# IRS standard mileage deduction



## uberfraud (Sep 22, 2016)

Hello. I intend to use the irs standard mileage deduction rate of .54cent per mile when i file for taxes. i have a question regarding mileage tracking? 

I was under the assumption, only the miles incurred while transporting the passenger from pick up point and dropping passenger off at destination is used for standard irs mileage deduction and this information is provided by lyft & uber at the end of year? 

Now I've seen mileage tracking apps and I am now wondering what is the correct way to capture your mileage for tax purposes? Ideally, I would prefer to capture mileage when starting my uber or lyft shift till the time I end my shift. 

Thoughts? I am perplexed!


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## 14gIV (Dec 12, 2015)

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


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## Older Chauffeur (Oct 16, 2014)

You definitely want to track all your rideshare miles, including "dead" miles with no pax but with the app on, waiting for pings. I'm not familiar with the tracking apps, although I have seen posts by others discussing the pros and cons.
I do it the old fashioned way, writing beginning and ending odometer readings in a Day Planner. This was on the advice of my CPA back in 2002 when I started my contract driving business. There weren't any apps back then. So I'm still doing it the old way. You know what they say about old dogs and new tricks.....


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## renbutler (Jul 25, 2015)

Track any mile directly related to ride sharing, that you wouldn't have otherwise been driving.

The exception is if you don't turn on the app until you get to a certain area, and you then turn it off before heading home. That would be a commute.


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## uberfraud (Sep 22, 2016)

Older Chauffeur said:


> You definitely want to track all your rideshare miles, including "dead" miles with no pax but with the app on, waiting for pings. I'm not familiar with the tracking apps, although I have seen posts by others discussing the pros and cons.
> I do it the old fashioned way, writing beginning and ending odometer readings in a Day Planner. This was on the advice of my CPA back in 2002 when I started my contract driving business. There weren't any apps back then. So I'm still doing it the old way. You know what they say about old dogs and new tricks.....


Thanks I will do that. Appreciate the info, useful.


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## uberfraud (Sep 22, 2016)

renbutler said:


> Track any mile directly related to ride sharing, that you wouldn't have otherwise been driving.
> 
> The exception is if you don't turn on the app until you get to a certain area, and you then turn it off before heading home. That would be a commute.


Thanks very useful information. I will start tracking.


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## joecool1885 (Dec 2, 2015)

renbutler said:


> Track any mile directly related to ride sharing, that you wouldn't have otherwise been driving.
> 
> The exception is if you don't turn on the app until you get to a certain area, and you then turn it off before heading home. That would be a commute.


Good to know. For most of the year I was logging individual trips, (very time consuming). Started photographing odo a few weeks ago when I increased my driving time. Crap though... sometimes end up 120 miles from home. If I turn it off to go home, seriously can't deduct that?


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## renbutler (Jul 25, 2015)

joecool1885 said:


> Good to know. For most of the year I was logging individual trips, (very time consuming). Started photographing odo a few weeks ago when I increased my driving time. Crap though... sometimes end up 120 miles from home. If I turn it off to go home, seriously can't deduct that?


If the entire point of the trip was ride-sharing, yes I would absolutely say count it. But that also assumes that your home is your base where you started from.


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## observer (Dec 11, 2014)

joecool1885 said:


> Good to know. For most of the year I was logging individual trips, (very time consuming). Started photographing odo a few weeks ago when I increased my driving time. Crap though... sometimes end up 120 miles from home. If I turn it off to go home, seriously can't deduct that?


You should be tracking miles from the time you turn ON your app, till the time you turn OFF your app. So turn it on and off in your driveway.

What I do is I write down my mileage at start of work day then at end of work day, deduct difference and that is your daily miles. Keep GOOD records in case of audit.


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## joecool1885 (Dec 2, 2015)

renbutler said:


> If the entire point of the trip was ride-sharing, yes I would absolutely say count it. But that also assumes that your home is your base where you started from.


