# you can only claim mileage or expenses!



## lrod1887 (Aug 16, 2015)

I keep hearing people can write off both.

https://ttlc.intuit.com/questions/2722277-what-can-an-uber-driver-deduct

am I missing something?

expenses , ie: gas, car wash, oil change , etc..

if someone here can address this once in for all , please let me know


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## StarzykCPA (Aug 6, 2015)

The "recommended answer" on the page you linked is accurate. The standard mileage rate only nullifies certain car expenses, not all of your expenses. If you take the mileage deduction, you can't also deduct depreciation, lease payments, maintenance, tires, licenses, repairs, gas, oil, insurance, or vehicle registration fees. Other expenses besides those are fine.


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## makinthemagic (Oct 8, 2015)

You can only use one method or the other - either the flat mileage rate or total expenses. It is a decision you will have to make and stick with it. You don't get it both ways.


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## Nuber driver (Oct 7, 2015)

Additional deductions include interest on your car payment, car washes, car equipment specifically purchased to do your work (puke bags, plug in GPS, possibly even back window tint for your Pax), and if you have an uber black or SUV or Lux account than presumably your TCP license fees (but I've been trying to verify this one myself). 

The key is to have receipts available and explanations prepared. Its fine to try and push the envelope a little to ensure you get every deduction you reasonably deserve. The tax code as we know it was written by people who pretty much bribed congressional officials to include things to save them money, when something might apply to you go for it. 

An audit sucks for sure, but not all audits result in paying extra taxes. Also, even if they end up disallowing some small deduction (say they disagree with you on deducting a $100 tint) you aren't going to pay thousands for a small error. The reason people have to pay thousands or tens of thousands back is because they got thousands or tens of thousands back that they should not have. Penalties and fees are relatively low so long as you are not considered abusive with your deductions. I've read up on cases of financial companies that systematically over claim deductions on the presumption that even if they do get caught, pay interest and penalties, they are still ahead because of the return on investment they made on the money until they were finally audited. 

That being said, doing a mileage deduction and then trying to claim all your gas and depreciation would result in thousands of dollars in difference and would be pretty costly. 

Be creative, and have receipts, frankly if you spent it on your business, there is a good chance that it was a legitimate business expense.


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## DMV guy (Oct 8, 2015)

StarzykCPA said:


> The "recommended answer" on the page you linked is accurate. The standard mileage rate only nullifies certain car expenses, not all of your expenses. If you take the mileage deduction, you can't also deduct depreciation, lease payments, maintenance, tires, licenses, repairs, gas, oil, insurance, or vehicle registration fees. Other expenses besides those are fine.


Lol, what else is Left?


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## Jgunner (Oct 18, 2015)

What ever method you use in the first year you put the vehicle in services determines the method to be used in future years.
IRS states if the standared milage rate is used in the first year then future years can be the standard milage rate or the actual expenses. IF the actual Expenses are used in the first year then they MUST be used in all future years.


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## Michael - Cleveland (Jan 1, 2015)

Jgunner said:


> What ever method you use in the first year you put the vehicle in services determines the method to be used in future years.
> IRS states if the standared milage rate is used in the first year then future years can be the standard milage rate or the actual expenses. IF the actual Expenses are used in the first year then they MUST be used in all future years.


True - and if you screwed up, you can always sell the car and put a new one in service and start claiming the std deduction - which is usually to the benefit of high mileage drivers, like Uber/Lyft.


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## UberTaxGeek (Nov 10, 2015)

Unfortunately, under IRS Manuel, taxi drivers cannot use standard mileage method deduction. You can only use actual cost method. Please search "IRM" on IRS website for reference. If you get audited, the IRS will not allow you use the standard mileage method. But when we prepare the tax returns, we are required to put in your business and total mileage in the software.


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## Michael - Cleveland (Jan 1, 2015)

UberTaxGeek said:


> Unfortunately, under IRS Manuel, taxi drivers cannot use standard mileage method deduction. You can only use actual cost method. Please search "IRM" on IRS website for reference. If you get audited, the IRS will not allow you use the standard mileage method. But when we prepare the tax returns, we are required to put in your business and total mileage in the software.


Fortunately, TNC drivers are not taxi drivers - we drive our personal vehicles.


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## UberTaxGeek (Nov 10, 2015)

Michael - Cleveland said:


> Fortunately, TNC drivers are not taxi drivers - they driver their personal vehicles.
> But I suspect that Uber Black (livery) drivers must also itemize expenses.


Sorry, my bad. In 2010, the IRS removed the limitation of using standard mileage deduction for taxi or FHV drivers. So you can those.


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## Michael - Cleveland (Jan 1, 2015)

UberTaxGeek said:


> Sorry, my bad. In 2010, the IRS removed the limitation of using standard mileage deduction for taxi or FHV drivers. So you can those.


hehe... okay - you delete your posts and I'll delete my replies.


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