# Does anyone not use mileage vs schedule C



## Jimmy44 (Jan 12, 2020)

With tax season here curius to know does anyone not use mileage and itemize instead. I find using mileage to be easiest and best.


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## UberTaxPro (Oct 3, 2014)

I agree, the mileage method beats the actual expense method for most Uber drivers. I'm assuming you meant actual expense method instead of "itemize"


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## Scott.Sul (Sep 9, 2015)

I don't think anyone can manipulate their itemization data enough to even get close to the standard mileage amount. Just be sure when all is done, you reflect positive earnings. To many years of losing money and the IRS will  on you.


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## Jimmy44 (Jan 12, 2020)

Yes for me the 58 cents a mile as a full time driver is the best. Well there is only two choices I believe.



Scott.Sul said:


> I don't think anyone can manipulate their itemization data enough to even get close to the standard mileage amount. Just be sure when all is done, you reflect positive earnings. To many years of losing money and the IRS will  on you.


Very good point.



UberTaxPro said:


> I agree, the mileage method beats the actual expense method for most Uber drivers. I'm assuming you meant actual expense method instead of "itemize"


I heard if you go with mileage you can use cell phone deductions as well. Is that true ?


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## UberTaxPro (Oct 3, 2014)

Jimmy44 said:


> I heard if you go with mileage you can use cell phone deductions as well. Is that true ?


Business cell phone use is deductible whichever method you use.


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## Jimmy44 (Jan 12, 2020)

Also I make the IRA maximum contribution and that helps.



UberTaxPro said:


> Business cell phone use is deductible whichever method you use.


Can you simply use like 80 percent of phone bill for year ? Or do you have to be more specific ?


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## Scott.Sul (Sep 9, 2015)

Jimmy44 said:


> Also I make the IRA maximum contribution and that helps.
> 
> 
> Can you simply use like 80 percent of phone bill for year ? Or do you have to be more specific ?


I would imagine you can use whatever you want. As long as you can justify it and convince the IRS.


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## UberTaxPro (Oct 3, 2014)

Jimmy44 said:


> Can you simply use like 80 percent of phone bill for year ? Or do you have to be more specific ?


You should use a method to calculate the % like time, phone bill, etc..., you can choose the method but it must accurately reflect the business % use when all is said and done. Do it the same way each year...don't change your method for calculating the %


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## Jimmy44 (Jan 12, 2020)

UberTaxPro said:


> You should use a method to calculate the % like time, phone bill, etc..., you can choose the method but it must accurately reflect the business % use when all is said and done. Do it the same way each year...don't change your method for calculating the %


Thanks ! One more question on the Uber 2019 yearly income statement. It has gross and net income as well as online mileage. Is that the best mileage figure to use ?


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## Scott.Sul (Sep 9, 2015)

Always remember, "it's only illegal if you get caught!"


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## UberTaxPro (Oct 3, 2014)

Jimmy44 said:


> Thanks ! One more question on the Uber 2019 yearly income statement. It has gross and net income as well as online mileage. Is that the best mileage figure to use ?


If you only do Uber you can use that mileage figure. Whether or not it is the best for you depends on other factors. It's most likely the quickest and easiest way for sure.


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## Jimmy44 (Jan 12, 2020)

LOL ! Got It ! I have my Prius for business and camary for personal use. I keep my oil change receipts which records my mileage.



UberTaxPro said:


> If you only do Uber you can use that mileage figure. Whether or not it is the best for you depends on other factors. It's most likely the quickest and easiest way for sure.


Yes I use my oil change receipts as well which shows my mileage as well. I also use H+R Block.

My 2017 Prius has 268,636 miles on it. It's virtually worthless to anyone but me.


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## oldfart (Dec 22, 2017)

Scott.Sul said:


> Always remember, "it's only illegal if you get caught!"


"when in doubt deduct"


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## Jimmy44 (Jan 12, 2020)

oldfart said:


> "when in doubt deduct"


Yes do not settle for a penny less then your entitled to !


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## Stevie The magic Unicorn (Apr 3, 2018)

I’m going to deduct actual expenses on all the taxi rentals I did.


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## Jimmy44 (Jan 12, 2020)

Yes I don't think you can deduct mileage on a rented or leased vehicle. The deduction componsates for depreciation of your vehicle. A rented cab is probably better to do actual expenses.


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## Jimmy44 (Jan 12, 2020)

I do 2 full synthetic oil changes a month as well as spend a minimum of 400 on gas. 2 to 3 sets of tires a year along with standard maintenance. All these do not come close to the 58 cents a mile deduction.


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## Older Chauffeur (Oct 16, 2014)

Jimmy44 said:


> Yes I don't think you can deduct mileage on a rented or leased vehicle. The deduction componsates for depreciation of your vehicle. A rented cab is probably better to do actual expenses.


