Disadvantages of Writing Off Your Car in 2024 - Section 179

the best explanation i ever seen, thank you

Wonderful educational video. I am considering purchasing a vehicle using my business.

Axed ffs turn it off immediately

Dude, you're awesome. Thank you for sharing these insights.

Section 179 covers curb weight or gross vehicle weight?

Tbh I’ve just learned the IRS will get their money some how, some way

Thank you this is so great, just have a question if you use section 179 and deduct the hall price of the car and after 5 years you decide to sell, should you pay back the recapture income tax? thanks

does depreciation capture also accrue after the 5 year depreciation ? and if yes what to do with the car not to have that expense

Biggest lesson people… pay for a damn tax accountant. Stop trying to “play the game” by yourself. Find a good CPA, tax attorney, and as always… be a profitable business. Life gets GOOD when you have these 3 things.

So if you have a job making 200k a year and a tax obligation of 40k a year it would make sense to use 179 to start a transportation business

Great job with the information. I really appreciate you presenting the cons. Many people see this as an easy deduction, but they don't realize the corner they paint themselves into.

Good video/ thanks for the advice

what if you use your vehicle for personal use but it has company info on the vehicle as advertising? does that mean driving anywhere is now company business if advertising for your business is necessary?

thank you!

Let’s say I own a LLC as a disregarded tax entity, but I also get a standard salary from my primary job. If I have enough write offs to bring my LLC’s taxable income to below 0 will the excess write offs flow through to reduce the taxable income from my job?

When I read section 179. I was wondering how the heck and why are people doing this.

At the end of the day it’s still a deduction. You are still making payments on the car.

Your business would have to still make money in order to write that deduction off. Your video pretty much explains it.

The deduction only reduces your taxable income. Which you still have to make money on the business.

To reason #3 there is a different schedule or time period for recapture tax. I believe vehicles is a 5 year period so it isn't ideally a death sentence if you write it off 100% with bonus depreciation but keep it for 5 years.

Very well done video

How do they track if the vehicle is used 50% of the time or not? Based on owner's saying?

Should a Lyft driver write off a new car ?

I’d still write it off, because you can continue those losses over until they’re used in other years when you do make money.

What about netting your business loss with your other sources

Thanks

Can you apply Section 179 Expense against W2 Income? This is for a new business and filing joint.

Asked

Great video! This is valuable information that, as you said, others don’t bring out. The title is fair because is is a counterbalance to all the other videos that tell you how and why you should write it off. This highlights important reasons why it could be detrimental to your bottom line such as the danger of 179 deduction and selling the vehicle.

a-s-k... ask

How does the IRS determine that you are not using your car for business enough?

Don't losses carryover to personal taxes?

I bought a commercial vehicle last Oct. The business didn't make any money but had a ton of expenses. I plan on trading it in for pick up for business use. So basically I should not write it off?

Just keep the vehicle forever😂 don't sell it

Is there a source where I can start to learn the tax codes? I am new to this tax stuff because I would like to start a business but there is a lot of info out there and I need to know what is right and what is not.

Finally someone to share real world consequences for trying to live in a dream.

I've watched several videos on this and yours is easily the best one. You don't just regurgitate general info. Thank you sir!

I do like what you're saying although I just watched the other guy and girl from this channel talking about the exact opposite 🤔

Where are you located?

THE BEST Video EVER. Very True facts.
I tried to explain this to a nosy guy who got involved in my buddy's & my conversation. He thought if he sets up a LLC he can write off a car and get it for FREE (?????) without making any money (cause the internet strangers told him so). He got upset on me, when i told him, U HAVE to make enough money and the TAX value is the value of that car (and also it has to be used atleast 50-60+ % for the business).

Great video

LMFAOOO @ when he mentioned the yacht💀💀🤣🤣🤣

So basically my $26k pickup truck for my welding business is a necessary purchase obviously by both me and the irs, it won’t bring me into any super negative profits if I write the entire thing off so it’s worth it there, it’s obviously over 6k lbs, and it’s used for businesses purposes 90+% of the time. From what I gather from your video, Im in the perfect situation to write off the entire vehicle???

“As an accounting firm we get axe”

If you are an S-Corp doesn't the loss go to the owners personal tax return?

👍

Clickbait: should retitle to, WHEN to and WHEN not to Write off your vehicle…

Just in the first 3 minutes, I can say that the -$15000 net loss can be transferrd to your K1 and then personal to reduce your own taxes.

Where can I get that jacket?

I purchased a 6000lbs truck 3 months before I was fired from doordash, would I be able to get any kind of benefits from 179 tax break , the vehicle was used over 50% of the time

So in conclusion, don’t buy or lease a vehicle in your business name unless you’re ready to be subject to audit

Can I write off a vehicle that I'd purchase in my personal name since business is new and didn't have enough business credit or income at the time but solely use it for business?