# Flat tire as business expense?



## uberRog (Jul 1, 2017)

Damaged a tire somehow while Ubering. I actually had a rider in the car when I noticed it losing air and had to drop her off early to deal with it. (She was very nice and understanding about it all) Got to a tire shop a mile away and the puncture was close enough to the sidewall that it couldn't be patched, so had to spring for a new tire. Just wondering: can I write this off on my taxes as a business expense? Thanks in advance for any advice.


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

I average about one of these a year, there will be more than enough money left over in your .535c per mile deduction to cover 5 new tires a year. At 40,000 per tire change that's about all the longer they will last.


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## Older Chauffeur (Oct 16, 2014)

I agree with Mears Troll Number 4 . The IRS mileage deduction is meant to cover all costs of operating your vehicle for business purposes. OTOH, if you elected to use the actual cost method, you could use the percentage of business mileage accrued during the year to figure the portion of cost of the new tire to deduct. Our resident tax guru, UberTaxPro, suggests that most Uber drivers are better off using the Standard Mileage Rate.

Disclosure: I'm not a tax pro.


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

Older Chauffeur said:


> I agree with Mears Troll Number 4 . The IRS mileage deduction is meant to cover all costs of operating your vehicle for business purposes. OTOH, if you elected to use the actual cost method, you could use the percentage of business mileage accrued during the year to figure the portion of cost of the new tire to deduct. Our resident tax guru, UberTaxPro, suggests that most Uber drivers are better off using the Standard Mileage Rate.
> 
> Disclosure: I'm not a tax pro.


If i was driving something nice like a Cadillac or a Lincoln. Lexus or something, actual expenses might turn out higher, but this would be in a $50,000+ vehicle.

IRS standard mileage should cover anything in a standard X-Xl or Lyft/Lyft+ vehicle. Possibly some of the lower end Select cars as well.

It's when you get into the upper end Select cars and Uber Black cars that you would benefit from actual expenses.


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## sd1303 (Nov 11, 2015)

If the tire was damaged due to a sudden, unexpected, or unusual identifiable event (like hitting a pothole)... it might be a casualty loss. Keep your receipts and ask your tax guy (or do the research).

Disclaimer: not a tax guy


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## UberTaxPro (Oct 3, 2014)

sd1303 said:


> If the tire was damaged due to a sudden, unexpected, or unusual identifiable event (like hitting a pothole)... it might be a casualty loss. Keep your receipts and ask your tax guy (or do the research).
> 
> Disclaimer: not a tax guy


HAHAHA A pothole is not unusual or unexpected where I live! Also, you can't claim a casualty loss if you are reimbursed by insurance and you must itemize your deductions on Schedule A to claim a casualty or theft loss deduction.


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## sd1303 (Nov 11, 2015)

UberTaxPro said:


> HAHAHA A pothole is not unusual or unexpected where I live! Also, you can't claim a casualty loss if you are reimbursed by insurance and you must itemize your deductions on Schedule A to claim a casualty or theft loss deduction.


OP didn't say it was reimbursed by insurance.

Yes, you'd need to itemize in order to claim it (some of us itemize).


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## PrestonT (Feb 15, 2017)

Older Chauffeur said:


> I agree with Mears Troll Number 4 . The IRS mileage deduction is meant to cover all costs of operating your vehicle for business purposes. OTOH, if you elected to use the actual cost method, you could use the percentage of business mileage accrued during the year to figure the portion of cost of the new tire to deduct. Our resident tax guru, UberTaxPro, suggests that most Uber drivers are better off using the Standard Mileage Rate.
> 
> Disclosure: I'm not a tax pro.


Once you opt to itemize your vehicle costs, you have to stay with that deduction method. You can't flip back and forth to whichever gives you the best write-off. For this reason, even in a particularly expensive year, you are likely better off taking the standard.


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## UberTaxPro (Oct 3, 2014)

PrestonT said:


> Once you opt to itemize your vehicle costs, you have to stay with that deduction method. You can't flip back and forth to whichever gives you the best write-off. For this reason, even in a particularly expensive year, you are likely better off taking the standard.


Right on! I agree.



sd1303 said:


> OP didn't say it was reimbursed by insurance.
> 
> Yes, you'd need to itemize in order to claim it (some of us itemize).


OP also didn't state whether he/she itemizes or not.
Also, business casualty and personal casualty losses are handled differently for tax purposes. If the vehicle was used for both personal and business purposes any casualty loss would have to be broken down by % of use.


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## sd1303 (Nov 11, 2015)

UberTaxPro said:


> Right on! I agree.
> 
> OP also didn't state whether he/she itemizes or not.
> Also, business casualty and personal casualty losses are handled differently for tax purposes. If the vehicle was used for both personal and business purposes any casualty loss would have to be broken down by % of use.


Agree. So, in some circumstances, a tire damaged by a sudden event could be at least partially deductible... yes?


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## UberTaxPro (Oct 3, 2014)

sd1303 said:


> Agree. So, in some circumstances, a tire damaged by a sudden event could be at least partially deductible... yes?


Yes, by a *sudden event* but not from a normal everyday pothole. The Tax Court has denied casualty loss claims from potholes consistently. If the pothole was caused by a sudden unexpected earthquake or sinkhole I would agree 100%.



sd1303 said:


> Agree. So, in some circumstances, a tire damaged by a sudden event could be at least partially deductible... yes?


The following can be found here: http://lawexplores.com/nonbusiness-casualty-and-theft-losses/

"The courts have also disallowed deductions for casualty losses in the following cases:

*Automobiles*

Damage to a fuel pump and muffler caused by high stones in a road (the taxpayer was unable to prove that it was more than wear and tear)
Damage caused by a tire blowout due to overloading
Damage caused by exposure to salt water
The forced sale of an automobile due to divorce
*Damage caused by potholes in the road*
Payment in settlement of a wrongful death claim stemming from an automobile accident"


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## Older Chauffeur (Oct 16, 2014)

PrestonT said:


> Once you opt to itemize your vehicle costs, you have to stay with that deduction method. You can't flip back and forth to whichever gives you the best write-off. For this reason, even in a particularly expensive year, you are likely better off taking the standard.


Close, but not 100% accurate. If you choose to use actual expenses in the FIRST year a car you own is available for business use, then yes, you have to continue to use that method. However, if you choose the standard mileage rate for the first year for a car you own, then you can switch between those methods.
If you lease a car, you have to stick with the SRM for the entire lease if you choose it for the first year.
Source: IRS Pub. 463


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## Amsoil Uber Connect (Jan 14, 2015)

Road Hazard Ins when you buy tires at America's Tire or another place is your best friend. In fact my RR light came on today so that the first thing I have to do in the morning. ugh....


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

UberTaxPro said:


> Yes, by a *sudden event* but not from a normal everyday pothole. The Tax Court has denied casualty loss claims from potholes consistently. If the pothole was caused by a sudden unexpected earthquake or sinkhole I would agree 100%.
> 
> The following can be found here: http://lawexplores.com/nonbusiness-casualty-and-theft-losses/
> 
> ...


The way i was explained it, a long time ago, by an attorney who helped me get my taxi documents in order...

Basically...

The only time you can deduct a tire is when...

1. When your using actual expenses (durp)

2. A tire is one of a list of things that happens in an accident, IE you blow a tire and wreck, or wreck and blow a tire,

3. Acts of Vandalism

4. The theft of one or more tires/wheels


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