From IRS Pub. 510 (emphasis mine)

"To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

For a car you *lease*, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate.

Actual Expenses - To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that's business use. Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles."


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## Stevie The magic Unicorn (Apr 3, 2018)

What if it’s not a lease and just short term rentals?

Ie less then a week? (12 or 24 hour rentals)


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## vtcomics (Oct 9, 2018)

Someone I know uses both itemized AND standard mileage. Double dipping on deductions! I tried to tell him he's playing with fire but he shrugged.


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## Jimmy44 (Jan 12, 2020)

I use H&R Block and they would never allow it. They check it out for potential IRS red flags and that would cry out audit me.


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## Older Chauffeur (Oct 16, 2014)

I’m surprised that the IRS computers don’t catch that and red flag his return for review by a human.


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## vtcomics (Oct 9, 2018)

Older Chauffeur said:


> I'm surprised that the IRS computers don't catch that and red flag his return for review by a human.


So am I!! I'm sure they will catch up to him eventually. IRS is apparently understaffed pretty heavily.


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## Jimmy44 (Jan 12, 2020)

Older Chauffeur said:


> I'm surprised that the IRS computers don't catch that and red flag his return for review by a human.


I'm sure he has not filed yet. I am sure they will.


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## LADryver (Jun 6, 2017)

Jimmy44 said:


> LOL ! Got It ! I have my Prius for business and camary for personal use. I keep my oil change receipts which records my mileage.
> 
> 
> Yes I use my oil change receipts as well which shows my mileage as well. I also use H+R Block.
> ...


Congratulations! The battery will go and go, but you have to treat the engine well. Figure real miles on the I.C. to be maybe 120k.



vtcomics said:


> Someone I know uses both itemized AND standard mileage. Double dipping on deductions! I tried to tell him he's playing with fire but he shrugged.


You may have heard them describe the Schedule A itemized deductions use instead of the standard deduction in general, and also claiming the standard mileage rate for the business car use. The IRS will correct the tax return if they see both as you say, applying to the car expenses.


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## Jimmy44 (Jan 12, 2020)

Thanks ! I never thought of separating I.C. from Battery miles. That makes me feel much better. I will not drive with check engine light on. I also have the hybrid technicians keep close eye on radiator. I take it 5000 at a time. 4 years is my goal which is 18 months away or 36 oil changes away.


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## LADryver (Jun 6, 2017)

Jimmy44 said:


> Thanks ! I never thought of separating I.C. from Battery miles. That makes me feel much better. I will not drive with check engine light on. I also have the hybrid technicians keep close eye on radiator. I take it 5000 at a time. 4 years is my goal which is 18 months away or 36 oil changes away.


Prius Chat


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## Jimmy44 (Jan 12, 2020)

LADryver said:


> Get thee to http://priuschat.com asap.


Will do appreciate that site.


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## LordBinky (Dec 11, 2019)

UberTaxPro said:


> Business cell phone use is deductible whichever method you use.


And that's calculated as a percentage of your annual bill? I use my phone for rideshare plus unrelated calls/texts/app use and my wife is on the same plan for her calls/texts/apps. So working out a percentage won't be an exact science.


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## Stevie The magic Unicorn (Apr 3, 2018)

LordBinky said:


> And that's calculated as a percentage of your annual bill? I use my phone for rideshare plus unrelated calls/texts/app use and my wife is on the same plan for her calls/texts/apps. So working out a percentage won't be an exact science.


1/4 of your bill.

One phone is 0% business use the other is halfish?


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## Jimmy44 (Jan 12, 2020)

LordBinky said:


> And that's calculated as a percentage of your annual bill? I use my phone for rideshare plus unrelated calls/texts/app use and my wife is on the same plan for her calls/texts/apps. So working out a percentage won't be an exact science.


I thought that was the case if you went with standard mileage you also get a % of cell phone use. I am going to contact Verizon and ask for my expenses for 2019. Thanks for the clarification.


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## CaptainToo (Dec 5, 2017)

UberTaxPro said:


> If you only do Uber you can use that mileage figure. Whether or not it is the best for you depends on other factors. It's most likely the quickest and easiest way for sure.


My understanding is you need to have a mileage log that you have maintained, whether paper or computerized (ala StrideTax). A single figure frokm Uber wouldn't cut it.

Plus you lose any miles where you are driving for work but have a reason to go offline..


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## Jimmy44 (Jan 12, 2020)

CaptainToo said:


> My understanding is you need to have a mileage log that you have maintained, whether paper or computerized (ala StrideTax). A single figure frokm Uber wouldn't cut it.
> 
> Plus you lose any miles where you are driving for work but have a reason to go offline..


Thanks for the helpful info. Would the mileage on the yearly summary be a good start ?


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## CaptainToo (Dec 5, 2017)

Jimmy44 said:


> Thanks for the helpful info. Would the mileage on the yearly summary be a good start ?


