# Question about Schedule C



## ChiGuy (Jul 18, 2017)

Hi everyone, I am about to submit my return by mail to IRS, but before that I'd like to make sure I am not missing anything, I am not a tax expert that's why I am using turbotax.
Here is the information I have from Lyft and Uber tax forms:

Uber:
1555 Miles
203 Trips
Gross earnings: $2555
Expenses, Fees and Taxes: $644
Net payout: $1913
Total Additional Earnings: $545

Lyft:
1099K - Gross: $10,718
1099 Misc - Non employee compensation - $1491
Lyft Summary: 
Total Ride payments: $8677
Total Non-ride payments: $1491
Express pay Fees: -$14.50
Total Rides: 1011
In ride Miles: 4698
Out of ride Miles: 626

I have logged 12274 business miles in total including the dead miles.
I have listed on Part V - Other expenses: Lyft commissions $2144 (as taking off 20% of the gross)
Note that I have deducted the following expenses:
Supplies: $50
Cell phone: $250
Toll: $65
Total Interest pay on the car: $286 (the auto loan is on my wife's name)

Please take a look at my Schedule C form below and let me know if I am mistaken somewhere.



http://imgur.com/ZAIWP




http://imgur.com/EUt7V


Also what does it mean 'accounting method' on field F on the first screenshot?


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## UberTaxPro (Oct 3, 2014)

ChiGuy said:


> Hi everyone, I am about to submit my return by mail to IRS, but before that I'd like to make sure I am not missing anything, I am not a tax expert that's why I am using turbotax.
> Here is the information I have from Lyft and Uber tax forms:
> 
> Uber:
> ...


Based on your business % use of the vehicle you should only deduct $157 dollars of the loan interest. 
I suggest you select the Cash accounting method. Without going into detail it's simpler.

You could also deduct a business % of the tax software expense.


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## ChiGuy (Jul 18, 2017)

Thank you TaxPro, but how many percent from the tax software? I paid $160 for self employed and state together. Does my numbers looks right? I haven't deducted car insurance and Uber fees(only Lyft commissions). The field number 10 is empty, should I place anything there?


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## UberTaxPro (Oct 3, 2014)

Why aren't you deducting all your Uber/lyft fees and expenses? You can put them on line 10 if you want. 
You can't deduct car insurance when using the standard mileage rate. 
I'd figure business % based on your gross income and gross schedule c income, so if your gross income (on 1040) was 100,00 and schedule c gross income 12,000 you'd deduct 12% of the cost. Or, you could deduct the price difference between SE software and regular 1040 software. Your numbers should be right not "look right" haha. Only you know that! 
Why do you have $250 of utilities?​


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## RamzFanz (Jan 31, 2015)

I'm pretty sure you can't deduct auto interest if you're going the standard mileage route.


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## UberTaxPro (Oct 3, 2014)

RamzFanz said:


> I'm pretty sure you can't deduct auto interest if you're going the standard mileage route.


You can deduct interest on an auto loan, registration and property tax fees, and parking and tolls in addition to the standard mileage rate deduction, as long as you can prove that they are business expenses.
https://www.nolo.com/legal-encyclopedia/how-deduct-your-local-business-driving-expenses.html


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## RamzFanz (Jan 31, 2015)

UberTaxPro said:


> You can deduct interest on an auto loan, registration and property tax fees, and parking and tolls in addition to the standard mileage rate deduction, as long as you can prove that they are business expenses.
> https://www.nolo.com/legal-encyclopedia/how-deduct-your-local-business-driving-expenses.html


Great. Thanks!


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## EdThatUberGuy (Feb 20, 2019)

ChiGuy said:


> Hi everyone, I am about to submit my return by mail to IRS, but before that I'd like to make sure I am not missing anything, I am not a tax expert that's why I am using turbotax.
> Here is the information I have from Lyft and Uber tax forms:
> 
> Uber:
> ...


It doesn't look like you have deducted your standard mileage allowance. 12274 business miles x .545 (for CY2017) = $6689. Dead miles are deductible, as long as you weren't running errands or doing personal business during the dead miles.


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## EdThatUberGuy (Feb 20, 2019)

UberTaxPro said:


> Why aren't you deducting all your Uber/lyft fees and expenses? You can put them on line 10 if you want.​You can't deduct car insurance when using the standard mileage rate.​I'd figure business % based on your gross income and gross schedule c income, so if your gross income (on 1040) was 100,00 and schedule c gross income 12,000 you'd deduct 12% of the cost. Or, you could deduct the price difference between SE software and regular 1040 software. Your numbers should be right not "look right" haha. Only you know that!​Why do you have $250 of utilities?​


Hello Ubertaxpro -
Quick question related to some of the above remarks. You say to put the Uber fees and expenses on line 10 of schedule C. Is it better to put them on line 10, or does it matter oif you put them in Part V "Other" expenses?
Also on schedule C - Line 32 - for most of us ride share drivers, should we check box 32A for "All investment is at risk"? Or should it be box 32C "N/A"?
Thanks.


