# Which method do you use to deduct vehicle expenses?



## Outsider626 (Dec 29, 2018)

Hello everyone. Curious to know what method most use: Standard Mileage Method or Actual Expense Method?


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## Z129 (May 30, 2018)

Standard Per-Mile Deduction is easier for me. Less to keep track of. Effectively erases any taxes owed on my ride-share earnings.


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## Outsider626 (Dec 29, 2018)

Z129 said:


> Standard Per-Mile Deduction is easier for me. Less to keep track of. Effectively erases any taxes owed on my ride-share earnings.


Are you filing tax return by yourself or hire an accountant? During this year I worked for Uber, Lyft and Juno. I will most likely get 3 forms of 1099-MISC and 2 1099-K. Not sure If i have to create a schedule C for each of them separately or put the total on one schedule C for all of them.


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## Z129 (May 30, 2018)

I file myself. I add up everything and use one schedule C. I haven't been audited yet.


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## Outsider626 (Dec 29, 2018)

Z129 said:


> I file myself. I add up everything and use one schedule C. I haven't been audited yet.


Good to know. Thanks.


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## Seamus (Jun 21, 2018)

Outsider626 said:


> Are you filing tax return by yourself or hire an accountant? During this year I worked for Uber, Lyft and Juno. I will most likely get 3 forms of 1099-MISC and 2 1099-K. Not sure If i have to create a schedule C for each of them separately or put the total on one schedule C for all of them.


One schedule C for all of them.


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## Pax Collector (Feb 18, 2018)

I use the standard mileage deduction and add my insurance and car payments on top of it. I declare a loss and Uncle Sam has no problem believing me.


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## Outsider626 (Dec 29, 2018)

Pax Collector said:


> I use the standard mileage deduction and add my insurance and car payments on top of it. I declare a loss and Uncle Sam has no problem believing me.


I thought you can't deduct those if you are using SMD?


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## Pax Collector (Feb 18, 2018)

Outsider626 said:


> I thought you can't deduct those if you are using SMD?


Yes you can. The SMD only covers gas, maintenance and wear and tear. Your car payment (The interest portion of it) and insurance aren't included in that equation.


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## Outsider626 (Dec 29, 2018)

Pax Collector said:


> Yes you can. The SMD only covers gas, maintenance and wear and tear. Your car payment (The interest portion of it) and insurance aren't included in that equation.


I don't believe you. Good try


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## Pax Collector (Feb 18, 2018)

Outsider626 said:


> I don't believe you. Good try


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## MikeNY (May 6, 2016)

Any of you open a corporation?


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## Pax Collector (Feb 18, 2018)

MikeNY said:


> Any of you open a corporation?


That could be a good idea but I don't do it enough to justify the expense.


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## Older Chauffeur (Oct 16, 2014)

Pax Collector said:


> Yes you can. The SMD only covers gas, maintenance and wear and tear. Your car payment (The interest portion of it) and insurance aren't included in that equation.


Per IRS Pub 463, the cost of insurance is included in the SMR. Things that can be added include the business use percentage of interest on a car loan, as you mentioned, along with tolls and parking fees incurred while engaged in business activities. Personal property taxes and registration fees charged by state and local governments can also be added, again just the percentage for business use. A case might be made for extra car washes needed because the car is used in ride sharing, maybe beyond once a week, provided one has all the receipts, of course.
It all comes down to what flags your return for closer scrutiny and what an auditor will accept.

Disclaimer: I'm not a tax professional.


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## Outsider626 (Dec 29, 2018)

Older Chauffeur said:


> Per IRS Pub 463, the cost of insurance is included in the SMR. Things that can be added include the business use percentage of interest on a car loan, as you mentioned, along with tolls and parking fees incurred while engaged in business activities. Personal property taxes and registration fees charged by state and local governments can also be added, again just the percentage for business use. A case might be made for extra car washes needed because the car is used in ride sharing, maybe beyond once a week, provided one has all the receipts, of course.
> It all comes down to what flags your return for closer scrutiny and what an auditor will accept.
> 
> Disclaimer: I'm not a tax professional.


This chart shows nicely what you can deduct. Common operating expenses + AM or SM.


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## tohunt4me (Nov 23, 2015)

Mileage.
Nice & Simple.


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