# Question, NYE taxes



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

So if i rent a taxi at 10:00 am NYE and drop it off after midnight on the first, THEN pay my expenses what year does my cash revenue and expenses fall in? Like if i buy gasoline after midnight which shoebox full of receipts do they go in?
Further information, my trip receipt (the proof that I rented a taxi and used tolls) will show a date of 1/1/2021

ALSO,

My credit card revenue gets reported on the date, rather than by shift...


So for my taxes I would report my cash revenue for 2021? (The year my expenses fall into)
And my credit card revenue just gets reported on my 1099 so that's not in question.


Am i doing this right?


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## Seamus (Jun 21, 2018)

Stevie The magic Unicorn said:


> So if i rent a taxi at 10:00 am NYE and drop it off after midnight on the first, THEN pay my expenses what year does my cash revenue and expenses fall in? Like if i buy gasoline after midnight which shoebox full of receipts do they go in?
> Further information, my trip receipt (the proof that I rented a taxi and used tolls) will show a date of 1/1/2021
> 
> ALSO,
> ...


So if you are like 99% of Independent Contractors you are using the "CASH" accounting method (as opposed to accrual basis) so theoretically the transactions occur at the date of cash payment given or payment received.

For example take your Taxi rental on 12/31. If you paid CASH for the Taxi rental on 12/31 then the expense is 12/31. If you paid CASH for your taxi when returning it after midnight then your expense is 1/1. Now, if you paid by credit card on 12/31, then got your cc bill on 1/24 and paid it then technically your expense is on 1/24.

People constantly mix up "Cash Accounting" principals with "Accrual Accounting" principals. So an example of the difference. If you purchase items in December 2020 using a credit card, get your statement in January 2021 and pay it, under CASH accounting the expense is in January 2021 and under the ACCRUAL basis the expense is at the time it's incurred December 2020.

In reality, if you are a very small business no one is going to care (unless it's significant money). Many will count the expense the day they got the receipt whether they paid cash or not whether it's technically correct or not. In the real world it won't matter unless you start making serious revenue. 99.9% of IC's aren't keeping Quickbooks type P/L statements and therefore in reality aren't "posting" transactions but rather using 1099's and cc statements/bank statements for totaling up non mileage business expenses on a yearly basis.

Luckily, most GIG app drivers use the mileage expense method and use the 1099 or income summary provided as income in the year and don't have to calculate these things so precisely. This is a theoretical question for 99.9% of drivers. It is much more relevant to "real" businesses and most use the accrual basis of accounting. If you are a C corp or have $5million plus in revenue you MUST use accrual accounting.


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## DudeUbering (Sep 21, 2017)

so much wisdom


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## Uber's Guber (Oct 22, 2017)

Stevie The magic Unicorn said:


> Am i doing this right?


You should ask a qualified tax expert for this type of advice, but I would probably toss my receipts into whichever yearly shoebox applied to the date & time that is stamped on the receipts.
A safer tax strategy plan is to take the day off and don't work! :smiles:


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## FLKeys (Dec 27, 2018)

In my unprofessional opinion if you rent the Taxi before midnight all your expenses and income would apply to 2020 through quitting time on the first regardless of if it was at midnight or 2 am on the 1st.


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

The problem with that FL keys...

my _RECEIPT_ will be dated on the first, at whatever time i turn it in. Therefore if I'm audited those expenses will point to the date/time printed on the receipt. I don't pay anything until I'm turning in the car at the end of the shift. Also I have to put gas in the car. Whether i buy from the company pump or the 711 that transaction won't occur until after midnight either.

And my credit card revenue will be split depending on what _*time*_ the transaction was processed, then put on either my 1099 for 2020 or 2021.

and TECHNICALLY the cash revenue?

well that's the question...

So i guess under the law i need to total up my revenue and split it between 2021 and 2022 at before midnight and after midnight?

I guess i answered my own questions...

Annoying but it is what it is...

And i was planning on keeping on the clock and trying for airport runs from people departing to go home. So if there's any airport fares coming out i may stay out until 9:00 am.

(while this might not be 100% kosher) I'm thinking I'm going to put all my cash on 2021 where all my expenses are for the night. It will also save me from having to split my cash between 2 days.

But i guess on the plus side everything i make on NYE between picking up the car and midnight is 100% profit?


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## FLKeys (Dec 27, 2018)

Stevie The magic Unicorn said:


> The problem with that FL keys...
> 
> my _RECEIPT_ will be dated on the first, at whatever time i turn it in. Therefore if I'm audited those expenses will point to the date/time printed on the receipt. I don't pay anything until I'm turning in the car at the end of the shift. Also I have to put gas in the car. Whether i buy from the company pump or the 711 that transaction won't occur until after midnight either.
> 
> ...


If I remember correctly it does not matter if your receipts show Jan 1st as long as your records are consistent year to year that you end your business day at or around the same time each year.


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## UberTaxPro (Oct 3, 2014)

Seamus said:


> So if you are like 99% of Independent Contractors you are using the "CASH" accounting method (as opposed to accrual basis) so theoretically the transactions occur at the date of cash payment given or payment received.
> 
> For example take your Taxi rental on 12/31. If you paid CASH for the Taxi rental on 12/31 then the expense is 12/31. If you paid CASH for your taxi when returning it after midnight then your expense is 1/1. Now, if you paid by credit card on 12/31, then got your cc bill on 1/24 and paid it then technically your expense is on 1/24.
> 
> ...


With the CC thing, you're correct but you do have the option to use 2 methods for recording expenses when using the cash method. Most record the expense when the purchase is made on the cc. How often do you get to deduct a loan as an expense? https://quickbooks.intuit.com/learn...e-treated-for-cash-basis-statements/00/186272


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

What loan?

I rent the taxis..

And new years eve was grand and glorious I tell you...


Managed to snag a 2018 taxi with under 100,000 miles and it was amazing i tell you...

Pulled $570 in revenue, $230 cash $360 credit cards.

my profit on the night was $580


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