1. UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. Sign-up HERE!

Question about milage!

Discussion in 'Taxes' started by Texas4life577, Jan 2, 2017.

  1. Texas4life577

    Texas4life577 Active Member

    Location:
    Texas
    I see from reading a few post that it is recommended to keep a daily log of your milage by writing your odometer readings. But can I use the daily reports that uber sends to us that shows the trip details that includes the milage. Will the IRS give that more credence then daily logs that we kept.
     
    UberTaxPro likes this.
  2. Trafficat

    Trafficat Member

    Location:
    Reno, NV
    IRS probably likes the Uber logs... But the Uber logs don't tell about the times where you are driving around fishing with no pax. I spend more miles fishing than anything else.
     
    UberTaxPro likes this.
  3. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    No, your logs are your first line of defense. The Uber logs could be used to support or deny deductions based on your log. If for example, you claimed mileage deductions for a certain date and your uber logs show you hadn't worked on that day, you would have a problem. In the past the IRS has used things like MVD documents and repair documents to cross check your mileage log for accuracy.
     
  4. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    You're right about them probably liking the Uber logs...they never had those for taxi drivers!
     
  5. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    When i was an indy driver, and got audited, they did ask to see my cabs Odo. Aside from that and my log that's all they had to go on was that and the credit card transactions I had done.

    Most jurisdictions with a TLC require cabbies to keep a log. When i was indy i had no log except my mileage log. But i wasn't permited for any big cities either.
     

  6. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    I think cabbies have to keep logs pretty much everywhere. If the driver is an IC the cab company doesn't usually have to keep any additional records (other than the drivers log) that could be used to verify the driver's logs like Uber records.
     
  7. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    "open" markets that have zero government oversight have actually zero requirements other than commercial insurance. So really it depends on the market. Just like everything else we talk about on the forums
     
    Last edited: Jan 2, 2017
  8. Steveyoungerthanmontana

    Steveyoungerthanmontana Active Member

    Location:
    Los Angeles
    I use MileIQ. It keeps my personal trips and business trips separate. It logs everything and then at the end of the month you put the ride in either business or personal. I did 26,000 miles this year, 16,000 were for UBER and LYFT. 10,000 were personal.
     
  9. Dback2004

    Dback2004 Well-Known Member

    Location:
    Davenport, Iowa
    Driving:
    UberX
    **Disclaimer: I'm not an expert or IRS authority by any means**

    From what I've read the IRS requires actual miles to be documented. Their "example" log includes beginning and ending odometers, but I've not seen anywhere where they require that except for January 1 mileage.
    From https://www.irs.gov/pub/irs-pdf/p463.pdf....
    Transportation Cost of each separate expense. For car expenses, the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year. Date of the expense. For car expenses, the date of the use of the car. Your business destination. Business purpose for the expense.

    So, I only record my actual odometer on Jan 1 of each year since that value has to be put on tax forms.

    As for my mileage logs, I use Uber's "email csv" function on the partner page, run a few Excel macros against it to calculate my on-trip and dead miles (check out http://analystcave.com/excel-calculate-distances-between-addresses/) . The end result is a spreadsheet that has the date/time stamp, Uber Trip ID so I can pull the actual trip if needed (https://partners.uber.com/p3/money/trips/TripIDHere), beginning of trip (which is either my home office or the end of the last fare), fare pickup location, distance from trip beginning to fare pickup, fare dropoff, on-trip mileage, and end trip location (usually blank for next fare, or where i drove to to stage/wait for next fare, or back to my home office).

    I also track business-related non-service miles (going to the carwash, auto service, etc) on a separate spreadsheet along with my other expenses - dashcam parts, vehicle registration, LLC fees to the state, etc.

    So legally speaking this is an estimate which is not allowed by the IRS but I claim it be actual since I don't pay for a GPS-tracking app or actually record mileage after each trip. If I'm audited they've have to prove that it's not actual and I'm only going to provide a printout, not the actual formulas.
     
  10. darkshy77

    darkshy77 Well-Known Member

    Location:
    pasadena
    Uber Only shows miles on a trip.... This year write down the miles for when you start to you get home.
     
