# Four Quick Tax Tips to lower your Liability



## kc2018 (Dec 14, 2017)

1) Always do a destination home so you can write-off dead miles if you don't pickup anyone.
2) Write off your home office space on your taxes if you have a computer and work area to support your driving. You will write off the % of total space of house plus % of utilities. 
3) Take the mileage deduction on a new car but consider receipt deductions on an older car.
4) Write off any electronic equipment (car camera, etc) and all water, treats, etc. you buy.


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## Merc7186 (Jul 8, 2017)

kc2018 said:


> 1) Always do a destination home so you can write-off dead miles if you don't pickup anyone.
> *Except that is a big red flag if you are claiming miles on a day when you have zero income to show for it.*
> 2) Write off your home office space on your taxes if you have a computer and work area to support your driving. You will write off the % of total space of house plus % of utilities.
> *Except we write off mileage deductions and depreciation, so you cant justify this deduction.*
> ...


While I applaud you efforts in helping out the forum, you should know what you are doing before spewing out bad advice.

Or ask an accountant.....I may know a guy.


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## kc2018 (Dec 14, 2017)

Merc7186 said:


> While I applaud you efforts in helping out the forum, you should know what you are doing before spewing out bad advice.
> 
> Or ask an accountant.....I may know a guy.


Actually, I'm 100% spot on but you could be more specific if you have a valid point.

Use these two forms:

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf - schedule C main form
https://www.irs.gov/pub/irs-pdf/f8829.pdf - to write off home use expense


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## kc2018 (Dec 14, 2017)

Seamus said:


> I personally would absolutely NOT attempt to write off home office space for rideshare. I don't see any possible way that you could qualify under the rules. Take a look at the instruction booklet for form 8829. Don't see how ridesharing qualifies.
> 
> There is good information under the "taxes" forum. Just note "driver beware" there is a lot of misinformation too.


You have to maintain records, miles, tax forms, mapping, research, all kinds of things to support rideshare. I write mine off, with confidence. It's allowed if it is your only office and you use it to support your work. Period.


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## FLKeys (Dec 27, 2018)

Seamus said:


> I personally would absolutely NOT attempt to write off home office space for rideshare. I don't see any possible way that you could qualify under the IRS rules for deducting home office expenses.
> 
> There is good information under the "taxes" forum. Just note "driver beware" there is a lot of misinformation too.


I use my home office to transfer my hand written trip logs into Excel, verify all trips are properly recorded and paid, verify my deposits from rideshare companies are in my bank and proper, scan and record all receipts properly, researching and ordering all supplies, researching tax laws and filing taxes. Plus anything else the rideshare gig requires outside of driving. Why would this not be an acceptable home office write off? I maintain a desk and space specifically for this purpose.


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## kc2018 (Dec 14, 2017)

FLKeys said:


> I use my home office to transfer my hand written trip logs into Excel, verify all trips are properly recorded and paid, verify my deposits from rideshare companies are in my bank and proper, scan and record all receipts properly, researching and ordering all supplies, researching tax laws and filing taxes. Plus anything else the rideshare gig requires outside of driving. Why would this not be an acceptable home office write off? I maintain a desk and space specifically for this purpose.


Absolutely. This is exactly what it is for. I have done this for 13 years now. I have been self employed since 2005. As long as you do not have another office to do this work, it is a write off.

If you rent, this deduction is especially helpful because there is no other way to write off your housing expenses (home owners can write off interest)


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## kc2018 (Dec 14, 2017)

Seamus said:


> Honestly, not going to go back and forth with you but it would never stand up in an audit. Must be your *primary place of business* and used *exclusively *for your business, not to support your work.
> 
> Do what you want.


From IRS site:

Your home office will qualify as your principal place of business if you meet the following requirements.


You use it exclusively and regularly for administrative or management activities of your trade or business.

You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

====we are self employed, it is a business. You are wrong. Go ahead and overpay. We don't care.



kc2018 said:


> From IRS site:
> 
> Your home office will qualify as your principal place of business if you meet the following requirements.
> 
> ...


And, on part one, it means if you don't run three other businesses there and stream your League of Legends all day.

"home office expenses. Most people don't think of this one. But as long as you qualify under the tax rules and use a portion of your home regularly and exclusively for your driving business (for example, recordkeeping), you can deduct home office expenses for that portion of your home"


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## FLKeys (Dec 27, 2018)

Seamus said:


> Honestly, not going to go back and forth with you but it would never stand up in an audit. Must be your *primary place of business* and used *exclusively *for your business, not just to support your work.
> 
> Do what you want. It's all fun until your first audit!


IRS Publication 587 Page 3&4:
Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.


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## kc2018 (Dec 14, 2017)

FLKeys said:


> IRS Publication 587 Page 3&4:
> Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.


