Auto Deduction Strategies | Mark J Kohler | Tax & Legal Tip | 2019 Update!!

Auto Deduction Strategies | Mark J Kohler | Tax & Legal Tip | 2019 Update!!


If you’re a small business owner, you’ve got to be aware of the auto deduction strategy It is amazing and it works in every small business at some point You’re going to get in your car and drive to pick up supplies or meet a customer client go to a conference And so it’s gonna be on your tax return and whether you have a car an SUV a truck an electric vehicle The the write-off is amazing under the new tax law. So let’s break it down And I know you’re gonna find some hidden jewels right here Now you have two main options for your auto deduction And remember this is not travel travel is hotel airfare uber air B&B all that kind of stuff This is your car truck or SUV or RV? That’s what we’re talking about. Whether you’re leasing or buying or paid cash This is the auto deduction and you have two main options. You can do mileage or Actual now, I’m just hitting out highlights here – I’ve got articles on this and more in-depth videos and my tax on legal library But let’s just get it out there and see if you can start to figure out which option works best for you in fact I have a recent blog article with seven different rules or standards to help you choose the right method now mileage is in 2018 gonna change in 2019 it’s different and it always is updated Some of you may be still preparing your 2018 tax return and this video is gonna help you a ton for 2019 That’s let’s hit both of this for business miles in 2018 is 24 and a half cent Sorry fifty four and a half cents and then for medical and moving it was eighteen cents and then for charitable it was fourteen cents Now you’re gonna track your mileage on each vehicle you use and if it’s personal and commuting no write-off for Going to the grocery store out to movies at night or driving to your day job but these mileages you’re gonna want to track and do your best to Estimate them the IRS would love an actual written log or a GPS type app and I’ve got those in different articles of mine to help you find that maybe the best app to use but do your best and If you have to just estimate your miles and be able to produce a written record if needs be now in 2019 It’s 58 cents a mile. This is the best it’s ever been and it’s up to 20 cents for medical and Moving and then it’s still 14 percents for charitable so these are still really really powerful and if you’re in a Situation where you’re putting a lot of miles on and you bought a used car in the 20 to 30, maybe even $40,000 range Over time in two to three years You’re gonna get a lot more going with mileage for some of you that don’t put on as many miles We’re gonna want to think about actual okay Now when we go to actual we have to think about the type of vehicle or the scenario you’re dealing with Now whether you buy with cash or put a dollar down and get the whole thing borrowed on credit, it’s okay It’s the same method you’re just maybe writing off some auto interest on the loan, but you’re gonna deal with car truck SUV which is a lower less than six foot bed a big truck and we could even put the RV in this mix and Then we’re gonna deal with leasing So these are the four options that we deal with when we get to actual now to blow this up Let’s go to a new sheet of paper. All right now again, I’m just gonna hit the highlights here So this videos not an hour long so you can get a bowl of popcorn and Diet Coke and get over my tax and legal Library where I’ve got 60 plus videos on auto paying your kids IRA is 401 k’s writing down dining expenses amazing Okay But i’m just gonna hit highlights here and I think you’re gonna love this now the car in the good old days back in the 70s the IRS and the government said a car that was More than fifteen thousand dollars was a luxury vehicle. I know crazy That’s what the old rule was. Now under the tax cuts and Jobs Act a luxury vehicle is anything over 50 grand? So that’s a big deal because we can get bonus depreciation and bigger Depreciation on the first two to three years where we couldn’t do that before now what it is is under this bonus Appreciate you you can get up to eight thousand plus another ten and then it gets to 16 in the second year in depth and I will get into all the detail but Essentially you can write off almost 75% of this vehicle if it’s under 50 grand in the first three years So then you’re still writing off your auto or fuel repairs maintenance and so if you buy a car in that thirty to fifty thousand dollar range and you’re not Put a lot of miles on you want to go actual cuz the write-offs are amazing but again, if you’re gonna put on a ton of miles You’re gonna maybe stay away from the actual but this is where the car has gotten so much better, but it even gets better before the SUV in truck Remember the old rule if you bought an SUV or you had a truck with it’s less than six foot bed kind of a glorified SUV with the truck bed you had to Use the 179 deduction and you could only write off 25 grand and then you had to depreciate it It was still pretty good and I had a lot of clients to go that route because of the lower fuel economy It was it was just a great thing to write off all that gas, but it got better I’m gonna throw in some ShamWow or get in towels