# Do I need to keep track of insurance, maintenance, gas if taking the Standard per mile Deduction?



## Divad7 (Apr 28, 2018)

Since the .54/mile deduction covers them already. What other things can I deduct that the standard deduction doesn't cover? Can I deduct the cost of a new stereo system and other upgrades in the car?


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

Divad7 said:


> Since the .54/mile deduction covers them already. What other things can I deduct that the standard deduction doesn't cover? Can I deduct the cost of a new stereo system and other upgrades in the car?


you do not need to track other deductions (if you think the per mile is going to be higher)

A new stereo system is no, however if it's to replace a system that was damaged by a customer than yes.

replacements for wear/tear is never deductible, replacing perfectly good is never deductible.

The only thing that would be deductible is customer damage.


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## uber>54 (Oct 6, 2017)

I believe Sirius radio, car washes and extras like gum-mints-water bottles are deductible above the standard mileage deductible. If they aren't, don't tell my guy at H&R Block.


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## SEAL Team 5 (Dec 19, 2015)

Divad7 said:


> What other things can I deduct that the standard deduction doesn't cover?


You can deduct major vehicle repairs, such as drive trains, front ends and computers. You can deduct the extra data needed for your wireless service. You can deduct lodging and meals if rideshare takes you away from your normal area of business and must stay overnight. You can deduct any advertising such as business cards. You can deduct any legal or financial advice costs as long as its sole purpose is for rideshare. You can deduct any cleaning cost over and above normal car washes such as professional cleaning after a pax defecates in your back seat.


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## OrlUberOffDriver (Oct 27, 2014)

How else are you gonna know what your profit is?!
Of course you wanna track ALL your expenses, then at tax time you can make an educated decision as to which way to file your tax liability.
Btw for 2018 Tax year it is 54.5 cents for every mile driven(on trip & dead miles)


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## Divad7 (Apr 28, 2018)

OrlUberOffDriver said:


> How else are you gonna know what your profit is?!
> Of course you wanna track ALL your expenses, then at tax time you can make an educated decision as to which way to file your tax liability.
> Btw for 2018 Tax year it is 54.5 cents for every mile driven(on trip & dead miles)


So, as long as you have the App on, you can deduct those miles driven? If the App is off, and you're just starting your day, and drive 20 miles to your favorite spot, does that count?


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## jester121 (Sep 6, 2016)

Divad7 said:


> If the App is off, and you're just starting your day, and drive 20 miles to your favorite spot,


In that case, reach up and smack yourself in the back of the head because you're dumb.


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## Pax Collector (Feb 18, 2018)

Divad7 said:


> Since the .54/mile deduction covers them already. What other things can I deduct that the standard deduction doesn't cover? Can I deduct the cost of a new stereo system and other upgrades in the car?


Your insurance is deductible, but only the percentage of it that you use for business, so is an interest on your car payment, if you have any. These deductions are on top of your standard mileage deduction.

You can't deduct any upgrades to your car that are not directly related to your business. You can't deduct maintenance costs either as you're already taking advantage of the standard deduction.


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## Divad7 (Apr 28, 2018)

jester121 said:


> In that case, reach up and smack yourself in the back of the head because you're dumb.


My favorite spot is the area where my main job is... I need to stop by there before turning the app on


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## Pax Collector (Feb 18, 2018)

Divad7 said:


> My favorite spot is the area where my main job is... I need to stop by there before turning the app on


The IRS considers these "Commute miles" and can't be deducted in most cases, unless you somehow squeeze them into your total mileage for the day and convince them your car is your home.


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## UberTaxPro (Oct 3, 2014)

uber>54 said:


> I believe Sirius radio, car washes and extras like gum-mints-water bottles are deductible above the standard mileage deductible. If they aren't, don't tell my guy at H&R Block.


Yes, except only the business % use of those items are deductible and only business use % "extra" car washes. Normal car washes are included in the SMR



SEAL Team 5 said:


> You can deduct major vehicle repairs, such as drive trains, front ends and computers. You can deduct the extra data needed for your wireless service. You can deduct lodging and meals if rideshare takes you away from your normal area of business and must stay overnight. You can deduct any advertising such as business cards. You can deduct any legal or financial advice costs as long as its sole purpose is for rideshare. You can deduct any cleaning cost over and above normal car washes such as professional cleaning after a pax defecates in your back seat.


*All Repairs* are included in the SMR which is what I think the OP is talking about here. So major vehicle repairs would not be deductible if you're using the SMR to deduct vehicle expenses.



Pax Collector said:


> Your insurance is deductible, but only the percentage of it that you use for business, so is an interest on your car payment, if you have any. These deductions are on top of your standard mileage deduction.
> 
> You can't deduct any upgrades to your car that are not directly related to your business. You can't deduct maintenance costs either as you're already taking advantage of the standard deduction.


Yes business % of interest is deductible in addition to using SMR however car insurance is 100% included in the SMR and not deductible in addition to SMR deduction.


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## SEAL Team 5 (Dec 19, 2015)

UberTaxPro said:


> *All Repairs* are included in the SMR which is what I think the OP is talking about here. So major vehicle repairs would not be deductible if you're using the SMR to deduct vehicle expenses.


Really? Oh crap!!! Looks like I'll be making some amendments and paying a little extra back taxes. Now I need to go through some back returns. I guess I was told wrong.



SEAL Team 5 said:


> Really? Oh crap!!! Looks like I'll be making some amendments and paying a little extra back taxes. Now I need to go through some back returns. I guess I was told wrong.


Would this come into play?

*IRS Finalizes Rules on Repairs Versus Improvements*
*Learn about IRS rules on deducting repairs to business property.*
By Stephen Fishman, J.D.

On January 1, 2014 sweeping new IRS regulations governing the deductibility of repairs and improvements to business property went into effect. Eight years in the making, the voluminous regulations provide, for the first time ever, highly detailed guidance on how to classify expenses as improvements or repairs that the IRS is bound to follow.

How to classify such expenses is important because improvements to business property must ordinarily be depreciated over many years-as many as 39 years in the case of real property. On the other hand, no matter how much they cost, repairs to business property are currently deductible in a single year. For example, if you spend $1,000 to repair a business vehicle, you can deduct the entire amount in one year. However, if the $1,000 is for an improvement to the vehicle, you'll have to deduct the amount a little at a time over five years.

Is it repairs to business property and not routine maintenance?


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## UberTaxPro (Oct 3, 2014)

SEAL Team 5 said:


> Really? Oh crap!!! Looks like I'll be making some amendments and paying a little extra back taxes. Now I need to go through some back returns. I guess I was told wrong.
> 
> Would this come into play?
> 
> ...


Only if you you were using the actual expense method and did something like convert your 4 door sedan to a stretch limo. The issue is depreciation and the SMR includes depreciation within, about .23 cents of the total mileage allowance is allocated to depreciation.


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## OrlUberOffDriver (Oct 27, 2014)

Divad7 said:


> So, as long as you have the App on, you can deduct those miles driven? If the App is off, and you're just starting your day, and drive 20 miles to your favorite spot, does that count?


App on and log on. Not just app open.


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## ustabefast (May 21, 2018)

Does the aap keep track of all the miles I drive while logged in? Can I just use this information for my yearly milage writeoff?


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

ustabefast said:


> Does the aap keep track of all the miles I drive while logged in? Can I just use this information for my yearly milage writeoff?


One year my mileage was 48% higher than uber's estimate.


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