# Profit and Loss - Lyft Driver



## TheSledDogger (Jan 4, 2019)

OK, I'm new at this; 1st year. Started in mid January. I've just calculated my profit and loss based on mileage only (haven't figured in my dedicated cell service, floor matt purchase and several other things yet).

Is it normal for months that your Income shows $1418.26 to actually show a profit of only $531.30 (Taxable) after mileage deductions??

Another Month with $1032.23 income but only $491.09 actual profit (taxable) after mileage deductions?

That would be like 1/3 profit and 2/3 costs? Is that normal or am I doing something wrong? Again, this is based ONLY on mileage deductions. I have other purchases to write off). So, am I doing something wrong or can I make over $1,500 a month and show a taxable profit of only $500 or less?

Thanks


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## kos um uber (Nov 3, 2018)

TheSledDogger said:


> So, am I doing something wrong


yes u do drive smart not hard


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## TheSledDogger (Jan 4, 2019)

kos um uber said:


> yes u do drive smart not hard


 What do you mean?


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## Wattaman (Nov 27, 2017)

You are very much in the ball park. The mileage really adds up as I too was surprised at my numbers, but I do drive the Cape and the miles add up, easy miles, just a lot of them.


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## TheSledDogger (Jan 4, 2019)

Wattaman said:


> You are very much in the ball park. The mileage really adds up as I too was surprised at my numbers, but I do drive the Cape and the miles add up, easy miles, just a lot of them.


Thank you for your reply. I drive North of Boston so I get a lot of to the airport rides and to the mall rides most of which are 6 to 15 miles each one way. Since I don't know Boston too much, when I drop someone off at the airport or at a college in Boston, I don't take another ride until I get back to Lynn or Salem and stage for rides. I'm told return to staging area miles count too but mileage home doesn't unless you have a qualifying in-home office. The miles do add up quick! I have a 2006 scion and when I started doing this it had 50,000 miles on it. In the 3 months I've been driving for Lyft I now have 56,000+ on it. That is like 2,000 miles a month. Prior to driving for Lyft my car averaged about 350 miles a month! So, I'm driving 1,600+ more miles a month than I was just driving local.


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## oldfart (Dec 22, 2017)

I’m not sure how you are calculating this

When you say “after mileage” does that mean you are deducting the irs standard mileage deduction or are you using your actual expenses?

If you are using the standard deduction I would expect your taxable income to be closer to zero 

If you are using actual expenses I’d expect your income to be more

Perhaps if you could give us your methodology we could give you better answers


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## TheSledDogger (Jan 4, 2019)

I am claiming standard mileage deduction. I know mileage to staging, going to get a rider, the ride itself with the rider and return to staging are all countable miles for a write off. I also believe my mileage home at the end of the day is countable ONLY if I have a qualifying in-home office (which I can also write off).

So, you are saying my estimate of 2/3 write off and 1/3 profit is not correct and I should be able to write off more? 
PS: This is just mileage deductions I'm talking about. I know snacks for riders, dedicated cell line, floor mats, seat covers and all that is also deductible as are tolls and parking. But that isn't included in my 1/3 Profit, 2/3 Expenses mentioned above.


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## oldfart (Dec 22, 2017)

TheSledDogger said:


> I am claiming standard mileage deduction. I know mileage to staging, going to get a rider, the ride itself with the rider and return to staging are all countable miles for a write off. I also believe my mileage home at the end of the day is countable ONLY if I have a qualifying in-home office (which I can also write off).
> 
> So, you are saying my estimate of 2/3 write off and 1/3 profit is not correct and I should be able to write off more?
> PS: This is just mileage deductions I'm talking about. I know snacks for riders, dedicated cell line, floor mats, seat covers and all that is also deductible as are tolls and parking. But that isn't included in my 1/3 Profit, 2/3 Expenses mentioned above.


I'm more interested in cash flow. That means a simple money-in minus money-out calculation

I maintain a savings account for major repairs and ultimately to replace the car

At tax time however I use the standard deduction based on total mileage which for me is every mile on the odometer (the car is used for business only)

For me the standard deduction works out to be about 75% of my total income so I suppose you are in the ball park (if I am) 
The key to profitability I believe is to manage your dead miles The fewer dead miles you drive, the more money you will make


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## TheSledDogger (Jan 4, 2019)

oldfart said:


> I'm more interested in cash flow. That means a simple money-in minus money-out calculation
> 
> I maintain a savings account for major repairs and ultimately to replace the car
> 
> ...


Makes sense. Thank you for your detailed reply.


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## B - uberlyftdriver (Jun 6, 2017)

if you are working, count the miles in a log or an app that tracks you.

the apps will send you a report at the end of the year but it will be much lower than actually miles worked, so do it yourself because these apps do not have your interests in mind


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## amazinghl (Oct 31, 2018)

2018 standard deduction is $.545 per mile for business miles driven.


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## Taksomotor (Mar 19, 2019)

I would say yes you are doing everything right, your revenue vs. cost look normal and reasonable to me. That is why you see so many people call this "job" a community service.


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## BigRedDriver (Nov 28, 2018)

Not quite sure I know what you mean by:


> Since I don't know Boston too much, when I drop someone off at the airport or at a college in Boston, I don't take another ride until I get back to Lynn or Salem and stage for rides.


Is the app on while driving back? I might be wrong, and others can tell me if I am, but if you are dead heading back *without the app on*, to avoid taking a ride, I don't think you can deduct those? Again, if others disagree, please post.

Also, if you are heading home at the end of the day, with the app on (I do it with the destination filter on), I do believe those miles count as deductible as you are still looking for rides. Again, if I am wrong I am sure other members will pipe in.

I am not a tax expert by any means.


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## Taksomotor (Mar 19, 2019)

@BigRedDriver you are right


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## FLKeys (Dec 27, 2018)

TheSledDogger said:


> I am claiming standard mileage deduction. I know mileage to staging, going to get a rider, the ride itself with the rider and return to staging are all countable miles for a write off. I also believe my mileage home at the end of the day is countable ONLY if I have a qualifying in-home office (which I can also write off).
> 
> So, you are saying my estimate of 2/3 write off and 1/3 profit is not correct and I should be able to write off more?
> PS: This is just mileage deductions I'm talking about. I know snacks for riders, dedicated cell line, floor mats, seat covers and all that is also deductible as are tolls and parking. But that isn't included in my 1/3 Profit, 2/3 Expenses mentioned above.


Depending on your market (rates paid) and your ability to minimize dead miles your numbers sound reasonable. I have not completed my taxes yet for an official number however my rough estimates show a 29% taxable profit for my 2018 driving. I suspect this number will drop some maybe to 25%. I do not pad my mileage to lower my taxable profits. I keep an accurate mileage log and will file an accurate tax return.


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## dctcmn (Sep 21, 2017)

Profit and loss is different than taxable income. 

My actual costs per mile in 2018 was 17.2 cents per mile, but I still took the 54.5 cents per mile standard deduction (along with other general business deductions-- % of cell phone bill, % of internet, amenities, etc). Also, don't forget that SEP contributions or SOLO 401(k) contributions reduce your taxable income, too.

So if I grossed an average of $1/mile, my actual profit would have been 82.8 cents per mile, but my taxable income was less than 46.5 cents per mile. Once my retirement contributions were factored in, I not only didn't owe anything, but was tax positive for 2018.


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