# Am I really losing money after tax?



## greenbook (Jan 14, 2015)

In Toronto, rates are 80 cents per kilometre.

According to the CRA, which is Canada's IRS, says:
The automobile allowance rates for 2015 are:


55¢ per kilometre for the first 5,000 kilometres driven

49¢ per kilometre driven after that.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/tmbl/llwnc/rts-eng.html
After uber's cut, my paid distance is 64 cents.

It costs me 12 cents per km just for gas.

Does this mean I technically lose money for working for uber?

What do you think?


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## scrurbscrud (Sep 11, 2014)

greenbook said:


> In Toronto, rates are 80 cents per kilometre.
> 
> According to the CRA, which is Canada's IRS, says:
> The automobile allowance rates for 2015 are:
> ...


We've ran the math drill with one of yer Toronto Uber buddies.

At 80 cents a km after Ubers cut that's a net 64 cents to you per paid mile. You'll run 1 dead mile to one paid mile when all is said and done meaning your pay gets cut in half to 32 cents per km.

You tell me how that pencils out once you subtract the std mile cost deduction.


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## Uber SUCKS for drivers! (Jan 1, 2015)

scrurbscrud said:


> We've ran the math drill with one of yer Toronto Uber buddies.
> 
> At 80 cents a km after Ubers cut that's a net 64 cents to you per paid mile. You'll run 1 dead mile to one paid mile when all is said and done meaning your pay gets cut in half to 32 cents per km.
> 
> You tell me how that pencils out once you subtract the std mile cost deduction.


Right, the correct answer is ... You're not losing money "after tax", you're losing money "before tax", so there is no tax, you have to actually turn a profit, to have taxes even come into play.


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