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Master Electrician Teaches Son about Taxes and Write-Offs, when becoming a Contractor🛠️ Thoughts?

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Hendy The Sparky

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This video features a conversation between an electrician son and his father, where the son seeks advice on filing taxes and understanding write-offs for his first year in business. The father provides general guidance on common business expenses that can be written off, such as tools and vehicles, and warns about the likelihood of an IRS audit when transitioning from W-2 employment to self-employment. He stresses the importance of an accurate first-year tax return without exaggerating deductions, as legitimate write-offs will already be substantial.

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Dad, I'm going to branch away and do my own electrical business. What's some advice for some firstear taxes and write offs? >> Good luck. Uh, okay. One of the challenges you're going to have whenever you want to start your own business, the amount of expense it takes between tools and vehicles and just setting yourself up for business is all a write off. >> All of it is a write off. >> Oh, I see. Work vans. >> Look, I'm not the accountant. I'm just giving you what my knowledge that I know. You want to be careful because you're most likely probable you're going to get audited. >> Okay. From the IRS. >> Yes. >> Okay. >> Because you went from all these years as an earner, a W2 earner. Yeah. >> Where your income was clearly defined by your employer who sent you a W2. Now all of a sudden your income's going to go zero. Your income's going to go way down and all the withholding is going to be high. So it's just going to set off a flag. So that first year tax return really has to be on the money. And you don't have to fudge it because you're going to make so many write offs anyway. There's no reason to exaggerate any type of work shirt, work tools. These are all tools that you need for business and you can write off. >> Okay. So, Dad, I can write off my new job site Milwaukee speaker. >> Yeah. Yeah, you can. >> Yeah. I mean, I use this on the job. Well, >> it's a tool. Yeah. >> And it's a battery charger. >> I really appreciate the advice, Dad. >> Yeah, man. Becks.

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