# Lyft Express rental tax question



## WAHN (May 6, 2019)

I don't rent, but was discussing the rental program on FB.

As I understand it, you guys on these rental programs need to use the expense method instead of the standard mileage deduction.

With the predatory Express Drive program, Lyft pays $0.25/mile less in this market.

IMO, that should be considered part of the rental expense. Just curious if anyone has done that.


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## mbd (Aug 27, 2018)

WAHN said:


> I don't rent, but was discussing the rental program on FB.
> 
> As I understand it, you guys on these rental programs need to use the expense method instead of the standard mileage deduction.
> 
> ...


100% of the rental fee is not expensed out... 1/5 of the miles on the car is personal non Uber miles, but IRS will not check it&#128077; and same for your accountant


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## WAHN (May 6, 2019)

mbd said:


> 100% of the rental fee is not expensed out...


Meh, wasn't even thinking about the portion of the rental that was personal as far as expensing goes.



mbd said:


> 1/5 of the miles on the car is personal non Uber miles, but IRS will not check it


This is a question about the Lyft program and what people can do, if anything, regarding the per mile cut when renting.

If expensing that $0.25 is allowable, I would guess it would be only for paid miles.

For example, if I drove pax 1000 miles in my personal vehicle, I'd be paid $652.50 in mileage, but only $400 if I was driving express. There may be an additional 500 miles or whatever in dead miles, but since mileage can't be claimed, it's moot.

Just wondering if that $252.50 difference could be considered a part of the rental fee.


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## Diamondraider (Mar 13, 2017)

WAHN said:


> Meh, wasn't even thinking about the portion of the rental that was personal as far as expensing goes.
> 
> This is a question about the Lyft program and what people can do, if anything, regarding the per mile cut when renting.
> 
> ...


No



Diamondraider said:


> No


You don't magically get new tax breaks on money you never earned.

drivers that have a car and take the mileage deduction cannot also claim gas, oil, etc. Since Hertz does oil changes, can a non-renter start claiming oil changes AND mileage because you get it free? OF COURSE NOT!

You cannot cherry pick tax benefits. You must structure you business and then handle finances accordingly. The varying structures are the reason so many posters here have varying opinions. They are not all commenting from the same perspective (renters Versus owners, mileage versus expenses, standard deduction versus itemized,etc)


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## WAHN (May 6, 2019)

Diamondraider said:


> You don't magically get new tax breaks on money you never earned.


Just asking a question. Not looking for magic.


Diamondraider said:


> drivers that have a car and take the mileage deduction cannot also claim gas, oil, etc. Since Hertz does oil changes, can a non-renter start claiming oil changes AND mileage because you get it free? OF COURSE NOT!


Bad analogy and my question isn't even remotely similar.

They are paying you less money per mile when you rent. It's realistically no different than charging you for the mileage, IMO.

The technicalities of it may prevent drivers from writing it off, but that's why I'm looking for opinions Thanks for yours.


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## Diamondraider (Mar 13, 2017)

WAHN said:


> Just asking a question. Not looking for magic.
> 
> Bad analogy and my question isn't even remotely similar.
> 
> ...


A driver can claim mileage or expenses, but not both.

The mileage deduction is an estimate of your operating expenses that the government determines and it is used to offset expenses.
A lower rate of pay is not an expense.

The cost of the rental can be written off because that is an expense. As stated, if you write off expenses you cannot take a mileage deduction. A car owner must choose one or the other. A renter may not choose the mileage deduction because they are claiming the cost of the rental which includes other expenses like the oil change.

so now you can probably see that my example is exactly on point.
My intention was to answer your question and help you see the reason why you cannot deduct that money.
If I was trying to be adversarial or sarcastic I certainly would have chosen different words. Be well



WAHN said:


> Just asking a question. Not looking for magic.
> 
> Bad analogy and my question isn't even remotely similar.
> 
> ...


Magic = Thanking you see something that doesn't exist

But I give you an a for effort. Very creative


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## WAHN (May 6, 2019)

Diamondraider said:


> so now you can probably see that my example is exactly on point.


Nope. Because I'm not talking about "double dipping".


Diamondraider said:


> A lower rate of pay is not an expense.


This would fall under the technicalities preventing it.

I would love to see Lyft's explanation of why they take $0.25/mile from rental drivers.

Lyft doesn't own these cars, so why are they paying less? That money is going/staying in someone's pocket. The rider isn't charged less for a rental car ride.

A single line item added to the driver earnings for rental drivers would officially make this the expense that it actually is.


Diamondraider said:


> Magic = Thanking you see something that doesn't exist
> 
> But I give you an a for effort. Very creative


I get what you're saying and why you're saying it. I also know it would almost certainly be refused in an audit and I'm not suggesting anyone do this. I'm not actually disagreeing with you on the technical realities.

It's just another way that Lyft is screwing over rental drivers. Instead of charging a higher weekly fee which a driver could legally write off, they instead steal from the back end.


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## Diamondraider (Mar 13, 2017)

WAHN said:


> Nope. Because I'm not talking about "double dipping".
> 
> This would fall under the technicalities preventing it.
> 
> ...


Agreed. And to add insult, we now have a SOE preventing drivers from earning surge. The end is here


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## beezlewaxin (Feb 10, 2015)

The amount the passenger pays is the same for all drivers. The portion that Lyft keeps is accounted for in your summary as Lyft Platform Fees and Lyft Service Fees. 

These fees will be higher for Express Drive renters and will result in a higher deduction.


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