# Do you include mileage in taxes if your part time?



## aarondavid1010 (May 14, 2018)

say under the 9500 dollar mark. Wont you do better claming everything else in that scenario?


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## Cableguynoe (Feb 14, 2017)

aarondavid1010 said:


> say under the 9500 dollar mark. Wont you do better claming everything else in that scenario?


What's everything else?

How many miles are we talking about?

You want advice but give us nothing to work with.


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## Las Vegas Dude (Sep 3, 2018)

If you don’t do mileage you have to keep track of all your expenses. You would then have to figure what % you use the car for rideshare. So if your total mileage for the year was 20k and you used your car for rideshare 5k miles you could only count 25% of the expenses(gas, repairs, oil changes, ect.) In the example by going by mileage you would have 2700 in deductions. I doubt you would be close to that with 25% of actual expenses.


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## aarondavid1010 (May 14, 2018)

Cableguynoe said:


> What's everything else?
> 
> How many miles are we talking about?
> 
> You want advice but give us nothing to work with.


im saying theres a point where your other expenses will exceed your miles



Las Vegas Dude said:


> If you don't do mileage you have to keep track of all your expenses. You would then have to figure what % you use the car for rideshare. So if your total mileage for the year was 20k and you used your car for rideshare 5k miles you could only count 25% of the expenses(gas, repairs, oil changes, ect.) In the example by going by mileage you would have 2700 in deductions. I doubt you would be close to that with 25% of actual expenses.


sorry new to this. If you dont claim your miles then you claim 100% of your other expenses right? so with part time gas will exceed miles easy yes?


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## Las Vegas Dude (Sep 3, 2018)

Well if you only use the car for rideshare then you can count 100% of expenses. If you use it to and from a regular job and personal then you have to keep track of your rideshare mileage and then use that % of the expenses on your taxes. You can’t count all your gas for personal use as a business expense.


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## Cableguynoe (Feb 14, 2017)

aarondavid1010 said:


> im saying theres a point where your other expenses will exceed your miles


You're right. 
But how do you know where that point is?

Without actual stats no one knows.


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## Las Vegas Dude (Sep 3, 2018)

So for 9500 bucks let’s say you average $1.00 per mile. So you put 9500 miles on your car for rideshare. By mileage you would have $5130 in tax deductions. By expenses gas for 9500 miles on a car that got an average of 25 miles per gallon at $3.00 a gallon would be $1164, then you would have 3 oil changes at say 30 bucks each, so another $90 there. See how slowly it adds up by actual expenses. For 9500 miles you would need at least $5130 to make it worth doing actual expenses but like I said you have to add up all your expenses and then figure out what % of your total mileage for the year was rideshare miles then figure out the amount that % is in dollars then see if it’s more than what your mileage deduction would be.


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## NCHeel (Jan 5, 2017)

I don't see any scenario where the actual deductions will ever exceed 51.5 cents per mile (or whatever the number is this year) while doing Uber. Unless you are an LLC and the car is solely rideshare and you use the payments or you have to put a motor in it or something. But then again what do must of us know about Canadian tax structure?


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## Amsoil Uber Connect (Jan 14, 2015)

Well your in Canada, although I have heard Canada's tax code is based off the US code. You'll have to figured out which one works for you.


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## Las Vegas Dude (Sep 3, 2018)

I didn’t realize he was in Canada, you are right there laws are probably different.


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## SEAL Team 5 (Dec 19, 2015)

aarondavid1010 said:


> say under the 9500 dollar mark. Wont you do better claming everything else in that scenario?


It depends what % you use your vehicle for rideshare compared to personal use.


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## SamuelB (Aug 29, 2018)

The first year you put your car in service for business you have to choose to do actual expenses or standard mileage deduction (SMD). If you go with actual expenses you will only be allowed to use actual expenses from that point on for subsequent years. If you do SMD you can switch back and forth for future years.
To know which is best just keep track of your actual expenses. Remember you have to determine what % your car was used for business and that is the % of actual expenses you can deduct. Compare that against the SMD and use whichever is more. Remember, if this is your first year and you happen to have a lot of expenses that actually exceed the SMD, you may not have that in future years but you are stuck with using actual expense deduction.


