# Is this correct, IRS Mileage deduction



## SD_Expedition (Dec 10, 2015)

Do these numbers look correct?

.90 cents per miles minus uber 20%, which is .18 cents...minus the* IRS per mile deduction of .57 cents would leave $.15 cents per mile we are making.* Even if it was possible to have a passenger for the whole hour driving 60 miles per hour you would still only make $9 per hour after expenses. In reality most driver on the high side are doing maybe 30 miles per hour in rides so that you be $4.50 per hour was and making after uber fee and expenses...

I think that the math is incorrect here. The deduction would not be taken out of the per mile fare in this way?


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## LAuberX (Jun 3, 2014)

How much does it cost you per mile to own, feed, service and drive your Car? Use that number, the IRS number is just for your taxes.

My Camry costs .28 per mile, and I averaged one dead for every paid mile, so about .56 in cost per paid mile was correct for me.


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## SD_Expedition (Dec 10, 2015)

Right, what I was looking for was to correct another persons post in that regard. So with those numbers above, what is the actual?


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## Fuzzyelvis (Dec 7, 2014)

SD_Expedition said:


> Right, what I was looking for was to correct another persons post in that regard. So with those numbers above, what is the actual?


Oh no you pretty much got it right. Now there's also minute time so if you had a passenger the entire time you get $0.11 a minute or whatever doesn your area - Uber 20% of course I think that comes out to about $4 or $5 in Houston where I am.

Of course if your car cost you more than $0.28 a mile then it's less.

That's why so many of the old drivers have quit or are taking one trip a month in a holding pattern.


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## SD_Expedition (Dec 10, 2015)

Fuzzyelvis said:


> Oh no you pretty much got it right. Now there's also minute time so if you had a passenger the entire time you get $0.11 a minute or whatever doesn your area - Uber 20% of course I think that comes out to about $4 or $5 in Houston where I am.
> 
> Of course if your car cost you more than $0.28 a mile then it's less.
> 
> That's why so many of the old drivers have quit or are taking one trip a month in a holding pattern.


I need the actual corrected number -IRS deduction of 57c a mile. Can someone give me the actual breakdown. It's important.


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## berserk42 (Apr 24, 2015)

Do the math. Your actual is different than others' actuals. I would just use the $0.57/mi deduction for your taxes. Apply that to all miles driven with pax and dead.


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## SD_Expedition (Dec 10, 2015)

berserk42 said:


> Do the math. Your actual is different than others' actuals. I would just use the $0.57/mi deduction for your taxes. Apply that to all miles driven with pax and dead.


I'm looking to correct this, this is a sample for the media.


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## SD_Expedition (Dec 10, 2015)

https://uberpeople.net/threads/news-article-will-run-in-fridays-paper.54888/


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## LAuberX (Jun 3, 2014)

SD_Expedition said:


> Right, what I was looking for was to correct another persons post in that regard. So with those numbers above, what is the actual?


Each person has to calculate the "Actual" cost of owning, feeding, fixing, insuring and driving their own car.

My car cost .28 for every mile I drive it. A number calculated over the past 2 years and 72,000 miles of Uber Driving.


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## SD_Expedition (Dec 10, 2015)

LAuberX said:


> Each person has to calculate the "Actual" cost of owning, feeding, fixing, insuring and driving their own car.
> 
> My car cost .28 for every mile I drive it. A number calculated over the past 2 years and 72,000 miles of Uber Driving.


What type of car?


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## berserk42 (Apr 24, 2015)

Oh. I wouldn't bother adjusting that..it's a decent approximation. It gets worse when you consider SRF, but it also neglects time (which tends to be negligible). The one dead for every paid mile along with actual operating cost at about half the IRS rate (for a Prius anyway) makes sense with current gas prices.

Maybe mention, according to IRS, and assuming 1 dead mile per paid mile, the driver will never record any profit at $1.14/mi or less (well, higher than that due to uber cut, but you get my drift).


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## SD_Expedition (Dec 10, 2015)

berserk42 said:


> Oh. I wouldn't bother adjusting that..it's a decent approximation. It gets worse when you consider SRF, but it also neglects time (which tends to be negligible). The one dead for every paid mile along with actual operating cost at about half the IRS rate (for a Prius anyway) makes sense with current gas prices.
> 
> Maybe mention, according to IRS, and assuming 1 dead mile per paid mile, the driver will never record any profit at $1.14/mi or less (well, higher than that due to uber cut, but you get my drift).


Can you make a sample with Prius mileage? Please it would help a ton!?


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## UberPissed (Aug 13, 2014)

Mileage gets talked about a lot here. There are 2 types of P&L - for "tax purposes" and "real life". Its hard to say what is closer to reality. If you are driving a brand new vehicle, it depreciates quicker than an older vehicle.

Also, if you have an older vehicle, and pay 3k for it, you have already sucked most of the depreciation out. To maximize profit.... actual profit, you want a low cost, high high MPG vehicle. This will allow you to have low "tax purposes" earnings with high "real life" earnings.


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## LindaVMorgan (Jan 28, 2016)

SD_Expedition said:


> I need the actual corrected number -IRS deduction of 57c a mile. Can someone give me the actual breakdown. It's important.


the 2015 mileage deduction for business travel is $.575. (57 1/2 cents per mile.)

But, unless I am confused, I'm not sure you are understand the whole "mileage deduction" thing. You get to deduction $.575 per mile against your tax liability, not away from the money you are earning. It's a good thing!


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## LindaVMorgan (Jan 28, 2016)

UberPissed said:


> Mileage gets talked about a lot here. There are 2 types of P&L - for "tax purposes" and "real life". Its hard to say what is closer to reality. If you are driving a brand new vehicle, it depreciates quicker than an older vehicle.
> 
> Also, if you have an older vehicle, and pay 3k for it, you have already sucked most of the depreciation out. To maximize profit.... actual profit, you want a low cost, high high MPG vehicle. This will allow you to have low "tax purposes" earnings with high "real life" earnings.


If you are claiming mileage, you can't claim depreciation. You can only claim depreciation if you are claiming your actual expenses.


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## UberTaxPro (Oct 3, 2014)

SD_Expedition said:


> I need the actual corrected number -IRS deduction of 57c a mile. Can someone give me the actual breakdown. It's important.


http://www.companymileage.com/howmileageratedetermined.html


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## UberTaxPro (Oct 3, 2014)

LindaVMorgan said:


> the 2015 mileage deduction for business travel is $.575. (57 1/2 cents per mile.)
> 
> But, unless I am confused, I'm not sure you are understand the whole "mileage deduction" thing. You get to deduction $.575 per mile against your tax liability, not away from the money you are earning. It's a good thing!


When you deduct mileage for a business, *you subtract the amount of the deduction from your gross income*, which reduces your taxable income.


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## UberTaxPro (Oct 3, 2014)

LindaVMorgan said:


> If you are claiming mileage, you can't claim depreciation. You can only claim depreciation if you are claiming your actual expenses.


The mileage rate already includes *deemed depreciation*, so the taxpayer must reduce the basis of the vehicle by the amount of depreciation that is accounted for by part of the mileage rate. .22 cents per mile for 2015 I believe.


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