or some Ginsu knives here This hundred percent bonus is available to any vehicle that weighs over six thousand pounds So if it weighs more than six thousand pounds this and it’s a truck that has less than a six foot bed It doesn’t matter anymore this kind of SUV criteria You’re able to ride off a hundred percent of this vehicle the day you buy it even on credit Assuming it’s a hundred percent business use so you could find some percentage of this and still make it work This is amazing now They bigger trucks that still wait more than six thousand pounds and have greater than a six foot bed. Maybe a delivery van hundred percent bonus depreciation you come right off the whole vehicle again in the first year or depreciate it over time and you can’t Drive yourself into a loss if you don’t have enough income in your business You don’t want to chase this rabbit down the hole. So be careful in fact, I’m gonna do aggress there and save this to I have a lot of clients like mark I need a write-off and they can want to go out and buy this expensive car expensive truck just for the write-off sake guys, make good economic decisions good economical wisdom really plays into this because you don’t want to Pay for a vehicle that may be sexy in your dream car until your business can handle it So I want to see enough profit to Take this as a write-off, too Or else you’re not getting a write-off that is really going to benefit you on your tax return Now the RV big one I’ve got other videos out there on RV owners those that are full time RV or lifestyle or those that have an RV that they drive to work saw it works the sites or conferences or to trade shows or to haul supplies around and and maybe even use their RV at a rental property where you’re fixing things up The RV can be an amazing write-off and still with a hundred percent bonus depreciation I even have people that are buying RVs and renting them like an air B&B VRBO strategy and you could depreciate the whole freaking RV and use it once in a while. There’s some rules there. It’s pretty exciting Finally leasing is a tricky one. You can actually with leasing go actual or mileage I have some clients that will go with the mileage deduction versus the actual and it depends on really your business Use the cost of the lease How long you plan on using it how many miles you’re gonna put on it, but you want to be careful with leasing? I actually have a podcast if you go to my podcast refresh your wealth on iTunes or stitcher We had a just this last couple months ago her here in early 2019 We did a whole show with the leasing purchase expert on which one works best gets refresh your wealth and check that out But here’s my point Leasing has a drawback. If you put on too many miles, you have to pay for those miles to give the car back And so you want to be really careful there it works great for actual because you get this bumper-to-bumper benefit and you can usually get a nicer car if you want that BMW or Mercedes or Audi in its more than 50,000 I’d recommend from an economic standpoint. Maybe you lease it. You get a lower payment per month keep your miles and check and you can write off maybe all the lease payment plus fuel and You better not have repairs and maintenance on the lease. So rate leasing is another Wild card it just depends on your situation in summary the auto deduction matters It is a big deal. And if your accountant isn’t really trying to maximize this write-off you got the wrong accountant Remember, you’re the captain of your own ship and knowing these basic rules can help you make some good decisions When you’re out shopping for a new car or used that’s the beauty of this new depreciation scheme I actually think it’s a loophole in the new tax custom Jobs Act that Congress and the IRA stand Didn’t expect and we want to we want to take advantage of that as business owners So be thinking about this be in charge of your tax return and down below in the in the information below I have to my article where you can read more on this with seven different criteria that might help you make a decision I also get over to my refresh your wealth podcast It’s down below and the tax and legal library with 60 different videos that links down there below you’d love it And it’s a great investment Lifetime membership. It’s just a few hundred bucks Anyway, thanks for watching and make sure you’re using that OTO in your business wisely and make good economic decisions Thanks so much for watching that video and I want to be your source for tax and legal strategies It’s hard enough to live the American Dream without being out on the web on Google trying to find answers to complex Questions and just click in a mouse hoping you got it, right My team and I want to be a huge resource treatment the law firm accounting firm by Education resources on my site. Please continue to follow these strategies I know the safety thousands now click here if you want to be a part of my newsletter It’s awesome weekly updates and deadlines and strategies and tips also subscribe to my youtube channel You’ll love it and make sure to click the bell icon so you get a little ping whenever there’s a new video and Finally check out my site Marjory Kohler comm with all sorts of videos. Probably seventy plus videos 30 plus hours of content That’ll save you thousands

