#writeoffs #taxes #deductions
In this video I’m going to explain some truths about tax “write offs”.
Is it bad advice? Does it do me any good? Taxes are the single largest expense in many peoples lives, more knowledge can really save you money….(read more)
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Tax season is here and everyone is looking for ways to save money on their taxes. One of the most commonly used methods is by claiming tax deductions. However, there are many myths and misconceptions about tax deductions that can lead to misunderstandings and even penalties. In this article, we will provide you with the truth about tax deductions and how to maximize your savings while remaining within the law.
What are tax deductions?
Before we dive in, let’s start with what are tax deductions. Tax deductions are expenses that can be subtracted from your taxable income, which reduces the amount of tax you owe to the government. Essentially, they allow you to keep money that you would have otherwise had to pay in taxes. Some common tax deductions include charitable donations, mortgage interest, state and local taxes, and medical expenses.
Truth #1: Not all expenses are deductible
One of the biggest misconceptions about tax deductions is that all expenses can be deducted. Unfortunately, this is not true. Only certain expenses that meet specific requirements can be claimed as tax deductions. For example, expenses that are necessary for your work or business may be deductible, but expenses that are purely personal, like cosmetic surgery, cannot be claimed.
Truth #2: You need to itemize your deductions to claim them
To claim tax deductions, you need to itemize them on your tax return. This means that you need to list out all of your deductible expenses, rather than taking the standard deduction. The standard deduction is a default amount that you can take off your taxable income without having to itemize your deductions. However, if your itemized deductions exceed the standard deduction amount, you’ll save more money by itemizing.
Truth #3: Tax deductions are not the same as tax credits
Another common misconception is that tax deductions are the same as tax credits. However, they are actually different. Tax deductions reduce your taxable income, whereas tax credits directly reduce the amount of tax you owe. For example, if you have a $300 tax deduction, and you’re in the 22% tax bracket, you’ll save $66 on your taxes. However, if you have a $300 tax credit, you’ll save $300 on your taxes.
Truth #4: Some tax deductions are limited
Certain tax deductions are subject to limitations. For example, medical expenses are deductible, but only if they exceed a certain percentage of your adjusted gross income (AGI). The percentage changes from year to year, but for the 2020 tax year, you can only deduct medical expenses that exceed 7.5% of your AGI. Additionally, some deductions have a cap on the amount that can be claimed. For example, you can only claim up to $10,000 in state and local tax deductions.
Conclusion
In conclusion, tax deductions can be a great way to save money on your taxes if you understand the rules and limitations. Remember that not all expenses are deductible, you need to itemize your deductions to claim them, they are not the same as tax credits, and some tax deductions are limited. If you’re not sure whether an expense is deductible or how to maximize your tax savings, it’s always best to consult with a tax professional.
DIY SEMI, TRUCKING AND MORE
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Come check ✔️ out our trucking meat and eggs and fruit unlimited amount of any meat products, we got off all meds no more joint pain thanks for your help lvciddd
What if you invest in the stock market but lost money? Do that count?
A question can I buy a suv 6000 pound and deduct that?
Business retirement account 25k hide
So I have a question if I’m a Owner operator and I’m driving 500 miles /10mpg loaded fuel would cost $250 and we get .50 per mile back so we actually get $250 back when we file taxes? Or how does that work?
Always watch your videos really helpful, thank you Sir!
You are kind to provide the information in your videos. I , like many, really do appreciate your time and effort.
You are awesome!
Cool beans
I love the way you think, always informative.
Do you recommend a good CPA that has experience with truckers?
can we use it in a llc the 401 k
Hey there I just created my llc and about to pay truck cash ,but I don't know if I put the title and bill of sale in my name,and I would be able to have it tax deductible or in LLC name ? I which to put it on my name because most of the purchase I will come from my personal saving. Any answers would be great ,thanks
Just getting started as an owner operator. Been doing a lot of research and this has been the most informative video I’ve seen. Thank you so much
Is there any tax deductions for company drivers (regional)?
It is true that you can deduction 40% of your grows income as a fuel deduction since fuel cost $4.60 per gallon?
Anytime I try and tell people the exact same things you were saying in this video I get shouted down or voted down.
But I'm the one saving all the money
DIY you’re awesome man I just found you and I fell in love with your Chanel.. the way you explain things are amazing thank you brother pleasure keep making them videos once again I appreciate you..
The thing is you can net zero your income by buying a semi truck at the end of the year and leasing it off to landstar with a driver. Make 100% ROI on your money at the end of the next year as well. Pretty cool.
Can I write off truck repairs even if (I am getting truck load ready for a year, never made a dollar in trucking this year) I have a ein and llc but never moved the truck ONLY REPAIRS LOAD READY
Awesome info thank u!
To summarize: A paint job, spikey wheels, and cool lights = really stupid tax "write-off", a business uses investments in the business, and themselves, as a "deduction". Nice work.
Tax deduction when you spend 10k to save 2.5k in taxes! Numbers off concept works
Is commercial insurance tax deductible?
If I already have HSA, do I also need FSA?
Thank you. Am trying to learn as much as possible to help my husband run his new trucking business
Thank you Brother, nuff Respect
Hi, great info. Can you share where exactly you obtained this info? I am reading alot of tax publications but none are truck business specifically. Thank you in advance
Subscribed for "flippant and dismissive"
Loud and clear! Thank you so much
What happens after the 3 year depreciation ?
Thanks for the helpful video. Please, please, please dumb the intro music. It is horrible. Thank you
Your brain and channel is like free money your a wealth of knowledge!