No. My understanding, you either use a documentation manner specified by the IRS, or if you are audited or questioned your entire mileage deduction would be rejected.


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## Jimmy44 (Jan 12, 2020)

CaptainToo said:


> My understanding is you need to have a mileage log that you have maintained, whether paper or computerized (ala StrideTax). A single figure frokm Uber wouldn't cut it.
> 
> Plus you lose any miles where you are driving for work but have a reason to go offline..


The standard deduction is 12,200 plus


CaptainToo said:


> No. My understanding, you either use a documentation manner specified by the IRS, or if you are audited or questioned your entire mileage deduction would be rejected.


Ouch


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## Drivingmenuts (Aug 7, 2019)

Jimmy44 said:


> With tax season here curius to know does anyone not use mileage and itemize instead. I find using mileage to be easiest and best.


If you don't drive much, depreciation might be more effective, however, if you are in this forum, you probably drive at least 20k miles a year. In most cases, taking the mileage deduction is better, particularly on newer vehicles that are less prone to a breakdown. Most drivers actual costs are going to be much lower than what you get from the mileage deduction, even if you have a monthly car payment. 30k miles a year, will get you a $17.4K deduction. In addition, because you are self employed, you can write off things like cleaning supplies (but not car washes), marketing materials, cell phone costs, Sirius XM costs, and other subscriptions that apply to your driving. One item MANY miss, is if your health insurance is in your name, and not through a spouse, then you can write-off your health premiums too! More than likely, if you do it properly, you could be able to offset all your earnings, with these write-offs. Now, whether you want to or should, you should always check with a professional because it could have consequences on your future social security benefits. If you show a loss your not paying self employment tax.


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## Jimmy44 (Jan 12, 2020)

Drivingmenuts said:


> If you don't drive much, depreciation might be more effective, however, if you are in this forum, you probably drive at least 20k miles a year. In most cases, taking the mileage deduction is better, particularly on newer vehicles that are less prone to a breakdown. Most drivers actual costs are going to be much lower than what you get from the mileage deduction, even if you have a monthly car payment. 30k miles a year, will get you a $17.4K deduction. In addition, because you are self employed, you can write off things like cleaning supplies (but not car washes), marketing materials, cell phone costs, Sirius XM costs, and other subscriptions that apply to your driving. One item MANY miss, is if your health insurance is in your name, and not through a spouse, then you can write-off your health premiums too! More than likely, if you do it properly, you could be able to offset all your earnings, with these write-offs. Now, whether you want to or should, you should always check with a professional because it could have consequences on your future social security benefits. If you show a loss your not paying self employment tax.


Thanks for the valuable information. I also take the standard deduction as well as contribute max to IRA. The medical insurance was a nice surprise. Thanks again !


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## Drivingmenuts (Aug 7, 2019)

Jimmy44 said:


> Thanks for the valuable information. I also take the standard deduction as well as contribute max to IRA. The medical insurance was a nice surprise. Thanks again !


Your welcome. Regarding health premiums, those would be written off on your schedule C as an expense. If you have Obamacare, that can not be written off. Only private insurance.


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## ChuckRoberts (Jan 6, 2020)

As a brand new driver (22 Dec 19), I doubt the "on-line miles" listed in my Uber Tax Statement. I sometimes turn the app off if I need to get back home, or I shoot for a hot spot, but they only reflected 52% of my actual driving miles. That can't be true on-line miles.. 
My 2019 statement also skips earnings/trips from 12/30 and 12/31, which seems surprising on a tax statement.


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## Jimmy44 (Jan 12, 2020)

ChuckRoberts said:


> As a brand new driver (22 Dec 19), I doubt the "on-line miles" listed in my Uber Tax Statement. I sometimes turn the app off if I need to get back home, or I shoot for a hot spot, but they only reflected 52% of my actual driving miles. That can't be true on-line miles..
> My 2019 statement also skips earnings/trips from 12/30 and 12/31, which seems surprising on a tax statement.


I agree the miles on the yearly summary do not come close to your eligible deductable miles.


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## KK2929 (Feb 9, 2017)

Jimmy44 said:


> With tax season here curius to know does anyone not use mileage and itemize instead. I find using mileage to be easiest and best.


----------------------
I work up both ways and use the one that saves me money.


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## Jimmy44 (Jan 12, 2020)

KK2929 said:


> ----------------------
> I work up both ways and use the one that saves me money.


Sounds like a good plan.


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## Older Chauffeur (Oct 16, 2014)

Jimmy44 said:


> The standard deduction is 12,200 plus


You're talking apples and oranges here. The $12,200 (single filer) standard deduction is taken from your taxable income; the standard mileage rate is deducted from your ride share gross income to arrive at your net profit, which then flows to your Form 1040 to be added to your taxable income.


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