# What is acceptable by the IRS for mileage documentation?



## Nick781 (Dec 7, 2014)

Any guides?


----------



## StarzykCPA (Aug 6, 2015)

Taken from my website... you need to track the following information:

Date
Destination/Area
Business purpose
Miles for the trip (ideally with starting and ending odometer readings)
Description and amount for any relevant expenses for the trip


----------



## Nick781 (Dec 7, 2014)

Uber stores all that info already except the odometer so I will be okay just doing that correct?


----------



## StarzykCPA (Aug 6, 2015)

Nick781 said:


> Uber stores all that info already except the odometer so I will be okay just doing that correct?


Ideally you would want everything together, in one spot. So I would recommend keeping a log with all the information mentioned.

Plus... Uber does not record all of your miles, only your on-fare miles. For example, they don't have the miles you drove between pax pickups. Keep track of it all for the most tax deductions.


----------



## Nick781 (Dec 7, 2014)

So what if I printed out all the trips. It shows it on a map on uber partners website. Than I stored that in a binder. Is that okay?

Also do I need to document the dead miles or going to pickup people? for example like making notes about the miles or only when i turn app on and off.


----------



## Nick781 (Dec 7, 2014)

One more thing for the miles I missed before that are logged on Uber can I just add them all up and print out the trips ? this was before I started logging the odometer readings.


----------



## UberDriverTaxExpert (Nov 11, 2015)

Listen to StarzykCPA......Create a mileage log with a notebook listing the details above. If you are audited an experienced auditor will eat you alive and you will owe and or have to pay a professional to bail you out.

Why in the world would you want to prepare your own taxes? Why risk an audit? Why are you not focusing on growing your business? Taking a loss (while legal) on a schedule C will increase your chance of an audit dramatically. You better have all your i's dotted and t's crossed. You have so many great tax options like possibly depreciating your vehicle OR setting up your own retirement plan OR getting advice that will help you plan for the future. Is it really a good idea to reduce all your earnings down to nothing just to get a refund OR not pay taxes? If you have the legit deductions then OK but one day you will apply for social security and receive $200 a month instead of $3000 a month. Work hard but smart. Hire a professional that knows your industry and can guide you into the future.


----------



## Nick781 (Dec 7, 2014)

What are you talking about....


----------



## Joe Falcone (Oct 5, 2015)

Nick,
he's talking about self employment taxes you must pay as an "independant contractor."
And the fact that your social security check (down the road some year when you retire) will be based
on the amount you pay. The more you pay over the years, the bigger your social security check.
Anyway, you may want to read up on the topic since self employment taxes are required quarterly.


----------



## UberTaxPro (Oct 3, 2014)

Nick781 said:


> Any guides?


Check out IRS publication 463 https://www.irs.gov/pub/irs-pdf/p463.pdf


----------



## UberTaxPro (Oct 3, 2014)

UberDriverTaxExpert said:


> Listen to StarzykCPA......Create a mileage log with a notebook listing the details above. If you are audited an experienced auditor will eat you alive and you will owe and or have to pay a professional to bail you out.
> 
> Why in the world would you want to prepare your own taxes? Why risk an audit? Why are you not focusing on growing your business? Taking a loss (while legal) on a schedule C will increase your chance of an audit dramatically. You better have all your i's dotted and t's crossed. You have so many great tax options like possibly depreciating your vehicle OR setting up your own retirement plan OR getting advice that will help you plan for the future. Is it really a good idea to reduce all your earnings down to nothing just to get a refund OR not pay taxes? If you have the legit deductions then OK but one day you will apply for social security and receive $200 a month instead of $3000 a month. Work hard but smart. Hire a professional that knows your industry and can guide you into the future.


Preparing your own taxes is a great way to save money for your business and help it grow! If someone wants to take the time to do their own taxes I think it's great! The more you learn about your business the better. That's what this thread is for! Encourage and help people that want to learn.


----------



## UberTaxPro (Oct 3, 2014)

Nick781 said:


> Uber stores all that info already except the odometer so I will be okay just doing that correct?


This is a quote from Publication 463:
"Proving business purpose. You must generally provide a written statement of the business purpose of an expense. However, the degree of proof varies according to the circumstances in each case. If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation"
Personally I keep a daily mileage log on a phone app and would use the uber records to support if needed like you're suggesting. Keep your own copy of uber records because you never know what could happen to Uber. They could deny you access or go out of business....you never know.  By far the best way to prove to the IRS how much you drove for business is to keep contemporaneous records. "Contemporaneous" means your records are created each day you drive for business, or soon thereafter.


----------



## UberTaxPro (Oct 3, 2014)

Nick781 said:


> What are you talking about....


Don't let people on here scare you...you can do this!


----------



## Nick781 (Dec 7, 2014)

UberTaxPro said:


> This is a quote from Publication 463:
> "Proving business purpose. You must generally provide a written statement of the business purpose of an expense. However, the degree of proof varies according to the circumstances in each case. If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation"
> Personally I keep a daily mileage log on a phone app and would use the uber records to support if needed like you're suggesting. Keep your own copy of uber records because you never know what could happen to Uber. They could deny you access or go out of business....you never know. By far the best way to prove to the IRS how much you drove for business is to keep contemporaneous records. "Contemporaneous" means your records are created each day you drive for business, or soon thereafter.


That doesn't say anything about address location etc I track my daily mileage when the app is on/off. So I should print out the trips from Uber for record ?


----------



## Altima ATL (Jul 13, 2015)

Nick781 said:


> That doesn't say anything about address location etc I track my daily mileage when the app is on/off. So I should print out the trips from Uber for record ?


You will need the trip record for the SRF and Uber cut (and other immediate deductions - e.g. tolls) to deduct from the 1099 prior to the mileage deduction for the miles driven to get this amount. (Download the CSV format of your earning statement each week).

So you will need to keep a record of your miles from app on to app off (for each day).

A paper log should normally suffice - I just note down each day when I log on and when I log off with the mileage ( on a notepad that I keep in the glove box).


----------



## UberTaxPro (Oct 3, 2014)

Nick781 said:


> That doesn't say anything about address location etc I track my daily mileage when the app is on/off. So I should print out the trips from Uber for record ?


For me the surrounding circumstances (my 1099 income, emails from Uber showing hours on etc.. etc...) make clear the business purpose of mileage. However everything is open to interpretation so having the Uber records just makes your argument stronger in the event you need to argue with a taxing authority.


----------



## ubermeister (Nov 17, 2015)

Nick781 said:


> What are you talking about....


I'm working on a startup that helps Uber drivers manage their finances/taxes on the cheap. Message me if you'd like more deets!


----------

