# Deducting Actual expense or Per mile (specific example)



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

S0 with these numbers (will be a little more by 12/31)... and a great big giant question...


Per mile
46,984 total business miles driven

882 miles in Uber in my personal vehicle 
46,102 miles driven in the taxi (a vehicle I do not own operate or use for any personal use)

$24,895.08 in standard mileage




Actual expenses
$14328 in taxi lease
<$200 in uber fees
$4,610 in gasoline (includes the uber gas)
$49 (10% of Just under $500 of maintenance on my personal car, oil changes, brakes, ect)

$19187- I have receipts for this much

My actual expenses in a daily leased taxi are coming up less than the per mile rate...

Which way(s) can i legally deduct with a leased vehicle? I can't seem to find the relevant information applicable to short term leases (12 hours in length), when i've done this before i was burning twice as much gas and paying $30 more a day for the car.

I've just never had my taxi vehicle expenses come up short of the per mile before. (in 2013 i had $42,500ish, of which i did actual expenses for 56,250 miles driven)


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## UberTaxPro (Oct 3, 2014)

Mears Troll Number 4 said:


> S0 with these numbers (will be a little more by 12/31)... and a great big giant question...
> 
> Per mile
> 46,984 total business miles driven
> ...


Do you lease the exact same vehicle every day? Have you taken actual expenses for the taxi you're currently leasing in 2015 or earlier?


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## UberTaxPro (Oct 3, 2014)

Mears Troll Number 4 said:


> S0 with these numbers (will be a little more by 12/31)... and a great big giant question...
> 
> Per mile
> 46,984 total business miles driven
> ...


The problem I see is that the taxi company is most likely deducting actual expenses on this vehicle(s). If you list this vehicle(s) on your return it's going to appear as a vehicle taking both the mileage deduction and actual expenses to the IRS's computers. I know they're good at finding people claiming the same dependants, so I would assume that a vehicle being deducted by two different entities using different methods would set off a red flag or two. In the past when you took actual expenses for the taxi did you list the actual vehicle on your tax form with a VIN # etc...?


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

UberTaxPro said:


> The problem I see is that the taxi company is most likely deducting actual expenses on this vehicle(s). If you list this vehicle(s) on your return it's going to appear as a vehicle taking both the mileage deduction and actual expenses to the IRS's computers. I know they're good at finding people claiming the same dependants, so I would assume that a vehicle being deducted by two different entities using different methods would set off a red flag or two. In the past when you took actual expenses for the taxi did you list the actual vehicle on your tax form with a VIN # etc...?


Umm... the company has been around 80 something years so they have all the kinks worked out with the IRS.

The company's business model isn't really a cab company, they are more like Breeze, in that they make their money by leasing cars out to us. They just happen to be taxis. They also charge 5% on credit card procesing.

So they deduct all the maintenance and the cost of the vehicles as expenses, while the money we pay them is their revenue.

So when it comes to taxes on paper It's more like i'm taking out a breeze car or an UberExchange vehicle than i'm an employee. On paper i'm making $200-350 in revenue, with 100-250 in taxable income per day, with my expenses being deductible. In the past taking mileage never made any sense but last year.. my actual expenses are coming in under IRS standard per mile. (2013 My daily mileage came to $114-142 in standard mileage or ($155-165 in actual expenses)

in 2014 an 2015 i was primarily on Uber with per mile, But after the january 16 rate cuts i went back to primarily in a taxi.

Now the standard mile would come to 108-135 with the reality being $86-90 in actual expenses. Some of this is gas being so cheap, some of the differnce is a far more fuel effecient car, and part of it is leasing a cheaper car.

(in 2013 I was in a E-series van with a wheelchair lift, now i'm in a Toyota Camry hybrid)


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