I travel from my house Sacramento about 30-40 miles west to Vacaville before turning on the app to drive the San Francisco Bay, and the entire point of driving out there is to rideshare. When I am done, wherever I end up (as far south as San Jose, 110-120 miles from home), I drive home from- usually with the app off (If I leave it on, I'll never get home)



observer said:


> You should be tracking miles from the time you turn ON your app, till the time you turn OFF your app. So turn it on and off in your driveway.
> 
> What I do is I write down my mileage at start of work day then at end of work day, deduct difference and that is your daily miles. Keep GOOD records in case of audit.


I don't turn on the app in my driveway, because I don't often drive in the area I live. I usually drive 30-40 miles in before turning the app on, otherwise I'll just get stuck driving around my town all day (about 1/2 what I make in the bay). I don't know how anyone can finish their day, leave the app on, and not turn it off until you get in your driveway, too much potential to get more requests.

I've been keeping detailed records (addresses and all) until a few weeks ago. A few weeks ago I started the method where each day I set my car's trip function to 0, drive all day, and when I get home I take a photo of how many miles I drove.


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## renbutler (Jul 25, 2015)

Then the drive from home to Vacaville (and back home from there at the end of the day) is a commute, and should not be included as deductible mileage.


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## joecool1885 (Dec 2, 2015)

renbutler said:


> Then the drive from home to Vacaville (and back home from there at the end of the day) is a commute, and should not be included as deductible mileage.


Ok, so my next question: If I set the destination filter (searches for trips headed towards a destination driver sets), and leave the app on, but get no requests, can I call that deductible mileage?


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## renbutler (Jul 25, 2015)

If there's a realistic chance of getting a request that you fully plan on accepting and executing, it seems to me that they would be legitimate business miles.

Note that I am not a tax professional, and my advice shouldn't replace that of a qualified expert.


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## observer (Dec 11, 2014)

joecool1885 said:


> I travel from my house Sacramento about 30-40 miles west to Vacaville before turning on the app to drive the San Francisco Bay, and the entire point of driving out there is to rideshare. When I am done, wherever I end up (as far south as San Jose, 110-120 miles from home), I drive home from- usually with the app off (If I leave it on, I'll never get home)
> 
> I don't turn on the app in my driveway, because I don't often drive in the area I live. I usually drive 30-40 miles in before turning the app on, otherwise I'll just get stuck driving around my town all day (about 1/2 what I make in the bay). I don't know how anyone can finish their day, leave the app on, and not turn it off until you get in your driveway, too much potential to get more requests.
> 
> I've been keeping detailed records (addresses and all) until a few weeks ago. A few weeks ago I started the method where each day I set my car's trip function to 0, drive all day, and when I get home I take a photo of how many miles I drove.


Just writing down the daily miles driven is insuffient. You need beginning and ending odometer readings.


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## Fuzzyelvis (Dec 7, 2014)

Older Chauffeur said:


> You definitely want to track all your rideshare miles, including "dead" miles with no pax but with the app on, waiting for pings. I'm not familiar with the tracking apps, although I have seen posts by others discussing the pros and cons.
> I do it the old fashioned way, writing beginning and ending odometer readings in a Day Planner. This was on the advice of my CPA back in 2002 when I started my contract driving business. There weren't any apps back then. So I'm still doing it the old way. You know what they say about old dogs and new tricks.....


Funny. I have a day planner too. I write my tips down as well so I can always figure out exactly how much I made. Of course that's a lot more with pizza than uber...


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## Fuzzyelvis (Dec 7, 2014)

joecool1885 said:


> I travel from my house Sacramento about 30-40 miles west to Vacaville before turning on the app to drive the San Francisco Bay, and the entire point of driving out there is to rideshare. When I am done, wherever I end up (as far south as San Jose, 110-120 miles from home), I drive home from- usually with the app off (If I leave it on, I'll never get home)
> 
> I don't turn on the app in my driveway, because I don't often drive in the area I live. I usually drive 30-40 miles in before turning the app on, otherwise I'll just get stuck driving around my town all day (about 1/2 what I make in the bay). I don't know how anyone can finish their day, leave the app on, and not turn it off until you get in your driveway, too much potential to get more requests.
> 
> I've been keeping detailed records (addresses and all) until a few weeks ago. A few weeks ago I started the method where each day I set my car's trip function to 0, drive all day, and when I get home I take a photo of how many miles I drove.


