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2018 Rideshare Net Profit/Loss

mmn

Active Member
Just did a 1st cut at my 2018 rideshare financial performance.

Driving Uber and lyft for about a month and a half, on earnings of $2279.21 (tips included), with -$311.90 in deductible expenses and -$2070.58 in mileage, I have a net loss of $103.27.

Awesome!

Anyone else care to share?
 

mmn

Active Member
  • Thread Starter Thread Starter
  • #3
If you are taking mileage what are your deductible expenses? Haven't done mine yet but expect a slight profit.
Products, services, and other expenses used in conducting your business.

I'm not a tax pro so can't advise you on specifics.
 

JC17

Active Member
If you are taking mileage what are your deductible expenses? Haven't done mine yet but expect a slight profit.
Turbo tax has a section in addition to mileage which includes cell phone bill refreshments a portion of insurerence cell phone chargers just a few off the top of my head according to turbo tax made 1200 last year only drove 7000 miles
 

FLKeys

Well-Known Member
I turned a profit using Standard Mileage for all miles truly driven and the deductions I can legally take.
My Mileage deduction is $7,818.57 - Tolls $102.95 - Misc deductions $772.58. That was basically 6 months of driving.

If you are taking mileage what are your deductible expenses? Haven't done mine yet but expect a slight profit.
If you bought anything for rideshare only it is 100% deductible. Like I bough some cheap barf bags, a multi device car charger, emergency cleaning supplies etc. Items that you bought for the vehicle to enhance your passenger experience and or save your vehicle from wear are deductible based on percent of vehicle use. XM Radio, Car seat covers, floor mats, and if you have an auto loan interest paid.
 

Merc7186

Well-Known Member
I will say that the more 'business expenses' that you claim on top of your mileage, the most likely you are to be audited.

...and Yes, I am an accountant.
 

AlteredBeast

Well-Known Member
Actually being a w-2 person, one wants a loss as much as possible from ride-share. As it will lower your taxable amount from w-2 earnings. Which could lead to a bigger refund.
Sorry, I wasn't clear, but I meant "profit" as the joke. Between mileage and write-offs, I am hoping for as low as possible!
 

mmn

Active Member
  • Thread Starter Thread Starter
  • #11
Actually being a w-2 person, one wants a loss as much as possible from ride-share. As it will lower your taxable amount from w-2 earnings. Which could lead to a bigger refund.
I don't see how you do this. You enter mileage on Schedule C and it's an expense associated with the business of driving rideshare.

The W2 shows income as an employee. The rideshare miles have nothing to do with the performance of that job.
 

AlteredBeast

Well-Known Member
I don't see how you do this. You enter mileage on Schedule C and it's an expense associated with the business of driving rideshare.

The W2 shows income as an employee. The rideshare miles have nothing to do with the performance of that job.
Your total income regardless of sources is what determines your actual tax liability. Having more to write of is always a good thing. Better still if your expenses outweigh your w2 income to the point of improving your return, rather than diminishing it.
 

mmn

Active Member
  • Thread Starter Thread Starter
  • #13
Your total income regardless of sources is what determines your actual tax liability. Having more to write of is always a good thing. Better still if your expenses outweigh your w2 income to the point of improving your return, rather than diminishing it.
By that logic one could say if he drove 100 miles in a day while online looking for rides but got none, i.e no rideshare income for that day, that those miles are still deductible since he had other income.

Not buying it, and I'm pretty sure the IRS wouldn't either.

However, if you had non-reimbursed miles, tolls, fees, etc. associated with your W2 job, then those would be deductible against that income.

It really only makes a difference if your Schedule C losses exceed your Schedule C income. My take is if they do, you don't get to apply that to other income not associated with the loss.

Aisb, wish a tax pro would weigh in here.
 

grayspinner

Well-Known Member
You can deduct all mileage that you incur when the app is on whether you have a pax or not

If your business expenses exceed your revenue, you have a loss.

Your individual tax liability comes from totalling up all profits & losses from all sources of income.

Taking a loss for ridesharing lowers your total tax liability if you have other sources of income. This is one of the main benefits to doing this

Note - a tax loss is different than a profit loss. You can have an actual profit and still take a tax loss if your costs per mile of your car are less than the irs standard mileage deduction.
 

Amsoil Uber Connect

Well-Known Member
Just make sure you keep a mileage log, for when the app is on.

And to throw another monkey wrench in the thought process, Yes you can deduct the Booking Fees as well.

I know , I know, there is a big debate about that. But I had a CPA do mine and he agreed. Then later on I had another as a pax and even they agreed, so I'm rolling with that. And now that the Booking Fees here are $3.30 per trip. That is a HUGE deduction.
 

grayspinner

Well-Known Member
Just make sure you keep a mileage log, for when the app is on.

And to throw another monkey wrench in the thought process, Yes you can deduct the Booking Fees as well.

I know , I know, there is a big debate about that. But I had a CPA do mine and he agreed. Then later on I had another as a pax and even they agreed, so I'm rolling with that. And now that the Booking Fees here are $3.30 per trip. That is a HUGE deduction.
No debate, of COURSE you can deduct the booking fee & tolls & airport fees & the uber/lyft service fee - those are expenses you pay out to uber & lyft, not income.
 

AlteredBeast

Well-Known Member
What are the booking fees you guys are speaking of? I haven't seen anything like that on my statements or rides that I can tell.
 

grayspinner

Well-Known Member
What are the booking fees you guys are speaking of? I haven't seen anything like that on my statements or rides that I can tell.

It's part of the fare that uber keeps.

When you get your 1099, it'll be for the entire fare uber collected from the pax - then you'll have to deduct the fees from that amount.
 

AlteredBeast

Well-Known Member
oh, well yeah, if they issue you a 1099 like that, then of course you would have to deduct the fees from it. I thought that Uber/Lyft would just issue a 1099 showing what you were actually paid. Does Lyft do the breakdown for you anywhere else, or do you have to go one by one on each ride?
 

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