# Deductions



## ubereats2020 (Mar 27, 2020)

if the standard mileage deduction is claimed, can we also claim cellphone monthly payments?
the phone was used for both personal and business but the monthly payment was fixed and not based on talk time and used data.


are there any other deductions on top of the standard mileage deduction?


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## Seamus (Jun 21, 2018)

ubereats2020 said:


> if the standard mileage deduction is claimed, can we also claim cellphone monthly payments?
> the phone was used for both personal and business but the monthly payment was fixed and not based on talk time and used data.


Yes. If the phone is used for both personal and business you estimate the percentage used for business of the total and that's the amount you expense on your schedule C.


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## Daisey77 (Jan 13, 2016)

ubereats2020 said:


> if the standard mileage deduction is claimed, can we also claim cellphone monthly payments?
> the phone was used for both personal and business but the monthly payment was fixed and not based on talk time and used data.
> 
> are there any other deductions on top of the standard mileage deduction?


Car Cleaning supplies and snacks for passengers. Also any cell phone equipment such as phone mounts, charging cables, etc


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## _Tron_ (Feb 9, 2020)

Good points on those ancillary (non-transport related) expenses. I have never had a need to take such deductions because, like many drivers, I am already negative on the P/L after applying the mileage deduction. However, for first time (2020) delivery drivers, they should be looking for any possible expenses to mitigate that income tax liability, eh?


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## kingcorey321 (May 20, 2018)

I am not close to a tax pro lol I ask my questions with the pros
I do know they told me i can claim the miles for the 1099 not combining anything else . Whatever is greater .
The miles over lapped all the tax owed anyways.
But if you have a 1099 and a w2 Might be a different story ? If you have over 12000 worth of expenses Its time to claim everything


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## Older Chauffeur (Oct 16, 2014)

kingcorey321 said:


> I am not close to a tax pro lol I ask my questions with the pros
> I do know they told me i can claim the miles for the 1099 not combining anything else . Whatever is greater .
> The miles over lapped all the tax owed anyways.
> But if you have a 1099 and a w2 Might be a different story ? If you have over 12000 worth of expenses Its time to claim everything


If I understand what you are suggesting, I think the over $12000 in deductions (not expenses) would come off your adjusted gross income. Deductions are things like mortgage interest, property taxes, medical costs, etc.
OTOH, you use the expenses incurred as an independent contractor against the income reported on a 1099misc
when you fill out your Schedule C in order to lower the net earnings (if any) that become part of that adjusted gross income.

Disclosure: I am not a tax professional.


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## Stevie The magic Unicorn (Apr 3, 2018)

Another thing would be repairing damage to your vehicle caused by a passenger,

this would fall under the catogory of vandalism and it would be deductible to pay for the repair.

Paying a large sum of money for vomit cleanup would be another example.


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## Diamondraider (Mar 13, 2017)

I wonder if a new transmission is considered a capital expense. 

When i bought for restaurants, replacement dishes were expenses, but refitting the entire china and flatware in one shot was a capital expense.


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## Older Chauffeur (Oct 16, 2014)

Diamondraider said:


> I wonder if a new transmission is considered a capital expense.
> 
> When i bought for restaurants, replacement dishes were expenses, but refitting the entire china and flatware in one shot was a capital expense.


Maybe the cost of a new transmission, when added to all the other actual costs of vehicle operation, would exceed the SRM deduction for business use on Schedule C. You would need to apply the business use percentage to the total, of course. AFAIK, repairs come under either SRM or actual expenses, but I'm not a tax professional. Maybe @UberTaxPro will weigh in with advice for you. Good luck.


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## Taxi2Uber (Jul 21, 2017)

I have 2 phones, 1 personal and 1 for Uber/Lyft.
I haven't driven since March.
Can I still write off the Uber/Lyft phone expense for the whole year?
Didn't know when things could start up again.
Plus I didn't want to cancel the line, lose the number, lose the multi-line discount, then add a line again once I drive again.


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## islanddriver (Apr 6, 2018)

Diamondraider said:


> I wonder if a new transmission is considered a capital expense.
> 
> When i bought for restaurants, replacement dishes were expenses, but refitting the entire china and flatware in one shot was a capital expense.


If you claim milage new trans an any repair is not deductible.


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## UberTaxPro (Oct 3, 2014)

Older Chauffeur said:


> Maybe the cost of a new transmission, when added to all the other actual costs of vehicle operation, would exceed the SRM deduction for business use on Schedule C. You would need to apply the business use percentage to the total, of course. AFAIK, repairs come under either SRM or actual expenses, but I'm not a tax professional. Maybe @UberTaxPro will weigh in with advice for you. Good luck.


