# 0.57 mile deduction on leased car?



## Nik (Mar 9, 2015)

Can you deduct that on leased car? 

Also what is the best way to track mileage? Make screenshots? Have some online reporting service like onStar?


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## Nik (Mar 9, 2015)

If not then can you deduct lease payments and 0.25 cents per mile over dealership mileage limit?


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## DrJeecheroo (Feb 12, 2015)

Are you asking anybody in particular? Desertdriver can probably answer all that for you or the happytypist.


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## Nik (Mar 9, 2015)

Its my first post here, 

I dont know who is the king of kings in this field yet


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## Disgusted Driver (Jan 9, 2015)

It does not matter whether you lease or buy the car, you can either deduct the 57 cents OR your actual costs but not both. The problem will come up when you are doing actual cost and mixed use (some personal, some business) because you have to prorate between the two (i.e. if you uber 60% the miles and personal 40% the miles, you can deduct 60% of your actual expenses). Usually a lot easier to take the miles. 

As far as tracking, paper records are fine. I have a little trick I use. Whenever I get in my car, I turn the driver app on. I only live 3 miles from work so I usually get to my job without getting a call. By doing this, I deduct all my miles except for when I go out of town, which I keep track of on a piece of paper in the car. So I was able to deduct away most of my income doing this and it's perfectly legal.


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## Nik (Mar 9, 2015)

I am now in class where CPA accountant told me (but he was not 100% sure) that you cannot register 0.57 dollar cost on leased vehicle because it is not yours. You can only do it for vehicle you own. But you can register lease payments down payment and when dealer charges overage


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## Disgusted Driver (Jan 9, 2015)

Nik said:


> I am now in class where CPA accountant told me (but he was not 100% sure) that you cannot register 0.57 dollar cost on leased vehicle because it is not yours. You can only do it for vehicle you own. But you can register lease payments down payment and when dealer charges overage


Well, there's always the source, your CPA is incorrect, see beginning of 4th paragraph, just before bulletted list:
http://www.irs.gov/taxtopics/tc510.html


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## Nik (Mar 9, 2015)

Disgusted Driver said:


> Well, there's always the source, your CPA is incorrect, see beginning of 4th paragraph, just before bulletted list:
> http://www.irs.gov/taxtopics/tc510.html


Thanks for clarification


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## Desert Driver (Nov 9, 2014)

Nik said:


> Can you deduct that on leased car?
> 
> Also what is the best way to track mileage? Make screenshots? Have some online reporting service like onStar?


Just keep a daily log in your car, then record your beginning and ending mileage. When driving U/L, it's not only miles when you have pax in car. Driving to the pax is deductible. Carrying the pax is deductible. Going to your hot spot is deductible. Drving to the car wash is deductible. Driving to the gas station is deductible. My car is an '07. I paid $18K for it new. But in 160K miles I have expensed $80K over the past 8 years. Not bad for a car that didn't run $20K.

And don't worry about getting creative with your log. If your taxable income is under $160K, your chance of being audited by the IRS is about one in 80,000.


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## KGB7 (Apr 23, 2015)

Ubering full time on lease car is the worst idea ever. Why? Because millage adds up real fast. In one week, every week, i average 1k miles. So if i leased the car for 3 years, i would have ran out of allocated miles under one year, even if i paid extra $$ for additional miles for the period of the lease.


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## Disgusted Driver (Jan 9, 2015)

Desert Driver said:


> Just keep a daily log in your car, then record your beginning and ending mileage. When driving U/L, it's not only miles when you have pax in car. Driving to the pax is deductible. Carrying the pax is deductible. Going to your hot spot is deductible. Drving to the car wash is deductible. Driving to the gas station is deductible. My car is an '07. I paid $18K for it new. But in 160K miles I have expensed $80K over the past 8 years. Not bad for a car that didn't run $20K.


And that folks, is the way to do it! You shouldn't be paying much if any tax on your Uber earnings.


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## ChortlingCrison (Mar 30, 2016)

Desert Driver said:


> Just keep a daily log in your car, then record your beginning and ending mileage. When driving U/L, it's not only miles when you have pax in car. Driving to the pax is deductible. Carrying the pax is deductible. Going to your hot spot is deductible. Drving to the car wash is deductible. Driving to the gas station is deductible. My car is an '07. I paid $18K for it new. But in 160K miles I have expensed $80K over the past 8 years. Not bad for a car that didn't run $20K.
> 
> And don't worry about getting creative with your log. If your taxable income is under $160K, your chance of being audited by the IRS is about one in 80,000.


Very well put!


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## Coachman (Sep 22, 2015)

Desert Driver said:


> And don't worry about getting creative with your log. If your taxable income is under $160K, your chance of being audited by the IRS is about one in 80,000.


They don't audit people who are only earning a few hundred dollars a month.


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## Buddywannarideagain (Jun 29, 2017)

Just deduct it. The IRS won't know jack shit. Plus, we're talking PEANUTS compared to to millions that corporate executives take in


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## Delivery Mr.Guy (Aug 9, 2016)

Nik said:


> Can you deduct that on leased car?
> 
> Also what is the best way to track mileage? Make screenshots? Have some online reporting service like onStar?


I have lease a car and it is worst decision I ever made. because they said that I have to pay for part repair like rotors,brake pad. so I paid the repair for them not for my own.


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