# New driver - finished 1st week at $232.



## SlimJim72 (1 mo ago)

But it is December and I probably won't even break $1000.

I have not kept track of mileage.

My car lease payment is $589/mo. It is an EV.

I am planning to deliver food for maybe about 10 hours a week.

*Should I use the standard mileage deduction or detailed deduction?*

My daily commute to my real job is 22 miles round trip.
So I am guessing I will be using the car 130 miles per week for personal use, and 260 miles for delivering food. (67% x $589 = $392)

Car Insurance is $110/mo. (67% x $110 = $73)

Phone payment = $31 (67% x $31 = $21)
Phone data bill = $30 ( 67% = $20).
Tires purchased this year = $600. Do I prorate this with 67% as well? $400?



So if I did standard deduction 260 miles x 4 x $0.60 = $624.

Detailed deduction = $906.

It looks like I will be better off with standard deduction next year... What do you think?

Thank you.


----------



## bobby747 (Dec 29, 2015)

No exbert . But once your choose actual deductions you cannot go back the following year with standard deductions..ask a tax guy. Standard works best for most. Actual works best for me...99% not as you guys put a ton of miles
1000 mile a week driver can deduct approximately $600 per week while earning avg $1200 or less.
You getting ahead of yourself with tires and other stuff at this moment


----------



## Atavar (Aug 11, 2018)

Defer to your tax professional for taxes. The rest of your life plays in to what is the best choice. 
Start a log with at least starting and ending miles and expenses every day you work. A simple spreadsheet is sufficient. Save receipts. 
Be careful of miles with a lease. They can eat you alive. Leasing for rideshare is rarely a good idea.


----------



## 68350 (May 24, 2017)

Leasing through....?? If a dealer lease, read the contract. Many will prohibit commercial use.


----------



## nosurgenodrive (May 13, 2019)

SlimJim72 said:


> But it is December and I probably won't even break $1000.
> 
> I have not kept track of mileage.
> 
> ...


Yeah, make sure you don't have a mileage cap on your lease.

Pro tip. Set a destination filter towards your work or get a delivery in that direction and you are no longer using your vehicle for personal use.


----------



## bobby747 (Dec 29, 2015)

We have a personal lease suv. 100% going to buy it in 18 months 7k on it wifes car. 
Sorry I did not read lease be carefull. Super pastime is the only way. We get 12k a year x 36 mths
Your theory of 400 miles a week total is 20800 miles a year. You will be over the miles.


----------



## SuperStar3000 (Jun 16, 2016)

Miles driven are automatically tracked by Uber and will be shown in your account on Uber's website.

Get in touch with a local tax preparer. 
It should only cost about a hundred bucks for the consultation, and they are all quite familiar with the needs of rideshare drivers and will work out the best tax strategy for your situation. 
Uber drivers are often surprised when they discover how little they actually owe after deductions. 
You will save a lot of money and stress, knowing that a professional is managing the details.

Consider using only one credit card for _all _of your driving expenses, including gas, oil changes, repairs, car washes, air fresheners, etc., but not for personal purchases. 
Using a dedicated card exclusively for your business expense will make tax prep much easier - and you won't even need to save any receipts because the monthly itemized bank statements will be adequate for the purpose of record keeping and reporting..


----------



## Daisey77 (Jan 13, 2016)

If you want to be able to switch back and forth during the rest of the years the car is in service, you have to do standard the first year. If you do itemized, you have to stick with that for the entire time the vehicle is in service


----------



## Atavar (Aug 11, 2018)

SuperStar3000 said:


> Miles driven are automatically tracked by Uber and will be shown in your account on Uber's website.


Uber tracking does not include dead miles - those to get to the pickup and back from the drop off. Those count. That is why I recommend recording odometer at start and end of shift.


----------



## oldfart (Dec 22, 2017)

First of all keep track of mileage you will need that either way you do your taxes. However I don’t think you can use the standard deduction with a leased car, but you can deduct the lease payment (the business percentage) along with the other actual expenses

if your lease is for 12000 miles a year (1000 miles a month, you will exceed that by over 7000 miles a year, know what your overage fee is and either prepare to pay it. Or if you are sure you will buy the car, than who cares. Just be sure you know what your “buy” price will be at the end of the lease and make sure you have it or can borrow it


I have trouble thinking in terms of just 10 hours a week, most weeks I drive over 50 hours a week but I still consider what I’m doing, if not part time, it is only a part of my total income. You should be able to make enough to cover your car payment, and expenses, and with a little luck buy the car at the end of the lease luck

good luck


----------



## Atavar (Aug 11, 2018)

SuperStar3000 said:


> you
> Consider using only one credit card for _all _of your driving expenses, including gas, oil changes, repairs, car washes, air fresheners, etc., but not for personal purchases.
> Using a dedicated card exclusively for your business expense will make tax prep much easier - and you won't even need to save any receipts because the monthly itemized bank statements will be adequate for the purpose of record keeping and reporting..


Great advice. I like using the app debit card for this. In addition to the benefits listed above it gets any monies out of your U/L account immediately so that if your account is compromised there is nothing for them to steal.


----------



## Seamus (Jun 21, 2018)

SlimJim72 said:


> But it is December and I probably won't even break $1000.
> 
> I have not kept track of mileage.
> 
> ...


There are more questions than answers at this point.

If I was your tax prep guy the first thing I would want to know more about is your car Lease agreement. Who is the car leased thru? Is the car titled and registered in your name? What is the annual mileage cap vs anticipated mileage?

There are several basics about a lease that are going to impact or even limit which method you can use.


----------



## oldfart (Dec 22, 2017)

Atavar said:


> Uber tracking does not include dead miles - those to get to the pickup and back from the drop off. Those count. That is why I recommend recording odometer at start and end of shift.


