# Mileage, Gas Receipts, LLC?



## here2der (Jul 2, 2018)

Pretty new to Uber and Lyft (just shy of a month). Looking at mining all my past ride history data from Uber and Lyft to find my miles driven (which wouldn't include the distances I had to drive to actually pick the riders up). After doing so, I plan to add the least resource-intensive app that will allow me to start tracking my mileage. I have all the gas receipts from since I started. I am curious on the taxes: will the gas receipts matter, or is it only some sort of verification of the mileage driven that the IRS wants to save me on my taxes? Also, I had a businessman passenger tell me the other day that I needed to start an LLC for driving -- to save on taxes. I do not own a house and therefore am not able to write off the sizable deductions for mortgage payment interest that a lot of people can, so I was thinking an LLC would help me save on taxes.(?) Yay or nay? Thanks for any responses.


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## UberTaxPro (Oct 3, 2014)

here2der said:


> Pretty new to Uber and Lyft (just shy of a month). Looking at mining all my past ride history data from Uber and Lyft to find my miles driven (which wouldn't include the distances I had to drive to actually pick the riders up). After doing so, I plan to add the least resource-intensive app that will allow me to start tracking my mileage. I have all the gas receipts from since I started. I am curious on the taxes: will the gas receipts matter, or is it only some sort of verification of the mileage driven that the IRS wants to save me on my taxes? Also, I had a businessman passenger tell me the other day that I needed to start an LLC for driving -- to save on taxes. I do not own a house and therefore am not able to write off the sizable deductions for mortgage payment interest that a lot of people can, so I was thinking an LLC would help me save on taxes.(?) Yay or nay? Thanks for any responses.


Nay on the LLC for now, you'd have to have upwards of 50K net income for the year before considering an LLC option for tax purposes. Build your ride share business from the foundation up. First you should implement a bookkeeping system so you can monitor your income and tax obligations (if any). You'll need to decide which of the 2 IRS allowable methods for your vehicle expenses you'll use. The importance of your gas receipts will depend on which method you select but it's always good practice to save all receipts.
The decision to go LLC for tax purposes should be based on hard data from your business. To get that data, work on your record keeping. Quickbooks online self employed is very inexpensive and allows you to work remotely with a tax pro and/or bookkeeper if needed. The mileage log will be your BFF come April 15 next year. Start the log today!


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## MikeNY (May 6, 2016)

This post is way more informative then all others I've seen. Plain and simple straightforward.
Thank you


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## FLKeys (Dec 27, 2018)

Also keep in mind in some states, like Florida, if you form an LLC you will also be subject to Florida State Income Tax where without an LLC you are not.

Click on Who Must File: http://floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx


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