# Does it sound like I filed it right?



## disp350 (Jul 16, 2016)

I use H&R Block Tax Software and it walked me through filing my Uber earnings as a small business, which I understood. I drive part time (have a full time job) and when all was said and done, I grossed about $7500 in fares last year and after it walked me through using the Standard Vehicle deduction (basically just deducting the mileage was more advantageous for me) and then deducting the Uber Service Fee plus all the other fees charged (booking fee, airport fee), it ended up showing me with about a $600 profit for the year and thats all I had to pay Federal and state taxes on. Does that sound correct to anyone is a similar situation?


----------



## Older Chauffeur (Oct 16, 2014)

disp350 said:


> I use H&R Block Tax Software and it walked me through filing my Uber earnings as a small business, which I understood. I drive part time (have a full time job) and when all was said and done, I grossed about $7500 in fares last year and after it walked me through using the Standard Vehicle deduction (basically just deducting the mileage was more advantageous for me) and then deducting the Uber Service Fee plus all the other fees charged (booking fee, airport fee), it ended up showing me with about a $600 profit for the year and thats all I had to pay Federal and state taxes on. Does that sound correct to anyone is a similar situation?


Did you deduct cell phone bills (the % of use for Uber) and anything extra for Uber or pax, like water, aux cords, etc? How about car washes that exceeded normal, say more than once a week? If you could bring your net profit down to below $400 you could save the FICA taxes.
Disclosure: I'm not a tax professional.


----------



## disp350 (Jul 16, 2016)

The cell I cant deduct cause its the one from my full time job and they pay for it . I can probably add the car washes in. But I just want to make sure that showing a profit of about $600 is right and other drivers who drive part time ended up with something similar. 

Thanks!


----------



## UberTaxPro (Oct 3, 2014)

"But I just want to make sure that showing a profit of about $600 is right and other drivers who drive part time ended up with something similar."
Everyone's situation is different. Rates are different all around the country, people drive different cars, use different equipment and drive with varied logistic issues. Congrats on showing a profit! I couldn't do it when I tried! If I worked for the IRS I'd audit a lot of other Uber drivers before I got to you!


----------



## LAuberX (Jun 3, 2014)

Sounds about right.

Sadly, the govt will try to recoup some of the standard mileage deduction when you sell the car.

There is no free lunch.


----------



## UberTaxPro (Oct 3, 2014)

LAuberX said:


> Sounds about right.
> 
> Sadly, the govt will try to recoup some of the standard mileage deduction when you sell the car.
> 
> There is no free lunch.


If you Uber with it long enough nobody will buy it anyway


----------



## Bluecrab (Oct 3, 2016)

LAuberX said:


> Sounds about right.
> 
> Sadly, the govt will try to recoup some of the standard mileage deduction when you sell the car.
> 
> There is no free lunch.


That's a new one for me. Standard mileage deduction being treated like investment real estate depreciation? It's recouped at time of car sale? Never heard of that and it would suck if it was accurate.


----------



## UberTaxPro (Oct 3, 2014)

Bluecrab said:


> That's a new one for me. Standard mileage deduction being treated like investment real estate depreciation? It's recouped at time of car sale? Never heard of that and it would suck if it was accurate.


If you dispose of depreciable or amortizable property *at a gain*, you may have to treat all or part of the gain as ordinary income. The SMD has depreciation built into it. If you sell your car *with a gain *you'll have to recapture the % of the SMD attributed to the depreciation. I think LAuberX might be the only Uber driver to ever sell his car at a gain. Yes, it works like real estate and the home office deduction also.


----------



## Bluecrab (Oct 3, 2016)

UberTaxPro said:


> If you dispose of depreciable or amortizable property *at a gain*, you may have to treat all or part of the gain as ordinary income. The SMD has depreciation built into it. If you sell your car *with a gain *you'll have to recapture the % of the SMD attributed to the depreciation. I think LAuberX might be the only Uber driver to ever sell his car at a gain. Yes, it works like real estate and the home office deduction also.


Thanks. The number cruncher in me likes learning something new. I generally keep any car purchased for 6 or 7 years. There won't be any gains on the sale of my car unless some kind of infamous event occurs inside of it. Which has happened, just not anything the general public would find of value.



disp350 said:


> Does that sound correct to anyone is a similar situation?


I'm in a similar situation and market. Drive DC/Baltimore, probably like Philly. Part time, grossed just over $4,000, taxable income was $85. Was almost $400 in profit until I deducted the mileage and 50% cost of meals for a couple of uber meetups we had in this area. Learning from other drivers is tax deductible. As was that one time I took a buddy out drinking in my attempt to recruit him as a driver. Lucky b*st*rd had an early start the next day, so no shots that night, and he declined to be a driver. 

Was really hoping for a loss to avoid taxes on some W2 income. With a full year ahead of me and thru one full tax season, I'm confident I'll do better this year. Surf and turf for my next recruitment drive.


----------



## Mars Troll Number 4 (Oct 30, 2015)

Bluecrab said:


> Thanks. The number cruncher in me likes learning something new. I generally keep any car purchased for 6 or 7 years. There won't be any gains on the sale of my car unless some kind of infamous event occurs inside of it. Which has happened, just not anything the general public would find of value.
> 
> I'm in a similar situation and market. Drive DC/Baltimore, probably like Philly. Part time, grossed just over $4,000, taxable income was $85. Was almost $400 in profit until I deducted the mileage and 50% cost of meals for a couple of uber meetups we had in this area. Learning from other drivers is tax deductible. As was that one time I took a buddy out drinking in my attempt to recruit him as a driver. Lucky b*st*rd had an early start the next day, so no shots that night, and he declined to be a driver.
> 
> Was really hoping for a loss to avoid taxes on some W2 income. With a full year ahead of me and thru one full tax season, I'm confident I'll do better this year. Surf and turf for my next recruitment drive.


In Orlando you just need a good log and you go from owing taxes to having a deduction for your other job/spouses income.


----------



## SatMan (Mar 20, 2017)

Bluecrab said:


> Thanks. The number cruncher in me likes learning something new. I generally keep any car purchased for 6 or 7 years. There won't be any gains on the sale of my car unless some kind of infamous event occurs inside of it. Which has happened, just not anything the general public would find of value.
> 
> I'm in a similar situation and market. Drive DC/Baltimore, probably like Philly. Part time, grossed just over $4,000, taxable income was $85. Was almost $400 in profit until I deducted the mileage and 50% cost of meals for a couple of uber meetups we had in this area. Learning from other drivers is tax deductible. As was that one time I took a buddy out drinking in my attempt to recruit him as a driver. Lucky b*st*rd had an early start the next day, so no shots that night, and he declined to be a driver.
> 
> Was really hoping for a loss to avoid taxes on some W2 income. With a full year ahead of me and thru one full tax season, I'm confident I'll do better this year. Surf and turf for my next recruitment drive.


You can go back, I think, 3 years and amend your tax return...after that you're out of luck.


----------



## KevRyde (Jan 27, 2015)

Bluecrab said:


> That's a new one for me. Standard mileage deduction being treated like investment real estate depreciation? It's recouped at time of car sale? Never heard of that and it would suck if it was accurate.


https://www.irs.gov/pub/irs-pdf/p463.pdf

See section "Disposition of a Car" on page 24.


----------

