# Taxes on a Rental or Lease



## JimS

It wouldn't happen to be a loophole to be able to claim all miles on a program like Uber Exchange or Lyft Rentals in addition to the weekly all inclusive rental fee, would it? Or Hyrecar...


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## calmman

https://ttlc.intuit.com/questions/2590192-can-i-deduct-mileage-on-a-vehicle-i-don-t-own

in short -no.


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## Older Chauffeur

JimS said:


> It wouldn't happen to be a loophole to be able to claim all miles on a program like Uber Exchange or Lyft Rentals in addition to the weekly all inclusive rental fee, would it? Or Hyrecar...


This would be something to ask a tax professional. The IRS says that if you want to use the standard mileage deduction for business use of a leased vehicle, you have to use it for the entire term of the lease. Whether they would consider the Exchange Lease a qualifying lease might be another matter, as would the Lyft rental.


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## UberTaxPro

JimS said:


> It wouldn't happen to be a loophole to be able to claim all miles on a program like Uber Exchange or Lyft Rentals in addition to the weekly all inclusive rental fee, would it? Or Hyrecar...


Sorry, no double dipping allowed. You can have one or the other but not both.


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## calmman

you can't claim standard mile deductions from rental car as it doesn't belong to you.


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## UberTaxPro

4


calmman said:


> you can't claim standard mile deductions from rental car as it doesn't belong to you.


If you lease a vehicle and use it for business you can claim the standard mileage deduction or actual expenses for the business use but not both. If you elect to use the SMD on a leased vehicle you must use it for the entirety of the lease. The lease must be in your own name or spouse's name if you file jointly.


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## calmman

In author's case when he rents form Lyft (or does Uber-Enterprise deal like I do) he can't claim standard mileage deduction as the car doesn't belong to him and he is NOT leasing it, he's renting it and it will be Hertz/Enterprise who will claim standard deduction


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## UberTaxPro

calmman said:


> In author's case when he rents form Lyft (or does Uber-Enterprise deal like I do) he can't claim standard mileage deduction as the car doesn't belong to him and he is NOT leasing it, he's renting it and it will be Hertz/Enterprise who will claim standard deduction


Isn't there a formal agreement between Lyft/Uber and the author? If there is a formal agreement it would be a lease. How long do you 'rent' the car from Uber-Enterprise? By the day, week, month or year? Do you have a formal agreement? Are you deducting your 'rent' payments as a business expense? Do you have a copy of the agreement you could share?
Also, Hertz/Enterprise is not eligible to claim the SMD.


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## calmman

No, agreement is between Enterprise and me, minimum weekly but can last as long as I want provided I come to check in once a month. Rent is billed directly to Uber and deducted from your earnings so it may be "pre-tax" already and can't be deducted any further.


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## UberTaxPro

calmman said:


> No, agreement is between Enterprise and me, minimum weekly but can last as long as I want provided I come to check in once a month. Rent is billed directly to Uber and deducted from your earnings so it may be "pre-tax" already and can't be deducted any further.


Do you have a formal agreement with Uber about the lease/rent? I don't think it would be 'pre-tax'......Uber commissions are deducted before you see the money in the same manner and the commission's are deductible.


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## calmman

No, there are no agreements between me and Uber, but Enterprise's rate is labeled Uber 23 Low Mileage. It is nice to know that uber comissions are deductible. Does it mean Fuel card charges are also tax deductible, they are taken "before I see money" too.


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## calmman

Actually lets do one better, say this is hypothetical be very close numbers for a week, and say that's all I worked a year:
Fares: $1500
Uber cut: -$375
Rent: -$242.36
Rent Bonus: $215
Promo bonus: $350
Fuel: -$150
Miles: 1600 miles

Take out money: 1500-375-242.36-150+215+350=$1297.64

what would I claim as tax deductible and how much tax would I be oweing?


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## UberTaxPro

calmman said:


> Actually lets do one better, say this is hypothetical be very close numbers for a week, and say that's all I worked a year:
> Fares: $1500
> Uber cut: -$375
> Rent: -$242.36
> Rent Bonus: $215
> Promo bonus: $350
> Fuel: -$150
> Miles: 1600 miles
> 
> Take out money: 1500-375-242.36-150+215+350=$1297.64
> 
> what would I claim as tax deductible and how much tax would I be oweing?


Here's your taxable incomes using SMD and actual expense method using only the #'s provided. What you owe would depend on lots of other factors. Of course you'd have to confirm that you have a legitimate lease agreement to use the SMD. Using the SMD lowers your income by $472.

Using the actual expense method:
Income - $1500 + $215 + $350 = $2065
Expenses $375 + $242.36 + $150= $767.36
Taxable income = $2065 - $767.36 = *$1298 *

Using SMD:
Income - $1500 + $215 + $350 = $2065
Expenses - $375+ $864 (1600 x .54) = $1239
Taxable income = $2065 - $1239 =* $826*


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## UberTaxPro

calmman said:


> No, there are no agreements between me and Uber, but Enterprise's rate is labeled Uber 23 Low Mileage. It is nice to know that uber comissions are deductible. Does it mean Fuel card charges are also tax deductible, they are taken "before I see money" too.


Fuel is deductible only if your using the actual expense method.


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## calmman

Asked a couple of Enterprise/Uber people today and all are very firm on that you can't use SMD


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## UberTaxPro

calmman said:


> Asked a couple of Enterprise/Uber people today and all are very firm on that you can't use SMD


I talked to my carpenter today and he told me my teeth are OK so I don't need to go to the dentist. I feel so much better!


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## UberTaxPro

Uber refers to their program as 'leasing'. 'Exchange Leasing' they call it here.....https://newsroom.uber.com/a-flexible-vehicle-leasing-pilot-in-california-georgia-maryland/


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## calmman

Oh, you're a smartass moron, sorry, I mistook you for someone respectful. /bye


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## hongcarzy

also be such


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## tronxo

well for the record, the leasing program and the rental program are 2 different things...


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## Mars Troll Number 4

Most cab drivers i know who lease out a car by the week..

On paper it's virtually the same deal your doing with any of the above services, except it's taxi. Most drivers i know have another car in their household and they can claim that the taxi is 100% business use, because they work from home. Because of this.... they can deduct 100% of the costs of renting the car. So if you have a $600 POS clunker rusting in your lawn, you can write off the entire cost of leasing a vehicle through these services.

I rent out a car in 12 hour blocks these days, I can deduct the entirety of what i pay them because i only use it for business use.

The reality is that if i did take it out for a week... I would only use it for business use... on paper.. which is all that matters to the IRS. (if i did use it for personal use i'd never admit to it.)

Umm as far as using the SMD instead of actual expenses, taxis havn't ever been able to use the SMD unless you own the taxi outright. The vast majority of the time, it works out in the taxi drivers favor to use actual costs.

On paper there is no difference between being an idependent contractor taxi driver and being an uber driver.


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