jrebuilds2]

Thank you bossman! I like this type of videos as I learn a lot and get a better perspective. 😎👍🏻👍🏻

[@presleyjeremiahsmith4668]

Amazing video! Thank you for answering my question! :)

[@guillermoyelamo5816]

Liked the video, already a sub and here’s my comment saying: Thank you.... very much! Keep those vids coming!

[@WesFisher]

Thanks for dropping some gold nuggets

[@douglasfowler2899]

Another great how too video Thanks Craig My Mustang 🐎 still looks great Thank to Flying Wheels and German detail skills

[@FlyingWheels]

Thx!

[@SigvaldsAmazon]

14:00-15:15 is probably the most important part of this video. You have almost NO protection when using a debit card. Credit Card companies offer more protection because it is THEIR money that is tied up during a fraud investigation. Just make sure you pay it off at the end of the month and you won't pay any fees/interest but you will earn reward points!

[@clivefutube]

The thing to be careful about is when you have someone else on the credit card account especially if they are family, buying for the business , there is a big different between a second card as authorised user or joint account holder as to who is responsible and also how it is reported to the credit bureaus especially if the business goes south and card carries big balance, then it dings both of you.

[@DookyShoes1]

That's not 100% accurate. If your debit card has a Mastercard or Visa logo, you have the same protection as a credit card. The downside is as he mentioned in the video, a fraudster can clean out your account. You'll get the money back within 10 business days (it's a federal regulation) but if you're broke 10 business days is a looong time

[@danielB0314]

Hey Craig, love your channel! Would you be able in one of the videos how's the car financing works? I know you had a video about the bad credit, but in regular sales, do you finance? Is there's a bank that finances people for you? Or people already coming to you with a financial plan from their own bank?

[@exploreoutdoors3978]

This is was actually really helpful

[@bigd9848]

Excellent video with great advice.

[@raymondreiff8170]

That's a nice snow shovel 😎👍

[@tonecapone8392]

great tips about using credit instead of debit in certain situations

[@bencoyle1869]

Haha I almost cried when you scuffed the Denali with the trailer hitch

[@jaybenjamin2739]

Woohoo I’m the first one to comment Watching all the way from co mayo in Ireland 🇮🇪

[@Titoo.1]

Nah the live chat had a comment a good 20 minutes before you

[@henrycollins2478]

Man. I went to Ireland a few years back. I miss travel

[@marklittler784]

You must have good eyesight watching from that distance.

[@kaimcnally1674]

Watching from co down, small world

[@FlyingWheels]

@@marklittler784 🤣🤣 #dadjoke

[@GroundedFlyboy737]

It's not how much you make, it's how much you keep. Great video, thank you.

[@FlyingWheels]

Good advice!

[@colinspence6383]

@@FlyingWheels See me after class and we can go over your spelling: correct word is ADVICE!!

[@mcalbols]

i went ahead and bought a new Aston Martin because you told me I can write it off thanks Craig

[@FlyingWheels]

😅🤣

[@MarshallLoveday]

Craig - I'm curious to know how close you were to considering a BRAND-NEW truck, which would give you a HUGE deduction, plus giving you the advantage of a full warranty?

[@FlyingWheels]

It's still your money. And I didn't want to suffer that much depreciation on a new vehicle.

[@taokichavez9319]

hey Greg, really great content thanks for sharing! :D I have a (probably stupid) question but: do You need a tow truck license to transport cars with your truck from the auction to your business?

[@Evangelistaadventures]

Thank you for those gold nuggets

[@IvansBikesBmws]

Spectacular advise. Thanks

[@gord2358]

I've always leased a vehicle for business. Then, in a way the company is buying the vehicle for me. At the end of the lease I usually buy out the lease, getting the vehicle for the previously agreed upon buy-out figure.

[@getupandgotransport6344]

Bought 2 cars thru my company,thanks Uncle Sam.

