# Another tax question



## mandreyka (Sep 25, 2015)

Ok so Jan-June I was using my wife's car to do rideshare and tracked all the mileage 

In June I bought a car solely for Uber use and it sits there when I'm not using it. I have a company car so the only time I use my uber car is when I'm driving uber and if I use it for other stuff I app on and take a ping here and there. 

So should I file mileage or can I deduct all my payments and expenses?


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## UberTaxPro (Oct 3, 2014)

mandreyka said:


> Ok so Jan-June I was using my wife's car to do rideshare and tracked all the mileage
> 
> In June I bought a car solely for Uber use and it sits there when I'm not using it. I have a company car so the only time I use my uber car is when I'm driving uber and if I use it for other stuff I app on and take a ping here and there.
> 
> So should I file mileage or can I deduct all my payments and expenses?


The only way to be 100% sure which method, mileage or actual expenses is better, is to figure your tax both ways and see which way comes out better. If you start with the actual expense method you won't be able to switch to the mileage method in future years with the same vehicle. Also, whichever way you choose you'll still need a mileage log kept on a daily basis even if you use the vehicle 100% for business. Most Uber drivers will do better with the mileage method by the way.


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## mandreyka (Sep 25, 2015)

UberTaxPro said:


> The only way to be 100% sure which method, mileage or actual expenses is better, is to figure your tax both ways and see which way comes out better. If you start with the actual expense method you won't be able to switch to the mileage method in future years with the same vehicle. Also, whichever way you choose you'll still need a mileage log kept on a daily basis even if you use the vehicle 100% for business. Most Uber drivers will do better with the mileage method by the way.


Thanks for the advice, I will talk to my tax guy too. I haven't tracked mileage since just because I just figured all miles are uber. I guess I better make a log


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

UberTaxPro said:


> The only way to be 100% sure which method, mileage or actual expenses is better, is to figure your tax both ways and see which way comes out better. If you start with the actual expense method you won't be able to switch to the mileage method in future years with the same vehicle. Also, whichever way you choose you'll still need a mileage log kept on a daily basis even if you use the vehicle 100% for business. Most Uber drivers will do better with the mileage method by the way.


you CAN'T actually know which way comes out better for you until you sell the car in question, as in you don't really know how much it truly depreciated until you sell it. In general the per mile ends up working out better except for high high high value cars, IE Escalades ect.


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## UberTaxPro (Oct 3, 2014)

Mears Troll Number 4 said:


> you CAN'T actually know which way comes out better for you until you sell the car in question, as in you don't really know how much it truly depreciated until you sell it. In general the per mile ends up working out better except for high high high value cars, IE Escalades ect.


You CAN actually know for the current tax year. Also, vehicles have depreciation limits so you can figure the long term using those. Even with high value cars people that drive a lot of miles (like most Uber drivers) are better off with the mileage method due to the depreciation limits.


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