# Rideshare Insurance deduction?



## FLKeys (Dec 27, 2018)

Plan on using the standard mileage deduction which generally includes vehicle insurance costs.

*What about the additional rideshare endorsement I have to cover the gaps between personal auto insurance and Uber/Lyft insurance?*

I am getting a mixed response from people on this. Some say it is part of your auto insurance and included in standard mileage deduction. Others say the endorsement portion can be deducted separately because it is not needed if you are not driving for a rideshare company.

Talked to a tax accountant and she said it is a gray area and as far as she knows no determination has been made on it by the IRS because it is fairly new. She suggested listing it as other insurance and not auto insurance and taking the deduction. One could argue it is a separate expense unique to rideshare even though it is part of your regular auto insurance.

Anyone have rideshare endorsement on their policy and taking it as a separate deduction?


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## islanddriver (Apr 6, 2018)

If we think the way you accountant is talking then no of use can claim our personal insurance. The milage rate includes all insirance of your accountant doesn't know that it's time for a real accountant


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## UberTaxPro (Oct 3, 2014)

FLKeys said:


> Plan on using the standard mileage deduction which generally includes vehicle insurance costs.
> 
> *What about the additional rideshare endorsement I have to cover the gaps between personal auto insurance and Uber/Lyft insurance?*
> 
> ...


A pig is a pig, an apple is an apple and auto insurance is auto insurance, included in the SMR. More black and white than gray area to me!


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

The standard mileage rate is enough to cover actual miles, gasoline and commercial taxi insurance with a "typical" uberX/XL vehicle.

Using actual expenses result in a loss by comparison unless you have an extremely high end uberBlack/UberSUV vehicle. (or whatever the heck the Gryft equivalent services are).


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## SubaruLegacy (Jan 17, 2018)

I'm curious about this too. It does seem like a grey area. If you had business liability insurance it would be deductible separately. That being said my rideshare rider only comes out to like $7 a month so it's not really going to affect me much. In reality it's probably like $50-100 a month, because if I didn't need rideshare rider, I could've gone with a cheaper company for the base personal insurance. 
Also what about my towing service I pay for as part of my insurance? if i purchases AAA towing separately it's deductible (although I imagine you probably need to break it down by business-personal mileage percentage), so why shouldn't the same service provided by state farm be deductible? (again though its like $12 a year so not exactly a big deal)

There are other expenses I'm unsure about as well. Like for instance car washes are included in SMR, but what about when someone pukes and I have to have seats shampooed, obviously that's not an expense I would've had in my personal life. 

Also what about all my cleaning supplies? I'm for sure planning to deduct those.


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## FLKeys (Dec 27, 2018)

I have asked 5 different tax specialists this same question on timeshare insurance. Two have said No and three said they were confident they could argue for it under audit. I'm still undecided. One of the three that said they would take it also said worse case you owe a little taxes and was confidentvfrom their experience there would be no penalties is disallowed.


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## SubaruLegacy (Jan 17, 2018)

FLKeys said:


> I have asked 5 different tax specialists this same question on timeshare insurance. Two have said No and three said they were confident they could argue for it under audit. I'm still undecided. One of the three that said they would take it also said worse case you owe a little taxes and was confidentvfrom their experience there would be no penalties is disallowed.


Yea I mean when it comes down to it, it's risk-reward. I can't imagine the risk could be too high, I mean in general the IRS just doesn't want you to lie, or commit fraud. Making minor mistakes generally isn't going to get you a massive fine. In my experience, with a few small things on taxes they've usually just charged what I should've paid + interest which is usually insignificant.

Again though how much is your rideshare rider? at $7 a month I'm talking about an $84 deduction so at whatever your tax rate is, say 12-28% you are talking about maybe $10-25 in taxes. now if you have full commercial insurance that's a whole different ball game. and I do know when i was looking for quotes some of the companies had like $100 a month riders, so obviously that's a much more substantial difference.


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## FLKeys (Dec 27, 2018)

Mine is $130 each 6 months or $260 per year. That comes out to approximately $80 less in taxes for me.


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## glenga75 (Dec 22, 2017)

FLKeys said:


> Plan on using the standard mileage deduction which generally includes vehicle insurance costs.
> 
> *What about the additional rideshare endorsement I have to cover the gaps between personal auto insurance and Uber/Lyft insurance?*
> 
> ...


Not sure about your accounting person but if you ride in nyc it means you are on a tlc car. Tlc agents will stop you at any time they want to check on you. Can you tell them that you won't stop because you are having a trip for pleasure. Our license lates are tlc full time and our insurance is commercial so I don't see the point of mentioning any thing partially in here.


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## SubaruLegacy (Jan 17, 2018)

glenga75 said:


> Not sure about your accounting person but if you ride in nyc it means you are on a tlc car. Tlc agents will stop you at any time they want to check on you. Can you tell them that you won't stop because you are having a trip for pleasure. Our license lates are tlc full time and our insurance is commercial so I don't see the point of mentioning any thing partially in here.


NYC is completely different than most of the country. In most of the country like Florida rideshare has basically no regulations. Most drivers aren't on commercial insurance, they are either on personal insurance, if they are dumb, and personal insurance with a rideshare policy rider, if they aren't dumb.


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