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## UberTaxPro (Oct 3, 2014)

EdThatUberGuy said:


> Hello Ubertaxpro -
> Quick question related to some of the above remarks. You say to put the Uber fees and expenses on line 10 of schedule C. Is it better to put them on line 10, or does it matter oif you put them in Part V "Other" expenses?
> Also on schedule C - Line 32 - for most of us ride share drivers, should we check box 32A for "All investment is at risk"? Or should it be box 32C "N/A"?
> Thanks.


It really doesn't matter if you put fees on line 10 or other expenses. The bottom line will still come out the same. If you put them in other expenses you can have one line for fees, one line for expenses etc... to make it more clear what the expenses are for.
You can only deduct up to the amount of your investment at risk, so for most checking box 32A is correct, unless you're not using your money for this business.


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## BCS DRIVER (Oct 25, 2018)

UberTaxPro said:


> You can't deduct car insurance when using the standard mileage rate.


Can you deduct the insurance ride share endorsement cost even if using the standard mileage rate?



UberTaxPro said:


> Why do you have $250 of utilities?


On Schedule C part II Line 25 Utilities: This is where cell phone costs and usage fees show up. I saw that on my print out so I went back into TT and double checked and the figures I entered for these costs matched what was shown on Line 25.


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## Ping.Me.More (Oct 27, 2018)

ChiGuy said:


> Hi everyone, I am about to submit my return by mail to IRS, but before that I'd like to make sure I am not missing anything, I am not a tax expert that's why I am using turbotax.
> Here is the information I have from Lyft and Uber tax forms:
> 
> Uber:
> ...


Rideshare driver forums are not the #1 smartest place to get tax advice from.


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## FLKeys (Dec 27, 2018)

BCS DRIVER said:


> Can you deduct the insurance ride share endorsement cost even if using the standard mileage rate?


I have asked several tax accountants this question with mixed replies. Based on all the responses I received on this I am going to roll the dice and take it as an other expense. One could argue that it is an additional expense that you would not have if you were no doing rideshare. I think this is a valid argument and if the IRS does not agree with you under Audit the worse would be owing the additional tax and interest on the deduction and the IRS would wave penalties. This is my opinion and only my opinion based on talking to 5 different tax specialists.


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## BCS DRIVER (Oct 25, 2018)

FLKeys said:


> I have asked several tax accountants this question with mixed replies. Based on all the responses I received on this I am going to roll the dice and take it as an other expense. One could argue that it is an additional expense that you would not have if you were no doing rideshare. I think this is a valid argument and if the IRS does not agree with you under Audit the worse would be owing the additional tax and interest on the deduction and the IRS would wave penalties. This is my opinion and only my opinion based on talking to 5 different tax specialists.


You having spoken to several tax accountants makes me agree with you about doing that.


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## UberTaxPro (Oct 3, 2014)

FLKeys said:


> I have asked several tax accountants this question with mixed replies. Based on all the responses I received on this I am going to roll the dice and take it as an other expense. One could argue that it is an additional expense that you would not have if you were no doing rideshare. I think this is a valid argument and if the IRS does not agree with you under Audit the worse would be owing the additional tax and interest on the deduction and the IRS would wave penalties. This is my opinion and only my opinion based on talking to 5 different tax specialists.


Just curious...how much does that insurance cost you?


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## BCS DRIVER (Oct 25, 2018)

UberTaxPro said:


> Just curious...how much does that insurance cost you?


Mine's about $11 a month through State farm.


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## FLKeys (Dec 27, 2018)

UberTaxPro said:


> Just curious...how much does that insurance cost you?


$260.00 per year.


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## EdThatUberGuy (Feb 20, 2019)

FLKeys said:


> $260.00 per year.


What company are you getting your rideshare insurance endorsement from?


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## FLKeys (Dec 27, 2018)

EdThatUberGuy said:


> What company are you getting your rideshare insurance endorsement from?


In Florida - Progressive.


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## valuber (Apr 13, 2019)

ChiGuy said:


> Hi everyone, I am about to submit my return by mail to IRS, but before that I'd like to make sure I am not missing anything, I am not a tax expert that's why I am using turbotax.
> Here is the information I have from Lyft and Uber tax forms:
> 
> Uber:
> ...





ChiGuy said:


> Hi everyone, I am about to submit my return by mail to IRS, but before that I'd like to make sure I am not missing anything, I am not a tax expert that's why I am using turbotax.
> Here is the information I have from Lyft and Uber tax forms:
> 
> Uber:
> ...


Where did you place your Uber Fees of $644 on your Schedule C? That is a deductible expense but didn't see it yet.

Why would you have a "Utilities" expense of $25? How was that calculated?


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