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## SEAL Team 5 (Dec 19, 2015)

NCHeel said:


> I don't see any scenario where the actual deductions will ever exceed 51.5 cents per mile (or whatever the number is this year) while doing Uber.


Easy scenario. Buy a brand new $30k car. Finance for 24 months, full coverage insurance, gas, tires, oil changes, car washes, bi annual details,

$9500/year revenue is $800/month and
1600 monthly miles of rideshare. That comes out to roughly $810/month in IRS deductible miles.

*MONTHLY COST*
car payment...................................$1,000
insurance..........................................$100
gas (based on 3000 miles)...............$250
car washes/detail...............................$60
tires, oil changes................................$80

The above scenario would be more beneficial to use actual costs as a deduction rather than the IRS SMR so long as the owner does not drive more than 1400 personal miles per month to be combined with the 1600 rideshare miles per month.


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## Pax Collector (Feb 18, 2018)

aarondavid1010 You can still use the standard deduction of 54.5 cents per mile regardless of how much you grossed above $400. If your deductions exceed your gross income, you declare a loss. The IRS will believe you. Just make sure you have mileage logs to back your claim.


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## Merc7186 (Jul 8, 2017)

I hope that this isnt another thread where you ask a question then want to argue with everyone again.

The amount of expenses it would take to outweigh your mileage is almost impossible to achieve and youre required to have receipts to back them all up.

Ex: You drove only 100 miles last year but somehow spent over $70 in expenses for your earnings. It would be very hard to prove that these were actual business expenses and people that tend to do this are more likely to be audited than people taking the standard mileage deductions.


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## ColumbusRides (Nov 10, 2018)

Give it to the accountant


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## steveK2016 (Jul 31, 2016)

aarondavid1010 said:


> im saying theres a point where your other expenses will exceed your miles
> 
> sorry new to this. If you dont claim your miles then you claim 100% of your other expenses right? so with part time gas will exceed miles easy yes?


Unless your car is breaking down every month, requiring massive repairs every time, mileage will always exceed actual costs.


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## AuxCordBoston (Dec 3, 2016)

aarondavid1010 said:


> say under the 9500 dollar mark. Wont you do better claming everything else in that scenario?


Canada has different rules. US tax advice won't help.


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## Juggalo9er (Dec 7, 2017)

Example of other expenses exceeding standards deduction
Car repairs
Gas
Amenities (for me, not pax)
Car washes


In my case I do my own car repairs, bill myself for my time, itemize deductions 
And screw the IRS

Yes it's legal


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## DustyToad (Jan 10, 2018)

I don’t know if it’s been said yet. 

If you choose the standard mileage deduction you don’t just deduct the miles you drove while riders were in your car. 
You also include all the miles you drove to pickup your rider and the miles you drive back from a long ride. 
All mileage from the time you turn on the rideshare app until you turn them off is all deductible (in the US). 

Some people don’t know this and screw themselves from about 50% of the miles they could deduct.


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## SEAL Team 5 (Dec 19, 2015)

Juggalo9er said:


> In my case I do my own car repairs, bill myself for my time, itemize deductions
> And screw the IRS
> 
> Yes it's legal


*YOU WHAT????????
*
So, if you bill yourself for your time and deduct it as an expense then do you claim that paid time as revenue in another self employed car repair business?

Where in the hell do you get your tax advice from?

Personal time is *NEVER *a deductible expense.



Juggalo9er said:


> Example of other expenses exceeding standards deduction
> Car repairs
> Gas
> Amenities (for me, not pax)
> Car washes


Huh???

You deduct gas, car repairs and car washes on top of the IRS SMR?


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## Juggalo9er (Dec 7, 2017)

SEAL Team 5 said:


> *YOU WHAT????????
> *
> So, if you bill yourself for your time and deduct it as an expense then do you claim that paid time as revenue in another self employed car repair business?
> 
> ...


