# Total Interest Paid on Vehicle?



## Geno71 (Dec 23, 2016)

_Interest Paid on Vehicle

If you used this vehicle the entire year or kept mileage records even when you weren't using it for business, enter the total amount of interest paid on this vehicle for 2016 and we will figure the amount that is deductible for this business.

If you did not use this vehicle for the entire year and entered months of business use, still enter the total amount of interest paid in 2016.
_
If I'm paying on a financed vehicle, and I have all my business mileage, but I don't have "personal mileage" other than my fill up records for 2016. Should I claim this vehicle interest paid? Turbo Tax says it can be claimed on top of standard mileage deduction, but it only makes a difference of like $12 in taxes. Does it increase a risk of audit? If so then screw it, it's $12... On the other hand, does IRS even care about $12?

Just to clarify, TT asks in earlier steps if I have a personal use mileage, I said "no", then it asks if I have business mileage, to which of course the answer is "yes", so TT calculated business mileage deduction just fine.

What do you guys do?


----------



## UberTaxPro (Oct 3, 2014)

Geno71 said:


> _Interest Paid on Vehicle
> 
> If you used this vehicle the entire year or kept mileage records even when you weren't using it for business, enter the total amount of interest paid on this vehicle for 2016 and we will figure the amount that is deductible for this business.
> 
> ...


Well if you really do use the vehicle 100% business you're certainly entitled to your $12, however I do believe that 100% business use can be a red flag. But, as long as you have records to prove it you're fine. Are you sure you have 100% business use? What about that pizza you drove a mile out of the way to pick up on your way home? Are you sure it wasn't closer to 90 or even 99% business use?


----------



## Geno71 (Dec 23, 2016)

No. Not even close to 100% business use for me. I guess the wording is confusing here: "_even when you weren't using it for business". _If it's for business use vehicle only, then I'm good, it doesn't apply to me.

Thanks


----------



## UberTaxPro (Oct 3, 2014)

Geno71 said:


> No. Not even close to 100% business use for me. I guess the wording is confusing here: "_even when you weren't using it for business". _If it's for business use vehicle only, then I'm good, it doesn't apply to me.
> 
> Thanks


Sorry I read it to fast! You should have answered yes and entered personal miles when the software asks for it.


----------



## Geno71 (Dec 23, 2016)

Thanks. It's not too late, I haven't files anything yet, you know, still waiting on those 1099s from Uber and Lyft, plus IRS in not accepting e-files yet. I will look into personal and business miles closer and correct whatever needed. I did enter starting odometer for 2016 and then ending as well as business miles.


----------



## Atom guy (Jul 27, 2016)

I have an vehicle just for Uber, so I claimed it as 100% for uber. BUT, I also have a mileage log and only claimed my uber miles, since I do drive it a bit for personal as well. 

I think we overthink doing our taxes. In all likelihood we are not making much money doing uber, so if we are doing a good faith effort to fill out the taxes properly and have documentation, if we make a mistake and get audited (extremely low probability), any taxes owed or penalties will be minimal. It's only if you are really falsifying your taxes that you need to worry about the rare audit.


----------



## Older Chauffeur (Oct 16, 2014)

Atom guy said:


> I have an vehicle just for Uber, so I claimed it as 100% for uber. BUT, I also have a mileage log and only claimed my uber miles, since I do drive it a bit for personal as well.
> 
> I think we overthink doing our taxes. In all likelihood we are not making much money doing uber, so if we are doing a good faith effort to fill out the taxes properly and have documentation, if we make a mistake and get audited (extremely low probability), any taxes owed or penalties will be minimal. It's only if you are really falsifying your taxes that you need to worry about the rare audit.


My question of you would be how can you claim 100% business use if the vehicle is also used for personal miles/driving?


----------

