# Rideshare Is A New Industry. What Does That Mean To Your Taxes?



## LADryver (Jun 6, 2017)

When someone finds the words "Uber", "Lyft", "Rideshare" in any official IRS made publication, please share the name of the publication and the page number. If you find it, please share it. Until then, there will be a bit of a wait. Because we aren't in the books yet. 

What does that mean to your taxes? It means you can not use any short cuts and you have to know your job. It means you can not and should not pretend you fit the model of a Sales Representative or Insurance Broker or any other fantasies "close-enough" because nothing is close enough. 

It means IRS has to learn from You, the collective YOU. You have to do it right. Go to a face-to-face desk jockey tax professional. Someone who owns their own business name. Someone who is available year round. Tell him EXACTLY what ALL your job is. All of it. He will help you report it correctly. DO NOT USE THE PHRASE "DEAD-HEAD".


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## Older Chauffeur (Oct 16, 2014)

https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work


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## LADryver (Jun 6, 2017)

Older Chauffeur said:


> https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work


That was a good find and I reviewed it. It does not address the hottest topic we know which is mileage. Soon, be it next year or the year after, it is likely that it may. I checked the site and on January 9, only 15 days ago, they published a center for the gig economy. But that still also does not yet address the most burning question of mileage and mileage records. They do however say to rely on the information given by the company. And that too is a problem when there is more than one company.

Try this search and see it for yourself. They do not tell us to go to the publication for using your car. There will, I predict, be a new publication for us, considering how many people use multiple apps.

https://www.irs.gov/site-index-sear...eld_pup_historical_1=1&field_pup_historical=1


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## Older Chauffeur (Oct 16, 2014)

LADryver said:


> They do not tell us to go to the publication for using your car.


They refer you to Pub 463, where you can find the rules for deducting business use of your vehicle.


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## LADryver (Jun 6, 2017)

Older Chauffeur said:


> They refer you to Pub 463, where you can find the rules for deducting business use of your vehicle.


Where on the Gig economy site does it refer to it? Where in the publication does it refer to the gig economy, rideshare, lyft or uber?

The Gig Economy Center is a "Placeholder" site where more information will be made available as it develops.


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## JaxUberLyft (Jan 9, 2019)

nothing new here...folks have been tallying biz mileage for decades.

The one difference in many of our cases is that a LyftUber biz is hard pressed not to show a loss in many markets...more markets every year!

A biz that continually shows a loss might be reclassified as a hobby, and since 2018, NO hobby expenses are deductible but ALL hobby revenue must be included as income...this would be an unmitigated disaster for Lyftubers.


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## Older Chauffeur (Oct 16, 2014)

LADryver said:


> Where on the Gig economy site does it refer to it?


Under the subheading "Get Ready to File."


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## LADryver (Jun 6, 2017)

Older Chauffeur said:


> Under the subheading "Get Ready to File."


I found it. Pub 436, page 25 and 26 shows you that you can use one combined business mileage entry per route. We have on demand routes. Our routes are when the app is on. That is what applies to us. But Rideshare is not listed in the example. A delivery route is. See the quote in the new thread for it. Single line entry ok.

IRS will provide Rideshare examples over time.


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## LADryver (Jun 6, 2017)

JaxUberLyft said:


> nothing new here...folks have been tallying biz mileage for decades.
> 
> The one difference in many of our cases is that a LyftUber biz is hard pressed not to show a loss in many markets...more markets every year!
> 
> A biz that continually shows a loss might be reclassified as a hobby, and since 2018, NO hobby expenses are deductible but ALL hobby revenue must be included as income...this would be an unmitigated disaster for Lyftubers.


Why cant you see what is unique about Uber? Hint: It has nothing to do with what you said.

On the hobby loss issue. Since revenue per mile exceeds the mileage rate per mile, it is nearly impossible to use the standard deduction and lose money in the complete year. Some times may be slow but most often there is continued activity. It would happen only if you are wasting your time in your car with the app on but either not getting pings when you could he doing something else or if you are refusing to take pings that come. The key to hobby or business is that you have to have and express a profit motive. It comes down to that. A deduction motive is not a profit motive.


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