I itemize 
And I deduct the standard time for doing a job, based mechanics estimate book.... feel free to call the IRS, I did, its allowed


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## SEAL Team 5 (Dec 19, 2015)

Juggalo9er said:


> I itemize
> And I deduct the standard time for doing a job, based mechanics estimate book.... feel free to call the IRS, I did, its allowed


You should find a better tax accountant. Only the parts and a percentage of personal tool depreciation are deductible. There's no deduction for your labor.

If you drive your car 50 percent of the time for business, you can deduct 50 percent of the repair costs. The remaining costs is a non-deductible personal expense. You may deduct the cost of parts and depreciate the cost of tools if you fix the car yourself. But, there's no deduction for your labor.


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## Juggalo9er (Dec 7, 2017)

SEAL Team 5 said:


> You should find a better tax accountant. Only the parts and a percentage of personal tool depreciation are deductible. There's no deduction for your labor.
> 
> If you drive your car 50 percent of the time for business, you can deduct 50 percent of the repair costs. The remaining costs is a non-deductible personal expense. You may deduct the cost of parts and depreciate the cost of tools if you fix the car yourself. But, there's no deduction for your labor.


That's completely contrary to what I was told... ii'm not saying you are wrong at all


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## SEAL Team 5 (Dec 19, 2015)

Juggalo9er said:


> That's completely contrary to what I was told...


Yea, and so was "Make great money....Be your own boss...."


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## JK7 (Jul 4, 2018)

DustyToad said:


> I don't know if it's been said yet.
> 
> If you choose the standard mileage deduction you don't just deduct the miles you drove while riders were in your car.
> You also include all the miles you drove to pickup your rider and the miles you drive back from a long ride.
> ...


Sorry for hi-jacking this thread with a side question. I just want to be clear on what you are saying (I am still pretty new at this). The minute I go online for Uber, if I am driving, then those miles can be deducted? What if I drive around for 40 minutes, do 10 miles, and never do a ride during that time. . . that 10 miles is still deductible?


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## Juggalo9er (Dec 7, 2017)

JK7 said:


> Sorry for hi-jacking this thread with a side question. I just want to be clear on what you are saying (I am still pretty new at this). The minute I go online for Uber, if I am driving, then those miles can be deducted? What if I drive around for 40 minutes, do 10 miles, and never do a ride during that time. . . that 10 miles is still deductible?


Yes


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## Skinny1 (Sep 24, 2015)

SEAL Team 5 said:


> Easy scenario. Buy a brand new $30k car. Finance for 24 months, full coverage insurance, gas, tires, oil changes, car washes, bi annual details,
> 
> $9500/year revenue is $800/month and
> 1600 monthly miles of rideshare. That comes out to roughly $810/month in IRS deductible miles.
> ...


You mean car payment (aka depriciation unless lease). First 2-3 years it looks great until year 4,5,6 when it's maxed at $5.5k for those years.... then you are screwed.

I've run the numbers time and time again, looks like SMR is better unless SUV and 179... then fully deduct and get your $700 in gas per month written off.


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

SEAL Team 5 said:


> You should find a better tax accountant. Only the parts and a percentage of personal tool depreciation are deductible. There's no deduction for your labor.
> 
> If you drive your car 50 percent of the time for business, you can deduct 50 percent of the repair costs. The remaining costs is a non-deductible personal expense. You may deduct the cost of parts and depreciate the cost of tools if you fix the car yourself. But, there's no deduction for your labor.


Your infinity better off writing off your miles doing the work yourself to save money...

Throughout a car's usable operating life you can write off at least $110,000 in expenses, maybe even as much as $150,000 if your car makes it 300K miles.

That's enough write offs to pay for commercial taxi insurance a NEW CAR gas, and dealer prices for repair/maintenance.

Because business miles are business miles... it doesn't matter HOW your car is maintained, you get the same deduction from the IRS.

You could use salvage parts, monkey repairman... Unicorn magic (something i wish I was better at)

Whether it costs you $5.00 in labor or you use unicorn magic to unrust a part... you'll get the SAME deduction off the miles.


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