# Dead miles clarification



## Uberest (Jul 29, 2015)

Quick question for the tax folks....... If I end up with a pax destination that is remote from home or work or where I need to be..... I have to turn the app off to avoid getting pings. Can I still deduct the miles I need to drive to go where need to go....? To clarify, I am at the pax destination and now want to go to home or work or some event. I turn the app off. Can instill deduct the miles?


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## Chicago-uber (Jun 18, 2014)

Yes sir.


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## StarzykCPA (Aug 6, 2015)

You sure can. Just make sure you are keeping a written log of the miles driven.


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## Another Uber Driver (May 27, 2015)

Be it UberXmobile or Taxi, I note the miles at the beginning of work and at the end. I subtract begin from end, which renders a business mile, or "MILES ON" figure. If there are gaps between the opening mileage for a given day from the last day of working, I note those as non-business miles, or "MILES OFF". I keep a daily running total of MILES ON and MILES OFF. I note those MILES ON and MILES OFF in a monthly summary (which also contains income and expenses). At the end of the calendar year, I add up the two sets of twelve figures and render them to my accountant as total MILES ON and total MILES OFF for the year.

The question, then: If I do render these figures to my accountant, and, can document my rendering them to him (such as through a copy of a fax), but, he fails to take those miles into account (especially the MILES OFF) when calculating allowable dedcutions from the gross expenses on the vehicle for the year, I am liable for the additional tax due, but he is liable for all interest and penalties; is that correct? Further, as long as I gave the information to him, I am not subject to criminal prosecution, correct? I am aware that the accountant does render to me a draft return on which I do sign off, but I am signing to the "best of my knowledge". It would, indeed, be, to "the best of my knowledge" that he prepared the returns correctly. I do not know anything about doing taxes, so as far as I know, he did them correctly. The reason that I pay him is because I do not know how to do them properly (plus, I can write off his fee, at least every accountant that I have ever used always has included tax preparation fees in my deductions*).

One more question: cars, trucks and busses are the only machinery/conveyances whose use is calculated from miles driven. All other machinery/conveyances use is calculated from operating hours (boats, aeroplanes, railway locomotives). Does the Internal Revenue allow calculating use of a car, bus or truck from its operating hours?......or is it only miles driven?

Thank you. I do appreciate your presence here and your taking the time to help us with our tax questions. I appreciate the insight and information that you and the other tax professionals on this forum put out there for our benefit.








* The usual disclaimer that I am not a tax professional, thus, I am not qualified to dispense tax advice. Anyone wanting tax advice should seek the same from a professional who is qualified to dispense tax advice.


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## StarzykCPA (Aug 6, 2015)

Another Uber Driver said:


> The question, then: If I do render these figures to my accountant, and, can document my rendering them to him (such as through a copy of a fax), but, he fails to take those miles into account (especially the MILES OFF) when calculating allowable dedcutions from the gross expenses on the vehicle for the year, I am liable for the additional tax due, but he is liable for all interest and penalties; is that correct? Further, as long as I gave the information to him, I am not subject to criminal prosecution, correct? I am aware that the accountant does render to me a draft return on which I do sign off, but I am signing to the "best of my knowledge". It would, indeed, be, to "the best of my knowledge" that he prepared the returns correctly. I do not know anything about doing taxes, so as far as I know, he did them correctly. The reason that I pay him is because I do not know how to do them properly (plus, I can write off his fee, at least every accountant that I have ever used always has included tax preparation fees in my deductions*).


You would be responsible for the additional tax due along with the interest. You could likely request relief from the penalties due to reasonable cause from relying on your tax preparer. Unfortunately, the IRS by law can not remove the interest charges. You could try and recoup the interest from your tax preparer. Of course, if the years are still open, you may be able to amend the tax return to include the additional mileage as a deduction. (also your tax tax preparer may be subject to penalties, but those penalties would be completely separate)

You probably don't have to worry about criminal prosecution for something of this nature. That's normally left for those who evade taxes completely or severely under-report taxable income for years and years.



Another Uber Driver said:


> One more question: cars, trucks and busses are the only machinery/conveyances whose use is calculated from miles driven. All other machinery/conveyances use is calculated from operating hours (boats, aeroplanes, railway locomotives). Does the Internal Revenue allow calculating use of a car, bus or truck from its operating hours?......or is it only miles driven?


Generally no, you would need to use miles driven.

Be sure to clarify the way your track your mileage to your tax preparer to make sure you get the most deductions allowable.


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## Ubercentralnj (Oct 2, 2015)

StarzykCPA said:


> You sure can. Just make sure you are keeping a written log of the miles driven.


I very often just Uber from home. I turn on the app while I'm doing housework or watching tv, etc. I'lloften have 3 or 4 trips per night. Is it ok to deduct the miles from the pax dropoff back home assuming I have the app on the whole way home? On paper it looks a little sketchy with so many return to home trips. I just don't like sitting in parking lots waiting for pings.


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## IckyDoody (Sep 18, 2015)

Am I reading the OP incorrectly. It seems he is saying "I dropped off a pax, I'm done for now, I'm turning off the app and driving home. Can I log the miles on the drive home"? If this is the case, then surely he cant log these miles, right? These miles are not in pursuit of a fare/profit, they are commute miles. I seem to remember reading some irs publication that addresses this specifically.

As far as I can tell, the only app-off miles you should be logging are miles driven to more profitable areas (non-surge to surge area, short-trip area to long-trip area).

Ubercentralnj, as long as you are willing to accept trips on your way home then you are certainly operating within the spirit of the law if you log those miles.


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## Oscar Levant (Aug 15, 2014)

Uberest said:


> Quick question for the tax folks....... If I end up with a pax destination that is remote from home or work or where I need to be..... I have to turn the app off to avoid getting pings. Can I still deduct the miles I need to drive to go where need to go....? To clarify, I am at the pax destination and now want to go to home or work or some event. I turn the app off. Can instill deduct the miles?


I dont base my miles on an app, no more than I did with the meter on and off as a taxi driver. I record Starting miles, ending miles, and subtract the two, and taht's my miles for the shift. Keep personal miles separate from driving miles.


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## sf_matt (Oct 24, 2015)

Yes, and be sure to deduct your miles between trips. Stride Drive is a free app that makes it easy to record and log trips in the background, and automatically compute your tax deduction. Check it out!

Search in the Apple App Store: Stride Drive

I'll try to edit later with a direct link, won't allow me to post now. See the screenshot attached for an example.


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## Oscar Levant (Aug 15, 2014)

sf_matt said:


> Yes, and be sure to deduct your miles between trips. Stride Drive is a free app that makes it easy to record and log trips in the background, and automatically compute your tax deduction. Check it out!
> 
> Search in the Apple App Store: Stride Drive
> 
> I'll try to edit later with a direct link, won't allow me to post now. See the screenshot attached for an example.


I write off all the miles incurred for the purpose of servicing Uber clients, when the app is engaged, trip or no trip. If that app is engaged, the miles are for one purpose only, a business incuured mile. 


sf_matt said:


> Yes, and be sure to deduct your miles between trips. Stride Drive is a free app that makes it easy to record and log trips in the background, and automatically compute your tax deduction. Check it out!
> 
> Search in the Apple App Store: Stride Drive
> 
> I'll try to edit later with a direct link, won't allow me to post now. See the screenshot attached for an example.


The E-file software I use just asks me for the miles I drove.


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