19 thoughts on “Auto Deduction Strategies | Mark J Kohler | Tax & Legal Tip | 2019 Update!!

  1. Love the Content Mark! Look forward to using this in the future!

  2. Have you done a video on ride-sharing and filing taxes?

  3. Do you have to buy it in your LLC?

  4. 1st off… Looking good Mark! Been a while since watching your videos, noticed the workout/diet, Awesome!

    We've signed up with KKOS again, many thanks for all ya'll do! 2nd year working with them and looking forward to it! Many Thanks, Cheers

  5. wait 6000# & truck. No that is not right is it. Are SUV's OUT?!

  6. also you can't carry forward the loss on this right?

  7. If you do mileage, can you still expense the gas through your company?

  8. Please, put the links to tour podcast and the article you mentioned to buy or lease a car

  9. Great content and very easy to understand. I leased my vehicle and plan on writing it off. However, I also take uber to some of my clients. How much can I write off in uber and/or additional transportation expenses?

  10. Hello, I am an online independent contractor teacher. I use my vehicle to buy various things to use for my online job. I went to H&R Block and they wouldn't deduct mileage for that. Was that right? She didn't seem too sure about herself. Thanks. Do you recommend me, taking the taxes to someone else.

  11. Hi Mark, does the vehicle have to be purchased or leased by the business if I have an LLC? Or can I personally buy/lease it since an LLC is pass through?

  12. Sir I have a question if I File a actual for auto Am I allowed to write my gas off ? Thank you so much and have a bless night

  13. Hey had a quick question I was hoping you can answer it. Could I write off a used car with a hundred thousand miles if I'm using it for business purposes in my sole proprietorship? I had a junker parked in my garage for a couple months. Figured I would rebuild it and put it to good use in my business.

  14. Hey Mark, do you have any suggestions for vehicles valued over $50k? ie: $80k?

  15. Last year I took a full deduction on a Toyota Tundra. About $46k . November will be two years of ownership. If I sell this vehicle and bought a different truck over 6,000 again . Can I take the deduction with bonus again? What happens then when I took the full deduction already ?

  16. Hi Mark, in your video you mention buying used. Can I still write off the actual expense of a vehicle over 6000 lbs if it is used. We’re looking to buy a certified 2018 vehicle and have read conflicting reports. Thank you

  17. Hi there Mark! Truly enjoy the valuable content that you continue to put out.

    How can this auto deduction be utilized if a spouse is a high-income W2 earner and the other is a low income earner 1099? Would the 1099 spouse be able to purchase a vehicle using the W2 spouse's earnings until the business is more profitable?

  18. Hey Mark – great information, but please also include the fact that a vehicle must be used more than 50% for business purposes in order to take a depreciation deduction. I’ve had so many clients that want to write off 100% of their 6,000+ SUV because the guy at the dealership told them they could do it or they watched a video on YouTube and yes they drive back and forth from their office, but that is considered commuting not business use. I end up being the bad guy, because I can’t put a $60,000 – $100,000 deduction on the tax return that I sign as the preparer.

  19. Does the car needs to be under the biz name?

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