# Simple tax question



## reg barclay (Nov 3, 2015)

I understand that we have the option to either use the standard IRS mileage deduction rate or we can itemize all of our driving expenses such as gas, maintenance, etc, separately if we like. Is this correct?

Thanks


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## Disgusted Driver (Jan 9, 2015)

reg barclay said:


> I understand that we have the option to either use the standard IRS mileage deduction rate or we can itemize all of our driving expenses such as gas, maintenance, etc, separately if we like. Is this correct?
> 
> Thanks


Yes and if you itemize don't forget depreciation!

If you drive a decent number of miles then just take the mileage, it's easier and usually more.


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## SEAL Team 5 (Dec 19, 2015)

reg barclay said:


> I understand that we have the option to either use the standard IRS mileage deductions rate or we can itemize all of our driving expenses such as gas, maintenance, etc, separately if we like. Is this correct?
> 
> Thanks


Yes it is correct. Once you use the actual expense on a vehicle you can not switch to the standard mileage deduction the next year. Also with actual expenses you have to keep track of your personal miles and your business miles as those will be the ratio of what actual business vehicle expense percentage you can deduct. And be careful with depreciation because you have to claim any revenue from the sale of the vehicle you're taking the depreciation from. In my opinion the standard IRS deduction is the best route for TNC drivers.


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## jgiun1 (Oct 16, 2017)

My tax preparation people did: mileage deduction, 50% of previous year tax preparing cost, 80% phone bill usage and percentage of my car loan interest paid in 2017.

I Don't see how miles wouldn't be the way to go unless you have a fleet. You only get a percentage of your usage actually used for business purposes. If your part time, could factor to be only like only 10-20% of business usage.

I just know the stuff my tax preparation lady added to the mileage came with certain percentages of use per month. So I can't picture you could itemize and claim full priced oil changes for something your doing 10% of the time. Even depreciation would be a percentage of what business use is.


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## paulmsr (Jul 12, 2016)

wow 80% of your phone bill... i did the percentage of time I drove as the percentage of my phone payments, since that would be the time it was spent for work. much like mileage


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## jgiun1 (Oct 16, 2017)

paulmsr said:


> wow 80% of your phone bill... i did the percentage of time I drove as the percentage of my phone payments, since that would be the time it was spent for work. much like mileage


I'm full time driver and 80% is accurate for my cell phone usage for ridesharing. My miles were pretty much similar... I drove my car probably 85% for business use in 2017.


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## paulmsr (Jul 12, 2016)

jgiun1 said:


> I'm full time driver and 80% is accurate for my cell phone usage for ridesharing.


that's crazy!! i drive p/t and my total hours spent driving was about 12% of the amount of hours in a year, so that's what i went with. 80%?? geez I can't imagine that, that's essentially living in a car


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## jgiun1 (Oct 16, 2017)

paulmsr said:


> that's crazy!! i drive p/t and my total hours spent driving was about 12% of the amount of hours in a year, so that's what i went with. 80%?? geez I can't imagine that, that's essentially living in a car


I don't get what your saying with the hours in a year.....my miles accounted for 85% of total miles for the year....what's that have to do with living in your car?

You said yourself you do similar with mileage and phone usage. So if I have 85% on total miles driven in 2017 claimed, don't think listing 80% of my phone bill for driving is far fetched.

I don't live in my car, but I have a structure for forty hours a week like any other normal job. I just select the best times to do it in without having much downtime.


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## paulmsr (Jul 12, 2016)

No with my phone i went with the time percentage of the day. i did that as its a fairer representation as how your phone is used. using the mileage percentage is saying that phone is only used when you drive, which isnt the case.

things car related i went with the mileage percentage.


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## jgiun1 (Oct 16, 2017)

paulmsr said:


> No with my phone i went with the time percentage of the day. i did that as its a fairer representation as how your phone is used. using the mileage percentage is saying that phone is only used when you drive, which isnt the case.
> 
> things car related i went with the mileage percentage.


If I get an audit, I'm hitting this post first to tell you, YOUR RIGHT, trust me.
I pay to have my taxes done so I don't sweat out being wrong and have to spend an afternoon drinking coffee with IRS agents.


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## paulmsr (Jul 12, 2016)

jgiun1 said:


> If I get an audit, I'm hitting this post first to tell you, YOUR RIGHT, trust me.
> I pay to have my taxes done so I don't sweat out being wrong and have to spend an afternoon drinking coffee with IRS agents.


Yea I normally just use turbotax but i'm very conservative w/ my deductions like that. My first thought w/ phone was how much do i use it compared to work. kind of like how many miles vs normal miles.


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## jgiun1 (Oct 16, 2017)

paulmsr said:


> Yea I normally just use turbotax but i'm very conservative w/ my deductions like that. My first thought w/ phone was how much do i use it compared to work. kind of like how many miles vs normal miles.


I had to go professional, I lack the knowledge to figure out where all this stuff goes and in what forms I need exactly for everything. ....have kids (Tax credits), house, wife's job, this rideshare stuff. I pay about 520 bucks to do federal, state taxes and just be done with it. HR block charged 490 last year and I paid 520 this year for Jackson Hewitt.

They do make it easy with amounts on sticky notes stuck to self addressed envelopes I have to send out for local 1% income, plus any State owed payments.


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