*GAAP* allows companies to *capitalize costs* if they're increasing the value or extending the useful life of the asset. For example, a company *can capitalize* the *cost* of a new transmission that will add five years to a company delivery truck, but it *can*'t *capitalize* the *cost* of a routine oil change. https://smallbusiness.chron.com/gaap-rules-capital-expenditures-77592.html


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## islanddriver (Apr 6, 2018)

Taxi2Uber said:


> I have 2 phones, 1 personal and 1 for Uber/Lyft.
> I haven't driven since March.
> Can I still write off the Uber/Lyft phone expense for the whole year?
> Didn't know when things could start up again.
> Plus I didn't want to cancel the line, lose the number, lose the multi-line discount, then add a line again once I drive again.


If it is a phone just for business yes you can deduct it


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## UberTaxPro (Oct 3, 2014)

Diamondraider said:


> I wonder if a new transmission is considered a capital expense.
> 
> When i bought for restaurants, replacement dishes were expenses, but refitting the entire china and flatware in one shot was a capital expense.


*GAAP* allows companies to *capitalize costs* if they're increasing the value or extending the useful life of the asset. For example, a company *can capitalize* the *cost* of a new transmission that will add five years to a company delivery truck, but it *can*'t *capitalize* the *cost* of a routine oil change. https://smallbusiness.chron.com/gaap-rules-capital-expenditures-77592.html


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## KenLV (Jun 23, 2017)

Don't forget your home office deduction.


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## Diamondraider (Mar 13, 2017)

UberTaxPro said:


> *GAAP* allows companies to *capitalize costs* if they're increasing the value or extending the useful life of the asset. For example, a company *can capitalize* the *cost* of a new transmission that will add five years to a company delivery truck, but it *can*'t *capitalize* the *cost* of a routine oil change. https://smallbusiness.chron.com/gaap-rules-capital-expenditures-77592.html


Thank you. That is what I experienced in the past.


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## Seamus (Jun 21, 2018)

If anyone wants an idea of what they can expense simply Google it, there is a lot of information available. Or, you can look at the schedule C while looking at the IRS publication instructions that go with it.

People miss a lot of expenses they can write off if they aren’t careful. For example, if you have a business bank account you can expense the bank fees. Just a small example.


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## Daisey77 (Jan 13, 2016)

Can I expense upgrades or Modifications to my car that enhance the passenger experience? 😁


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## islanddriver (Apr 6, 2018)

Daisey77 said:


> Can I expense upgrades or Modifications to my car that enhance the passenger experience? &#128513;


like what upgrades i did seat covers floor mats etc.


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## Daisey77 (Jan 13, 2016)

islanddriver said:


> like what upgrades i did seat covers floor mats etc.


What about a vinyl wrap? Stereo system ? After all 90% of pax DO ask for music &#128518; Ooooh what about the cost of deadening the truck? That 100% completely provides better ride quality for the passengers!


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## wallae (Jun 11, 2018)

Daisey77 said:


> Can I expense upgrades or Modifications to my car that enhance the passenger experience? &#128513;


Yes...And he appreciates the extra padding in the floor mats


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## Older Chauffeur (Oct 16, 2014)

I think it all comes down to what things you feel you convince an IRS auditor you needed to do your vehicle in order to make your business profitable to the point where you can justify continuing to operate. OTOH, if the cost of those questionable items just happened to allow you to claim an operating loss, it might be a little harder to convince the guy that the items were necessary for the comfort and pleasure of your riders.


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## Daisey77 (Jan 13, 2016)

I think the vinyl wrap is absolutely a good business decision. It literally protects your asset. Therefore holding up its value. It protects your paint! Not in an accident necessarily but but it does protect it from anything that brushes up against it that would normally scratch the paint. Also it would allow for paintless dent repair to happen instead of actually fixing the dent and having to paint it. It also protects the paint from oxidizing in the Sun. Great investment!


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## islanddriver (Apr 6, 2018)

Daisey77 said:


> I think the vinyl wrap is absolutely a good business decision. It literally protects your asset. Therefore holding up its value. It protects your paint! Not in an accident necessarily but but it does protect it from anything that brushes up against it that would normally scratch the paint. Also it would allow for paintless dent repair to happen instead of actually fixing the dent and having to paint it. It also protects the paint from oxidizing in the Sun. Great investment!


If it said uber lyft Etc. you could claim it......


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## Daisey77 (Jan 13, 2016)

islanddriver said:


> If it said uber lyft Etc. you could claim it......


Its Lyft pink &#128513;&#128526;


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## FLKeys (Dec 27, 2018)

Right or wrong I write off things that benefit the PAX and or make the vehicle better. I break them into 2 categories. Rideshare only and Rideshare/Personal. If rideshare only I write off 100% is Rideshare/Personal I write of based on percent of business miles.

Cable for PAX to charge phone - 100% write off.
Upgraded floor mats - % based off miles.
XM Radio - % based off miles.
Dash Cam - 100% write off
Note Pads, pens - 100% write off
etc, etc


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## Daisey77 (Jan 13, 2016)

Can parking tickets be included in with parking fees if acquired while online?

Damage repairs that were a result of Passengers You can claim right?