I think it does record all on app miles(including dead miles) but your advice to keep a log is excellent advice


----------



## Atavar (Aug 11, 2018)

oldfart said:


> I think it does record all on app miles(including dead miles) but your advice to keep a log is excellent advice


When I did my last taxes Uber’s mile quote was 40% of my log totals. Just FYI. YMMV


----------



## SlimJim72 (1 mo ago)

oldfart said:


> First of all keep track of mileage you will need that either way you do your taxes. However I don’t think you can use the standard deduction with a leased car, but you can deduct the lease payment (the business percentage) along with the other actual expenses
> 
> if your lease is for 12000 miles a year (1000 miles a month, you will exceed that by over 7000 miles a year, know what your overage fee is and either prepare to pay it. Or if you are sure you will buy the car, than who cares. Just be sure you know what your “buy” price will be at the end of the lease and make sure you have it or can borrow it
> 
> ...



This settles it. I can only do itemized deduction with a leased car.

My lease ends next June. Total allowed miles = 36000. Current odometer = 22800 miles. So I have plenty of mileage left.
My next car will be a purchase most likely.

Thank you.


----------



## Atavar (Aug 11, 2018)

Again, even excellent advice you get here is only worth what you paid for it. Verify everything with your tax professional.


----------



## 25rides7daysaweek (Nov 20, 2017)

SlimJim72 said:


> But it is December and I probably won't even break $1000.
> 
> I have not kept track of mileage.
> 
> ...


Return the fancy car and get a much cheaper one
You are gonna go down the tubes....
Dont worry about deductions right now
Figure out what you are doing first...
I would be looking at passengers if I were you


----------



## Wildgoose (Feb 11, 2019)

Since you don't own that car, Standard mileage couldn't be applied but those could be deductible. talk to your tax guy. 

(1) Leasing cost ( definitely but lease should be legal in paper )
(2) Portion of your Electric bill
(3) Maintenance costs ( tire, wiper and such ) 
(4) Car wash, cleaning fees and supplies


----------



## Launchpad McQuack (Jan 8, 2019)

Daisey77 said:


> If you want to be able to switch back and forth during the rest of the years the car is in service, you have to do standard the first year. If you do itemized, you have to stick with that for the entire time the vehicle is in service





oldfart said:


> However I don’t think you can use the standard deduction with a leased car.....





SlimJim72 said:


> This settles it. I can only do itemized deduction with a leased car.





Wildgoose said:


> Since you don't own that car, Standard mileage couldn't be applied.....


You can use the standard mileage deduction for a leased vehicle. You just can't switch back and forth between the standard mileage deduction and actual expenses from year to year. You have to pick one or the other and then stick with it for the duration of the lease.


----------



## Seamus (Jun 21, 2018)

Launchpad McQuack said:


> You can use the standard mileage deduction for a leased vehicle.


That's correct, those that said you can't are wrong. HOWEVER, the car must be titled and registered in your name. People who short term lease Taxis or Hertz rentals for Uber etc.etc. cannot use the standard mileage deduction. You can't use it on a vehicle you don't fix and maintain and in that case must use the actual expense method.


----------



## Wildgoose (Feb 11, 2019)

Launchpad McQuack said:


> You can use the standard mileage deduction for a leased vehicle. You just can't switch back and forth between the standard mileage deduction and actual expenses from year to year. You have to pick one or the other and then stick with it for the duration of the lease.


Itemize deduction on leasing cost will be higher deduction than standard mileage deduction.
He better use that option, I guess.


----------



## SlimJim72 (1 mo ago)

Seamus said:


> That's correct, those that said you can't are wrong. HOWEVER, the car must be titled and registered in your name. People who short term lease Taxis or Hertz rentals for Uber etc.etc. cannot use the standard mileage deduction. You can't use it on a vehicle you don't fix and maintain and in that case must use the actual expense method.


It is under my name. So if i do itemized deduction this year and i get a new car next year and i cannot go back to standard deduction?
Then i should do standard deduction this year.


----------



## painfreepc (Jul 17, 2014)

SlimJim72 said:


> This settles it. I can only do itemized deduction with a leased car.
> 
> My lease ends next June. Total allowed miles = 36000. Current odometer = 22800 miles. So I have plenty of mileage left.
> My next car will be a purchase most likely.
> ...


----------



## Launchpad McQuack (Jan 8, 2019)

SlimJim72 said:


> So if i do itemized deduction this year and i get a new car next year and i cannot go back to standard deduction?


No, once you get a new car you start fresh and can make the decision again. Choosing standard mileage deduction or actual expenses only locks you into the method that you choose for the term of the lease on that vehicle.

Also note that this only applies for a leased vehicle. If you own the vehicle, you can decide each year whether or not to use the standard mileage deduction or actual expenses, *provided that you use the standard mileage deduction the first year that you use the vehicle for business*. If you use actual expenses the first year for a vehicle that you own, then you have to continue to use actual expenses as long as you own the vehicle.


----------



## FLKeys (Dec 27, 2018)

My hand written mileage log always has more miles than the Uber annual report. That was for years where I only did Uber.

Throw doing multiple apps into the mix like Uber and Lyft and then what do you use? Add the two together and it is way over what you drove.

From day 1 I have always kept a detailed written log, I log every stop, mileage, address, description, and activity. If you religiously do it, it is way easier than you think, only had a few PAX question me, and I simply say IRS requires a detailed mileage log. Most of those PAX say very smart, I've never seen a driver do that.

I tried one of those mileage tracking aps, I found for the month I did it, it was short I think 3% from actual miles driven. I can't give up 3% for convenience.


----------

