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10 Self Employment Tax Write-offs to Make You Rich

how's it going to everybody this is beat

the bush today I'm gonna talk about ten

self-employment tax write-off that can

make you rich Albert Einstein once said

the hardest thing to understand in the

world is income tax now why is it so

difficult because usually when they make

it very simple people always try to find

ways to get around in and they make new

rules and then people get around those

and then they make new rules so then it

just keeps on getting bigger in terms of

the tax laws now here's a disclaimer I

am NOT a tax advisor I cannot advise you

on what to do with your taxes my hope

with this video is to point you in the

right way that there are such things

that exists out there you may not

qualify for them but you would know

about the topic and then you can go

research that yourself some more maybe

talk to your financial tax advisor and

then get things cleared out to see if

you actually qualify for it everybody's

individual situation is gonna be

different so all these things I list may

not actually apply to you you might not

be a self-employed person but I think

that even if you're not self-employed

you should really watch this video

because then you would get an idea of

how much benefits that you would get if

you try to earn money outside of your

regular job there are so many things

that you can write off this translates

to all that money that comes in you are

not paying taxes on it because you're

just expensing them as part of your

business now let me begin to my surprise

that this year is my full year of being

self-employed and to my surprise that

you can actually write off self-employed

health care insurance because I am

self-employed I have to pay for this out

of my pocket then this is actually a

good thing because it kind of subtracts

off of the revenue that I have the

profits I have on running this YouTube

channel and it becomes so that I do not

get taxed on it realize that when you

are self-employed you're essentially

paying about 14 to 15 percent Social

Security taxes when you're working for a

company you still pay about 7 percent

Social Security taxes and you pay this

up to an income of a hundred eighteen

thousand dollars now where does the

seven other percent comes from your

employer pay

this for you and you do not even see

this in your salary when you go the

self-employment route it means you have

to pay for both sides you have to pay

for your own 7% and you also have to

play the employer 7% so it becomes more

and more expensive to become

self-employed but the redeeming quality

here is that yeah you can if you're good

about this and if you're savvy about it

you can write off a lot of your profits

so that it does not appear as a profit

so that you don't get taxed on it the

second thing that you can write off that

would massively dent your profits you

know you take it off so that you don't

get taxed on it is retirement accounts

that you can use as a self-employment

person depending on your income you may

be able to write off something pretty

significant tens of thousands of dollars

from your profits

the third write-off that you might not

realize is vehicle expenses in 2018

every single mile that you drive as a

business expense would deduct you fifty

four point five cents off the fourth

thing that you can write-off is business

travel expenses if you're going

somewhere on business you need to I

don't know go to a trade show relating

to your job then you can write off these

air fares the hotel bus tickets train

tickets all those travel expenses things

that you can just actually put in and it

would come off of the top of your

profits you can write off business

cellphones and also communication fees

now for me I don't have any so I do not

really need to write off that which is a

pretty good position you can also write

off business meals but this gets a

little bit complicated because you can

either write off 0% 50% or 100%

generally speaking you can still write

off 50% of your meals when you are

having it with a customer or a client

100% write off is a little bit different

and they have all these different rules

regarding how it's actually used for

example if you're selling some seminar

okay and you actually have to pay for a

banquet or something you know you have

to pay for the food for everybody then

you can actually write off that 100% so

this is kind of rare for most people so

you really have to look at how you

actually spent that business meal in

order to categorize it correctly for

this channel I do rent up heel box where

I

packages relating to business only I do

not get anything else this is for the

sole purpose of this channel so the cost

for that rental for that peal box I can

actually write off it's about two

hundred dollars or so so if I earn two

hundred dollars on YouTube well it would

seem like I did not earn that money at

all because it just comes in and it goes

out the door because it's part of a

business expense it's the money that's

required for me to run this operation

the a thing is a little bit more

difficult which is a home office expense

now generally they'd like you to have a

dedicated spot like let's say you have

some room somewhere that is a dedicated

home office type of thing they want you

to track how many square footage it is

compared to the whole property and then

also how many percent of the time use

that area for business only purposes so

they kind of want to figure out okay if

you only use a certain portion of your

home and you only use a certain amount

of time then you really have to figure

all this out to see how much deduction

that you can actually get if you're

actually renting a whole place you know

off site then that's a lot easier

because you know the whole place is

actually a home office compared to for

me where this is a home mostly every

single video that you see me do is in

this living room now I want to say if

you go to self-employment route and you

start having expenses it's very very

important that once you start doing this

you need to track your expenses every

single day now this includes every

single mile that you drive if you take

public transportation to conduct your

business and it's on some value card or

something you still need to track where

you went and how much the fares cost in

order to deduct all this my experience

with this is if you do not track it

every single day you're likely not going

to remember especially with how much you

spent on public transportation given

that it's the same day you it's still

fresh in your memory so you can write it

all down so I highly recommend that you

go and log down your miles I have a

little notebook inside my car that

whenever I drive somewhere I actually

write the date I write the start miles

to end miles and then I track every

single trip and the business reason for

each one of those so you can do that the

same thing for

with transportation same thing goes with

the business meals everything that's

business-related write it all down no

matter how insignificant if even if it's

a dollar if you keep on doing that every

single day it's gonna add up by a lot

there's other things that you can write

off in terms of a business expense

especially equipment that you use solely

for your business it might be

interesting to talk about this honey

badger here because this certainly is

not for me to play around with this is

kind of like my channel icon it's on my

t-shirt and stuff so I put it here for

my video so this was interestingly

expense as part of my business expenses

you have to be very careful if you are

buying certain item and you also use it

for personal use you have to keep track

of how much do you use it for personal

use or is your business you know

something completely unrelated and then

you decide to buy a camera because you

really enjoy photography or something

and then use it you know just once or

twice for your business and then you go

yeah you know it's all business so when

you write off business expenses it's a

lot easier when you know that that item

is only used for business you're never

going to use it for you know personal

reasons not also if let's say sometime

later you devalue this item you no

longer use it or something you need to

undo it in your taxes so if you feel

like sometime in the future you're not

gonna use that item and then you're

gonna sell it off somewhere then there's

complications with that because you

already took the deduction then when you

sell it it's kind of unfair right in the

perspective of the government because

you already took the taxes out then that

means when you sell it you need to kind

of reverse this anyway I just want to

mention this just so that you know where

to look in the future if you have

certain costs related to self-employment

now as a general arching theme over here

I've heard it before I did the

self-employment route that wow you know

a lot of rich people they always have

their own businesses now you see why

maybe you still see why because all

these expenses if you try to integrate

all of this into your daily life it

means that a lot of the things that you

use even though it's considered business

expense

it might get integrated into your life

so that essentially the way that you

live your life is one whole giant

deduction so my theory and probably with

entrepreneurs and people that are trying

to increase their welfare their own good

is that you should try to maximize your

tax write-off within the confines of the

law I'm completely not saying that you

should you know try to cheat the system

you go by the books study the write-offs

that are possible and follow the rules

in order to get those write-offs just

like this video you watching this video

it's kind of like learning about brand

new write-offs which you can apply to

your own taxes thanks for watching this

video if you're interested in supporting

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