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## islanddriver (Apr 6, 2018)

Daisey77 said:


> Can parking tickets be included in with parking fees if acquired while online?
> 
> Damage repairs that were a result of Passengers You can claim right?


Parking or any other tickets you cant claim. (anything against the law can't be claimed).


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## Driver100 (Aug 1, 2015)

The test is whether the expense is ordinary, necessary and reasonably related to the production of the self-employment income (Uber). Generally, that's going to be a mileage deduction, cell phone attributable to business use (e.g. 50% uber/ 50% personal), and car detailing- that's about it for most drivers.


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## Daisey77 (Jan 13, 2016)

islanddriver said:


> Parking or any other tickets you cant claim. (anything against the law can't be claimed).


Well they weren't issued by the city. these would have been private parking lots with private hired parking monitors. So maybe more like a violation of their policy? I don't know if it's breaking the law per se. In fact police won't go on private property to issue a parking ticket or a moving violation. they won't even go on private property on a report of an accident


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## Judge and Jury (Oct 19, 2019)

Older Chauffeur said:


> Maybe the cost of a new transmission, when added to all the other actual costs of vehicle operation, would exceed the SRM deduction for business use on Schedule C. You would need to apply the business use percentage to the total, of course. AFAIK, repairs come under either SRM or actual expenses, but I'm not a tax professional. Maybe @UberTaxPro will weigh in with advice for you. Good luck.


Back when I was a manager for newspaper distribution, I documented every mile driven, every gass fill-up, oil change, tire replacement, etc. Even including a transmission rebuild, the standard mileage deduction was more than 2.5 times more than the actual expenses.

Record your mileage.

In my situation, it is from the time I leave my driveway until I return to my driveway.



KenLV said:


> Don't forget your home office deduction.


Yep. This is why I claim my mileage from driveway at my home back to my driveway.


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## Older Chauffeur (Oct 16, 2014)

Daisey77 said:


> Well they weren't issued by the city. these would have been private parking lots with private hired parking monitors. So maybe more like a violation of their policy? I don't know if it's breaking the law per se. In fact police won't go on private property to issue a parking ticket or a moving violation. they won't even go on private property on a report of an accident


It's different here in CA. If the proper signs warning of enforcement are posted, vehicle code violations can earn a ticket, including parking violations, especially red curb and handicapped scofflaws.


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## FLKeys (Dec 27, 2018)

Daisey77 said:


> Well they weren't issued by the city. these would have been private parking lots with private hired parking monitors. So maybe more like a violation of their policy? I don't know if it's breaking the law per se. In fact police won't go on private property to issue a parking ticket or a moving violation. they won't even go on private property on a report of an accident


Sounds like parking fees to me. :wink:

What happens if you don't pay them? Is it like a bill that gets turned over to collections or does your license get suspended?


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## Daisey77 (Jan 13, 2016)

FLKeys said:


> Sounds like parking fees to me. :wink:
> 
> What happens if you don't pay them? Is it like a bill that gets turned over to collections or does your license get suspended?


I think so too &#128517;

They turn it over to collections. it was a privately owned parking lot. Not city ran.



Older Chauffeur said:


> It's different here in CA. If the proper signs warning are posted, vehicle code violations can earn a ticket, including parking violations, especially red curb and handicapped scofflaws.


oh we have those as well but this was a privately owned parking lot. So they only have the ability to issue a ticket and send it to collections if not paid


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## FLKeys (Dec 27, 2018)

Daisey77 said:


> I think so too &#128517;
> 
> They turn it over to collections. it was a privately owned parking lot. Not city ran.
> 
> ...


Definitely sounds like parking fees to me.


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## Daisey77 (Jan 13, 2016)

@UberTaxPro explain this 7202 form. It's not able to be e-filed correct? So does that mean I have to print everything off and do the old-fashioned snail mail? Also, I've heard there's no way around this form. You have to address it regardless of whether you get the credit or not. Is that true or can I just delete the form from TurboTax and file? Thank you in advance&#128516;


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## UberTaxPro (Oct 3, 2014)

Daisey77 said:


> @UberTaxPro explain this 7202 form. It's not able to be e-filed correct? So does that mean I have to print everything off and do the old-fashioned snail mail? Also, I've heard there's no way around this form. You have to address it regardless of whether you get the credit or not. Is that true or can I just delete the form from TurboTax and file? Thank you in advance&#128516;


if you didn't pay employees any sick pay or medical leave pay it's not necessary. Not sure about the turbo tax issues. If a form can't be efiled, try attaching as a pdf


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## Daisey77 (Jan 13, 2016)

UberTaxPro said:


> if you didn't pay employees any sick pay or medical leave pay it's not necessary. Not sure about the turbo tax issues. If a form can't be efiled, try attaching as a pdf


I think they expanded it this year for covid-19 . So self employed people are able to use the sick leave portion themselves. As for the form itself, it Sounds like the government just finally released the actual form to use but TurboTax doesn't have it available yet. However, it also sounds like this form is not allowed to be efiled it must be mailed in. &#129335;‍♀


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