You need full odometer readings, not the trip odometer.


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

What happens when the IRS standard deduction exceeds your total in revenue across all platforms?


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## Older Chauffeur (Oct 16, 2014)

Mears Troll Number 4 said:


> What happens when the IRS standard deduction exceeds your total in revenue across all platforms?


Your loss goes against any other income reported on your 1040. If you continue to show a loss year after year, the IRS may at some point declare your business a hobby and disallow the loss.

Check with a tax professional.


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

Older Chauffeur said:


> Your loss goes against any other income reported on your 1040. If you continue to show a loss year after year, the IRS may at some point declare your business a hobby and disallow the loss.
> 
> Check with a tax professional.


Would they disallow using ALL deductions if they did that?

I ask because the IRS deduction per mile exceeds the UberX payout per mile in the area i live. Throw in 50% unpaid miles after that and your generating losses at a faster rate than income.

If they won't allow me to deduct at all? Or just not allow me to deduct a loss?... (assuming i did it full time) it would literally be $100+ in deductible miles per day that i'm loosing, which could be 10s of thousands a year in deduction I can't claim.


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## Buddywannaride (Aug 1, 2016)

I use Taxbot app. It automatically does it all and lists start and end addresses etc. if anyone is not tracking mileage your overpaying your taxes by a lot of money. Unfortunately Uber doesn't do this service for us. Any surprise there ? Track those miles but make the tracking app do the work.


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## Older Chauffeur (Oct 16, 2014)

Buddywannaride said:


> I use Taxbot app. It automatically does it all and lists start and end addresses etc. if anyone is not tracking mileage your overpaying your taxes by a lot of money. Unfortunately Uber doesn't do this service for us. Any surprise there ? Track those miles but make the tracking app do the work.


Does it track miles in between paid passenger trips?


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## jester121 (Sep 6, 2016)

Mears Troll Number 4 said:


> If they won't allow me to deduct at all? Or just not allow me to deduct a loss?... (assuming i did it full time) it would literally be $100+ in deductible miles per day that i'm loosing, which could be 10s of thousands a year in deduction I can't claim.


You can deduct up to the amount of income, then carry forward the rest of the deduction to future tax years.

As mentioned above, if you lose money on paper year after year eventually it will be disallowed.


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## Buddywannaride (Aug 1, 2016)

Older Chauffeur said:


> Does it track miles in between paid passenger trips?


Yes it does if you let it. I turn it off between rides. But I put it right back on when I get a ping. I estimate about 30 percent of my earnings will be taxable. The other 70 percent is deducted based on miles driven.


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## Older Chauffeur (Oct 16, 2014)

Buddywannaride said:


> Yes it does if you let it. I turn it off between rides. But I put it right back on when I get a ping. I estimate about 30 percent of my earnings will be taxable. The other 70 percent is deducted based on miles driven.


Why don't you let it track the "dead" miles between rides? Just curious.


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

Older Chauffeur said:


> Why don't you let it track the "dead" miles between rides? Just curious.


I would have to say... so you don't get Uber pings while you have a lyft pax and visa versa.

It's just so much easier to just keep a log of your Odometer readings. I used to keep mine in day planner old school pen and paper style.

Considering this is what the IRS requires anyway, it's a far better option.

date, time, start ODO- stop ODO
For every "session" you work. Even if you are doing this multiple times a day it's so easy to do. Don't need an app to do the mileage.

I got audited when I was Indy and they glanced at my log for all of 8 seconds and they did ask to see the cars' current odometer readings and my log for the week just o make sure I was logging real numbers and not making crap up on the spot.


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## Older Chauffeur (Oct 16, 2014)

Mears Troll Number 4 said:


> I would have to say... so you don't get Uber pings while you have a lyft pax and visa versa.
> 
> It's just so much easier to just keep a log of your Odometer readings. I used to keep mine in day planner old school pen and paper style.
> 
> ...


Yep, Day Planner is what I use, too. But how would this TaxBot program he describes affect Uber/Lyft pings? Sorry, but I'm a bit behind the curve on this stuff.


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