    Older Chauffeur likes this.
  11. louvit

    louvit Member

    Location:
    Brandon Fl
    Driving:
    UberXL
    Just because you write it down in a book when you are cruising around for a all will the IRS accept that? Will Uber send a year end statement of call to pick up and pick up to drop off at least? The rest can be estimated...
     
  12. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    Rather than risk having to prove/substantiate your estimate ( my understanding is that the IRS need not prove anything- that's on you ) isn't it simpler to write down the odometer readings at the start and end of each shift? You don't need to break it down by individual trips. That was the way my CPA told me to record mileage 14 years ago. I also supply my odometer readings for the beginning and end of the year so that business vs personal use percentages can be applied.
     
    UberTaxPro likes this.
  13. Dback2004

    Dback2004 Well-Known Member

    Location:
    Davenport, Iowa
    Driving:
    UberX
    I tried recording odo readings for a while, but more often than not I'd forget. Would probably be an easier habit if I drove regularly, but I drive so infrequently that I just forget. I have a reminder set on my phone to go off every NYE now to go write down the odo readings as I would usually forget that too and have to estimate from oil change receipts, etc. Also why I don't use any of the apps, you have to tell it what miles are for business and what are personal. In my case I drive 20K+ miles each year for my regular job but I'm reimbursed by employer for those so can't deduct them. I do the same for them, just use Google Maps to calculate each start/endpoint for work and put on my expense report.

    The per trip reports are a little excessive, but from what I've read, disclaimer still applies, the IRS typically will have to disprove your records as being false, incomplete, or full of errors. My records should be sufficient. Again, only applies if I'm audited...
     
  14. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    The IRS accepted my chicken scratch in a day book as my log for the whole year... with absolutely nothing beyond that. Taxis have been using the same or less documentation for years and the IRS accepts it. What they wont' accept is someone with no log at all who is claiming tens of thousands of miles on sketchy grounds. If they see how much money your bringing in to be full time and they are seeing that you have a log on top of Uber's numbers they won't really have grounds to question your documents.
     
  15. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    THELMA L. MOORE AND WILLIE J. MOORE had a similar chicken scratch log and it wasn't accepted by the IRS like yours was. They took their case to tax court. In the "good old days", the IRS would allow a reasonable deduction, based on the nature of the business, even without a written record. This is no longer the case. The new "old" rule: no contemporaneous record, no deduction. Period. The audit appeals are making their way through the court system now and the courts are siding with the IRS. Read for yourself:
    http://www.ustaxcourt.gov/InOpHistoric/MooreSumm.SUM.WPD.pdf
    GARY ROY submitted a spreadsheet and some notes for his vehicle expenses and claimed that logs weren't needed because he used his vehicle 100% for business. He also was bringing in money but had his vehicle deductions denied by the IRS. He was also hit with a 20% accuracy related penalty amounting to over $4,000. He took the case to tax court in 2016 and the court sided with the IRS and upheld the 20 % accuracy penalty:
    http://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=10968

    The IRS doesn't need grounds to question your documents. Deductions have been ruled by the courts to be "legislative grace" and the taxpayer must meet all substantiation requirements. The only time the burden of proof can be switched to the government is if all substantiation requirements have been met.
     
    Older Chauffeur likes this.
  16. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    By chicken scratch log i had start/end odometer readings for every date i went out working with a total amount in cash/credit revenue generated for the time in question with invoice numbers for the credit card transactions written in the log. I should have kept a fare-fare trip sheet but... yeah i'm too lazy for that.

    The auditor also brought up the point that... because I had 10s of thousands in cash revenue reported so if she was really looking for me cheating, that's infinitely more likely to be where i would cheat...
     
  17. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    And the uber numbers in terms of total miles driven, that is further evidence to substantiate your claim on the number of miles you drove.
     
    UberTaxPro likes this.
  18. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    Or hurt you if you deducted miles on a day you didn't show anything on your Uber records!;)
     
  19. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando
    Driving:
    Taxi
    Well that would be you making stuff up and getting caught. What i'm talking about is honestly filling out a log that shows reality.
     
  20. Buber2005

    Buber2005 Member

    Location:
    Charlotte
    Driving:
    UberX
    Did you guys ever figure out any answer to this? Also, when did mileage start being spelled milage?
     

Share This Page