[@joshuathompson7845]

Great video. Thanks

[@ricciodrake]

Very informative video, I appreciate the content

[@bebin73]

If you buy new you can write off a huge amount ($60,000 I believe) on anything with over a 6,000 pound gvwr. Heavy duty truck, Escalade, Range Rover, G-wagon etc. makes sense to purchase new if you can.

[@montylabana8367]

Great video!

[@ninjakawasaki1972]

Appreciate it bossman 👍🏽

[@nickkinne]

Very simple terms and explanations on it

[@GreenLeavesGrower]

Where did you get the blue jacket ?! That is so sick ! Nice video as always

[@swibble02]

To maximize your fundability you need to make sure your business credit profile is solid. So many new businesses have no idea how to build up their credit profile. Even more scary they ONLY use their personal credit to buy everything. There is a science to it and it’ll make life so easy once you are setup.

[@eamonnmckeown6770]

Excellent info.

[@clivefutube]

Could you tell us how car insurance works for you a car dealership, business, personal, test drives, road testing other people’s cars? Thanks

[@jbeav3902]

The best advice I can give Craig is to sell everything in new hampshire and move to Florida. It's 82 were I am and my electric bill is quite cheap and no state income tax.

[@ct181]

Have you ever considered katskin seat covers. I know a lot of aftermarket companies use them instead of getting the vehicle with leather seats. You get a little more freedom of style and if damaged can be replaced and they look great

[@fraidykat]

And they're tax deductible... :P

[@livelife6214]

This was helpful

[@franciscocv1995]

That's my goal to start a few businesses and to get a truck or 3 in the LLC and hire family so they can drive those.

[@digitalmaniak3k]

Great explanation. Do you mind if I reference this video (link only, won't use footage) in an upcoming video I'm producing on why I turn down side-work?

[@FlyingWheels]

Sure

[@dennisreynolds6915]

I use my car for business to meet with clients so it's not 100% business expense for me. My accountant writes off 50% to 75% of my vehicle since indo use it for personal as well but still helps!

[@wow35master]

does really the IRS check and go through the expenses one by one? is so fascinating hearing about US taxes and so on . Tbh theres a lot of similarities here to Europe but you are more free when it comes down to your expenses and some times also the government or the EU parliament cover some expenses if you try to go green and so on ! Business owner here .Selling metal and heavy construction equipment!

[@FlyingWheels]

When you get audited they do

[@wow35master]

@@FlyingWheels that's very new to me ! have to be hard to operate like that

[@marte1a256]

You are just awesome craig

[@Fazepagehonda]

This guy talks so much but he does say stuff that helps us

[@Bignash83]

You are educating me

[@thebeardedcpa9234]

I appreciate your explanations on business vs. personal expense and some of the wisdom you have about purchasing for the business. However, the Corvette example is flawed. Just putting your name on the car and driving it around isn’t enough for the car to count as an expense (even for a KZbinr). Because it’s a car, the miles have to be tracked and split between personal and business use. If the miles count as business, then it doesn’t matter if your logo is on it or not. If it’s personal mileage, then your logo doesn’t make it business mileage. That said, your explanation about your wife driving a van that's on your lot was a great point. It's not a business expense even though you might say that she's testing it out so you can fix it, or understand how to sell it, etc. Overall, pretty good video for a non-accountant!

[@FlyingWheels]

Thanks for adding to this!

[@elijahmoody3214]

craig nice subaru wagon behind you

[@deanmiller294]

Do you have to claim the money the credit card company pays you at the end of the year?

[@charliesantiago4262]

Marvelous videos

[@MyDyerMaker]

Did it cost $85k to not pay $20k in taxes? I'm no accountant, but the rule I used was that I'd buy something for the business if it paid for itself in revenue or savings over 3 to 5 years. Maybe that truck did, but after 2 years you've lost $48k in value as well as the interest or earnings from $65k over 2 years in order to save $20k in taxes.

[@dj1698]

What about those 3 jeeps you bought & rehabbed & swapped grills etc? Did you sell they too?