And don't forget the utilities.

So, if it's 10% of your home used for biz, 10% of your utilities also are written off (electric, water, gas, etc)!!

Why let rich people have all the fun?


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## FLKeys (Dec 27, 2018)

Every legal deduction adds up and I try not to miss any. My home use is only 3% but better than nothing. When the kids move out I can turn one of the spare bedrooms into a bigger office and claim 12%


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## kc2018 (Dec 14, 2017)

FLKeys said:


> Every legal deduction adds up and I try not to miss any. My home use is only 3% but better than nothing. When the kids move out I can turn one of the spare bedrooms into a bigger office and claim 12%


Nailed it!

I ran a profitable biz out of my house for 7 years so I could live upstairs and work downstairs. I wrote off more than 50% for years. I had pictures to prove it, too.


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## Seamus (Jun 21, 2018)

We are specificly talking about* rideshare* not other forms of business.

You have left out some of your copy and paste. Here is the relevant part you left out.

In determining whether the office in your home qualifies as your principal place of business, you must consider the following two items.


The relative importance of the activities performed at each place where you conduct business, and

The amount of time spent at each place where you conduct business.

This is why I don''t like getting involved in these conversations. If it works for you then do it.


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## kc2018 (Dec 14, 2017)

Seamus said:


> We are specificly talking about* rideshare* not other forms of business.
> 
> You have left out some of your copy and paste. Here is the relevant part you left out.
> 
> ...


Nothing you quoted disputed what we've talked about.

You have to have a place to do the paperwork and everything else involved with working. The gov't knows we have to be able to do these things so this is a routine deduction that anyone who is well informed uses. Do not cower in fear of an audit. You are not doing anything wrong by writing off legitimate business expenses. I have literally taken this deduction every year since 2001 because I've always been outside sales or self-employed.


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## Merc7186 (Jul 8, 2017)

...I love to see you in an audit room with all of this. 

I sincerely hope that you never get audited because you will be in for a rude awakening if you get someone who knows what they are doing.


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## LAuberX (Jun 3, 2014)

So you use the "home office" 100% for Uber/Lyft?

you never pay other bills there?
you never use the computer for other things?
you are never in there except to do Uber tasks?


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## kc2018 (Dec 14, 2017)

LAuberX said:


> So you use the "home office" 100% for Uber/Lyft?
> 
> you never pay other bills there?
> you never use the computer for other things?
> you are never in there except to do Uber tasks?


So, if you use your cell phone for ubering and to occasionally watch porn, are you still going to write off your cell phone bill? Real question.

We are creatures of work. We only have these things to support working. We mostly sleep, eat, and work. Of course, you should write off this expense.

Be men, not mice. The gov't does not own you. Quit cowering.


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## LAuberX (Jun 3, 2014)

I don't write off my cell phone, or home office. Neither is used 100% for business.

The standard mileage allowance is more than enough to pay zero taxes, keep a log, make entries at the start and end of each shift.


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## kc2018 (Dec 14, 2017)

LAuberX said:


> I don't write off my cell phone, or home office. Neither is used 100% for business.
> 
> The standard mileage allowance is more than enough to pay zero taxes, keep a log, make entries at the start and end of each shift.


You must get earned income credit. Do you have children you write off? A normal person will still have something left after mileage that hits you under Self employment tax. It's usually inescapable unless you get your income to $0 on the Schedule C

Almost every company in America has employees who use their company cell phones for (sometimes personal) and they write off the whole thing. Quit cowering.


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## LAuberX (Jun 3, 2014)

How many years have you had Uber for 100% of your income?

I'm just trying to gauge the depth of experience in your answers.


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## kc2018 (Dec 14, 2017)

LAuberX said:


> How many years have you had Uber for 100% of your income?
> 
> I'm just trying to gauge the depth of experience in your answers.


Do you have children you write off? You do, right? That is the almost the only way you would have zero tax liability.

The reason is you have to pay self employment taxes (Minimum) on whatever is left on the schedule C. There are only a few things that offset that number and they are mostly credits (like EIC...people with children make a killing on this).

Many people do not qualify for these credits so we have to write off everything legitimate we can on the Schedule C.


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## LAuberX (Jun 3, 2014)

kc2018 said:


> Do you have children you write off? You do, right? That is the almost the only way you would have zero tax liability.
> 
> The reason is you have to pay self employment taxes (Minimum) on whatever is left on the schedule C. There are only a few things that offset that number and they are mostly credits (like EIC...people with children make a killing on this).
> 
> Many people do not qualify for these credits so we have to write off everything legitimate we can on the Schedule C.


I'm not seeing the answer to my question here.

How many years have you filed taxes with Uber as 100% of your income??


