# Basic tax Q & A



## Schwaeky (Feb 26, 2016)

Relatively new to platform, but married to a tax accountant. Anyone needin some basic rules of thumb to avoid hot water with the taxman some basics, especially if you are doing this full time like I am.

Treat it like a business, because for all intensive purposes it is for you.

Regardless of how you set direct deposit of your pay, have a separate savings or checking account to park your money you hold back weekly for taxes. Depending on how prolific you are, you may have to pay quarterly estimates, so this is essential. 20% should be sufficent to cover federal income tax, both sides of FICA, and state income tax in most jurisdictions. Some higher tax areas withhold to said account as much as 25%. 

Track your mileage from wheels up when you start to go online to wheels down wrapping up for day or night. My whip an 06 Buick Lucerne, has two separate trip meters in the Driver Information center, this information vital at tax time, because you can deduct so many cents per mile driven (52 cents I believe). Keep fuel reciepts as well as receipts for basic maintenance, repairs and upkeep. If you provide special amenities (water candies barf bags etc) those are deductible too of course.

If you buy a dedicated vehicle new, you can depending on vehicle deduct full cost or straight line depreciate it as well.

Other tips out there certainly help, but we are talking about the fundamental basic musts here. Even if you screw up on the edges and details, doing these will keep you out of hot water with the taxman.


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## UberTaxPro (Oct 3, 2014)

For most drivers the standard mileage deduction (.575 cents for 2015) is the largest deduction they'll have. If you use the standard mileage deduction you can't deduct " fuel reciepts as well as receipts for basic maintenance, repairs and upkeep". Also if you buy a "new" vehicle and deduct it (section 179 deduction) and or depreciate it you won't be able to use the standard mileage deduction for that vehicle ever. You'll have to use the actual expense method at that point. Also just to clarify the car doesn't have to be a "new" car, just new to you. 
Your advice about treating TNC driving like a business is well taken. It is in fact a business and this surprises many drivers at tax time. Estimated taxes are required if your gonna owe $1000.00 at the end of the year. With the low and getting lower uber mileage rates however, most drivers don't reach the $1000 threshold. Since it is a business drivers should question whether it is worth it to keep driving when even the IRS agrees that they're not making any money!


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## Columbia Research (Feb 25, 2016)

Both Hurdlr and Sherpashare will improve this tracking and provide reports, from my research and experience. 
Similar to buying a new car, leasing a car through Breeze is also a business expense.


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## UberTaxPro (Oct 3, 2014)

Columbia Research said:


> Both Hurdlr and Sherpashare will improve this tracking and provide reports, from my research and experience.
> Similar to buying a new car, leasing a car through Breeze is also a business expense.


If you use the standard mileage rate , you cannot deduct your actual car expenses for that year. You cannot deduct depreciation, *lease payments,* maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees


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## flinflan (Oct 25, 2015)

Thanks you answered my question I wasn't sure if I sure just use the Milage rate allowed by the IRS or if I should itemize expense . I am going to take the 575 cents/mile rate allowed by the IRS . I am not a full time driver but if your not averaging at least 54 cents/mile from the beginning of your on line time to the end you are losing money. I figured I lost $300 last year. I watch my miles very carefully . I am fortunate I don't need this as a full time gig . I don't how you full timers are making any money. Be safe


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## UberTaxPro (Oct 3, 2014)

flinflan said:


> Thanks you answered my question I wasn't sure if I sure just use the Milage rate allowed by the IRS or if I should itemize expense . I am going to take the 575 cents/mile rate allowed by the IRS . I am not a full time driver but if your not averaging at least 54 cents/mile from the beginning of your on line time to the end you are losing money. I figured I lost $300 last year. I watch my miles very carefully . I am fortunate I don't need this as a full time gig . I don't how you full timers are making any money. Be safe


Everybody's working for the tax benifit! LOL


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## therides (Mar 1, 2016)

Deleted .


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## UberTaxPro (Oct 3, 2014)

theridesharecpa.com If you use the vehicle 50% or less for business, you can't claim the Sec. 179 expense option or faster MACRS depreciation. Is that what your talking about? That's not true otherwise.


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## Schwaeky (Feb 26, 2016)

If I make 120 a day, it likely costs me at most 18-20 in gas, so likely that 6 hours since I run a few hours mid afternoon while wife is at work, and several more hours late night...


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## therides (Mar 1, 2016)

UberTaxPro said:


> theridesharecpa.com If you use the vehicle 50% or less for business, you can't claim the Sec. 179 expense option or faster MACRS depreciation. Is that what your talking about? That's not true otherwise.


Yes, I am sorry.


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## 412media (Mar 8, 2016)

Schwaeky said:


> for all intensive purposes it is for you.


Just an FYI: The phrase is actually: _*for all intents and purposes.*_ You have to be very Pacific when you use that phrase...


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## Schwaeky (Feb 26, 2016)

Grrrrr


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## 412media (Mar 8, 2016)




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