[@randalambrose3448]

Great information

[@mannymejia88]

I’m 2nd. I’m from Los Ángeles , California 😎

[@DPoner]

Oralé!

[@jaybenjamin2739]

Awesome

[@lop8828]

East side !

[@mrjon75]

Great video.

[@calvindavis7481]

As a 16 year old that was very helpful!

[@marklittler784]

Lol

[@marklittler784]

Yeah making it is one thing keeping it away from the tax man is another they don't teach you.

[@lieberfreialsgleich]

You Never know too much about taxes. Learn it early.

[@marklittler784]

@@lieberfreialsgleich Yeah no point earning it then giving it away.

[@fretworkband3204]

Everything in life is a business: your work, your marriage, your mortgage, etc. Always look for ways to maximize those “businesses”.

[@majdyammari1884]

Craig, thanks for your informative tubes but I have a question regarding SALES TAX. Are they applicable on auction cars or when you sell them to the public? do you need to forward sales tax to the IRS? best regards, cheers.

[@FlyingWheels]

Dealers will collect the sales tax from the purchaser at the point of sale. Then, typically monthly, that sales tax is forwarded Local state government

[@majdyammari1884]

@@FlyingWheels Thanks Craig, much appreciate it.

[@Ultrageizt]

Support your local Tow Companies! Thank You for the knowledge, Cheers!

[@Ultrageizt]

Nice choice on the GMC btw, looks great!

[@FCT8306onTwoWheels]

Good stuff

[@7limey]

that new camera crazy

[@yakchimaev9972]

As far as credit cards goes. Utilization makes up 30% of your credit score so if you are trying to get a good score maxing out your cards every month even tho you are paying them off will drop your credit score. just something to think about

[@jacobrutledge7187]

What do you want for the f150 with the plow.

[@Jsienicki1]

What credit card you like to use? Do you run it through the same bank as your business account or go with a 3rd party vendor.

[@FlyingWheels]

Research best business credit cards

[@randyheath8566]

I even turned on the "BELL"

[@FlyingWheels]

Thx!

[@markworthington5423]

I'm impressed. Always straight forward & honest. You ever think about branding your name & expanding? AZ laws are much more lenient.

[@marklittler784]

Like the credit/debit card "opinion "

[@bonecc4061]

So if I buy a $100,000 truck. Would I have to buy the truck after starting the business or before. If I use the truck 100% for the business does that mean that after I pay the payments then at the end of the year I’ll get like reimbursed?

[@fritglassware9165]

My accountant had the same advise. I was gonna spend 30-40k on a van but to save on taxes I ended up buying a much nicer van for 85k and got to keep way more of my money. In the end Id rather my money go towards depreciation and dissappear rather then give it to the gov't to buy 40 thousand dollar staplers lol

[@codemanblue]

This is some pretty dumb advice. You would rather pay GM an extra 40k than p aszy the gov an addition 6k in taxes? Not wise

[@omarsola205]

What kind of accounted do I need, I have my own business in construction. I am 21 years old and last year was my first year and actually kept me and some of my friends busy.

[@fraidykat]

Track Every Single Little Expense with the reciepts, spend at least 8 hours a month on your books putting those receipts in an organized manner for storage and the data into a digital spreadsheet for computations. Categorized all of your expenses particularly by the deduction categoies. If none of this makes sense, hire an accountant.

[@dj1698]

What ever happened to that boat? Did you get the engine replaced? Did you run it through the auction?

[@marklittler784]

Tax adviser and accountant arn't exactly necessarily one and the same, you usually have to give your accountant a jab with a cattle prod to help turn them into a tax adviser.

[@fretworkband3204]

Very true plus big bucks if CPA.

[@jeffmac3071]

Craig you should have your CPA on like Ryan Pineda does

[@LostCauseRanch]

Is that Range Rover Classic in the back for sale?

[@JR-ft1tr]

Can you do that if the truck is used for your business but is registered on your name,not your business's

[@olivierauberger]

Àre you sure you want to tease the IRS?