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## kc2018 (Dec 14, 2017)

LAuberX said:


> I'm not seeing the answer to my question here.
> 
> How many years have you filed taxes with Uber as 100% of your income??


Look, you are trying to short circuit a valid argument with a non-sequiter.

So far, you mentioned that people won't owe any taxes because mileage is a large enough write-off. That is not true.

I will add (to be more specific). If a person only drives one month a year.....do not take this write-off. I am talking about people who drive full time or earn the majority of their income from rideshare.

Thanks for discussing the matter. We will agree to disagree. My arguments stand because I have researched this matter at length.


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## Seamus (Jun 21, 2018)

kc2018 said:


> Nothing you quoted disputed what we've talked about.
> 
> You have to have a place to do the paperwork and everything else involved with working. The gov't knows we have to be able to do these things so this is a routine deduction that anyone who is well informed uses. Do not cower in fear of an audit. You are not doing anything wrong by writing off legitimate business expenses. I have literally taken this deduction every year since 2001 because I've always been outside sales or self-employed.
> 
> ...


The fact he won't answer tells you all you need to know


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## FLKeys (Dec 27, 2018)

LAuberX said:


> I'm not seeing the answer to my question here.
> 
> How many years have you filed taxes with Uber as 100% of your income??


Does it matter if Uber is 1% or 100% of your/my/his income?

These two bullet points from the IRS Publication is all that matters.

You use it exclusively and regularly for administrative or management activities of your trade or business. (I have a small area set aside in my house that I use exclusively for rideshare activities and use it every day that I drive.)

You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. (My car is not a fixed location and I can not do my administrative activities in it. Driving and picking people up is not administrative activities. Keeping my logs and other paperwork is administrative activities.)
I get that some people think this is a red flag for an audit, so what, audit me, I am 100% legit and all the records I need to stand up to an audit are in my HOME OFFICE. That is why I show a profit doing rideshare and why I take every deduction I can. If you don't show a profit chances are you are faking your mileage logs to off set all income or you are just poorly managing your driving time in which case why would you bother driving in the first place if you are not making a profit.


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## LAuberX (Jun 3, 2014)

I'm fairly certain nobody has a home office for rideshare thay use 100% for rideshare.(that is the IRS test, 100% business use)

Just like I'm certain no one has a computer they use 100% for rideshare.

No one has a cell phone they use 100% for rideshare (unless they have separate accounts and phone numbers)

I'm sure it's market dependent but in Los Angeles there are plenty of dead miles to offset the low rates paid for paid miles.

I'm guessing you haven't had 100% rideshare income and tax returns for a number of years to base this information on?


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## SamuelB (Aug 29, 2018)

kc2018 said:


> So, if you use your cell phone for ubering and to occasionally watch porn, are you still going to write off your cell phone bill? Real question.





LAuberX said:


> I don't write off my cell phone, or home office. Neither is used 100% for business


You write off the % you use your phone for business. I plan on writing off 75% of my cell phone bill. iPhone now has a screen time report that it notifies you of once a week. I screencap that to show my business apps are the majority of my phone use.


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## FLKeys (Dec 27, 2018)

LAuberX said:


> I'm fairly certain nobody has a home office for rideshare thay use 100% for rideshare.(that is the IRS test, 100% business use)
> 
> Just like I'm certain no one has a computer they use 100% for rideshare.
> 
> ...


Well I have an office area that is used for rideshare only. It is not a huge area but it is there, it represents 3% of my floor space and yes all I do in it is my rideshare record keeping. It is not hard to set up especially if you have a little unused space in your house. It does not need to be a separate room locked off. A simple file cabinet, desk and chair in the corner of a room is all that is needed.

No where does it say you have to have a computer exclusive to rideshare. I use my laptop and carry it in there to do so. I'm not claiming my laptop I'm claiming my home office space.

I don't have enough dead miles to write off my income, if I did I don't think it would benefit me enough to continue doing rideshare.

I don't have 100% rideshare income and numbers of years, it has nothing to do with what you can legally claim. Find a good CPA that specializes in self employeed income tax and ask.


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## UberTaxPro (Oct 3, 2014)

A home office is a viable option for a ride-share business that conducts itself as a business (keeps books,files taxes etc...). It will give you another schedule c deduction and make all business trips to and from that office a "business expense". Anyone electing to use the home office deduction should be aware however that if they use the "regular" home office deduction method the depreciation taken will be subject to "recapture" when the house is sold. This can be an unpleasant surprise if not prepared. You can still get the deduction benefit without the recapture issue by using the "simplified method" under revenue procedure 2013-13.

To qualify for the EIC one has to have at least $1 earned income. If you lower your earned income below 0 with schedule c deductions you will not qualify for the EIC.


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