[@FlyingWheels]

Very true

[@stangman70429]

As a NH resident you should be aware that the snow on that trailer violates "Jessicas Law" The NHSP is not messing around with that.

[@wbhandary14]

What kind of credit cards do you use?

[@chefgromano5025]

If the govt wanted you to succeed they would leave you alone to use the money you earn the way you want to.

[@lieberfreialsgleich]

👍and what we see today is only a banking mafia & big 4 idea.

[@Ukrainianification]

You would have to be your own police, medical, fire and military which brings us right back to taxing people in your family to pay for those things.

[@chefgromano5025]

@@Ukrainianification I understand the basic functions of Govt are needed But the spending is out of control and I should not pay for people that want to sit on there ass and collect welfare. And I should not be told if I get a tax break only if I spend it a certain way. In 2013 I was forced to buy a truck or spend it on taxes. I didn’t need the damn truck and I still have it.

[@Ukrainianification]

That can only be changed by voting in every single election from your local town to federal. Writing to you senator helps too.

[@chefgromano5025]

@@Ukrainianification America just got robbed in this election. Voter fraud through the roof!

[@lieberfreialsgleich]

If you pay transportation, you pay someone to work for you. The trailer is just a smaller part of what you pay.

[@AlexanderWojciech.]

Hello, I'm Alex and I'm 14 and from London. My neighbour has a 2004 BMW 3-Series 3.0 330d sport 4-dr and she recently stopped driving it, and its been sitting on her driveway for the past 4 months, untouched. She even put a Tarp on it, and i dont think she has any interest in driving it anytime soon. I'm quite good under the bonnet, and I have done multiple repairs for my dad and his Mercedes. Recently, I found out that she is willing to sell it for £1500. Its not in the best of shape, and it definitely needs some paint touch up here and there, but I think I could have a money-maker. She also mentions that the AC isn't working, but I'm not too worried about it as my dad has had BMW's in the past and normally the AC is a really cheap fix. The car runs fine, sounds okay and the interior is okay. I'm thinking if I make her a offer on it, make a budget of about £500 to get it back into good shape, then I could ask my parents to put it as THEIR car, I would fix it up as a fun project, then I would sell it back onto someone else. Will I have to pay any sort of tax or VAT for selling/buying a car?

[@WoWo37]

call a local lawyer. The law varies from place to place.

[@MarcosSilva-kd3kz]

Craig, what if you bought 200 cars Throughout the year and you only sold 180 cars by December 31st. What happens with the 20 cars leftover investment you made for that year? Since you made an investment but you didn’t have any profit coming from those 20 cars? So my question to you is, how does that work with the IRS?

[@twmcmahan]

The amount paid for the car is considered an asset that is taxable until the time of sale. It becomes an expense when the vehicle is sold.

[@MarcosSilva-kd3kz]

@@twmcmahan Thank you!

[@FlyingWheels]

@@twmcmahan perfectly explained

[@brunotartari675]

Dodging taxes within the boundaries of the law is a must for every entrepreneur.

[@brunotartari675]

And of course, I say within the boundaries of the law because of the risks, not because of a moral issue, since taxation is theft and, therefore, evasion is acting in self defense. But things can go very bad for people caught trying to keep they're money for themselves.

[@920gamez]

What ever happen to the boat you got from Florida I think?

[@marklittler784]

Next week how to emigrate to Dubai.

[@jeremyjacobi2381]

This is why I'm going to form an LLC for my Lyft and delivery driving.

[@marklittler784]

Registered as a mailbox company in Amsterdam.

[@spencerdonald6102]

4th bc Canada. My igloo is cold

[@cartermaclellan6129]

Mine to - Ottawa Canada

[@MrSmg103]

Hello from boston

[@DPoner]

I see flying wheels I hit upthumb. Simple as.

[@bearbonesphones4686]

You got a Denali for a work plow truck omg 😭😂😅🥲 so over kill lol 👍

[@dealerauctionnightmare4689]

What is the Auto Experts sign for?

[@FlyingWheels]

Service. Haven't taken it down yet