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Can you use IRS deduction if car isnt registered under your name?

Discussion in 'Taxes' started by JMBF831, Sep 5, 2015.

  1. JMBF831

    JMBF831

    Location:
    California
    Driving:
    UberX
    For example, let's say you use a friend car. Youre listed on the insurance, do you still get to use the IRS deduction rate?
     
  2. JMBF831

    JMBF831

    Location:
    California
    Driving:
    UberX
    Or, for example, you lease a car, but then you don't own it? I'm trying to figure out how this works. My friend wants to start driving for Uber but he is only insured under the car, but it is his dad's. Would he still be able to deduct mileage? I'd say yes, because the vehicle is still experiencing consumption, but not sure how this works exactly. Thanks!
     
  3. StarzykCPA

    StarzykCPA

    Location:
    Portland, ME
    Driving:
    UberX
    You have to own or lease a car in order to use the IRS standard mileage deduction.
     
    JMBF831 likes this.
  4. JMBF831

    JMBF831

    Location:
    California
    Driving:
    UberX
    Thanl you for the reply. So then my buddy would basically track his gas expenses and any other repair costs? Is there an easy to use app to calculate this figure? (Perhaps, for vehicle depreciation)?
     
  5. StarzykCPA

    StarzykCPA

    Location:
    Portland, ME
    Driving:
    UberX
    Yes, you would need to track the actual expenses for the year. As for apps, you can try looking into Everlance, SherpaShare, Drive Companion - I think there are a few more out there. I'm not positive if they include vehicle depreciation though, sorry.
     
  6. Argel

    Argel

    Location:
    Los Angeles
    For actual expenses you still need to track your mileage so you can calculate the biz portion of all your car expenses. So say your buddy drove 80% of the time for Uber and 20% for personal. Your total gas expenses and repair cost times 80% is what's tax deductible. I don't think your buddy can claim depreciation because he doesn't own the car. As for apps, I'm shamelessly self-promoting our app. It's not ready yet but it will be able to automatically track expenses and mileage then pair you up with a certified tax pro who'll help maximize your deductions. Until then, find an expense tracking app that can sync to your bank accounts and track your gas expenses or PM me and we'll help you with your calculations. Good luck!
     
    JMBF831 likes this.
  7. UberTaxPro

    UberTaxPro

    Location:
    CT
    Driving:
    UberX
    I believe one exception would be if the car was titled or leased to your spouse and you file jointly. Correct?
     
  8. StarzykCPA

    StarzykCPA

    Location:
    Portland, ME
    Driving:
    UberX
    That's a good question - I'm not sure. I would think so...
     
  9. makinthemagic

    makinthemagic

    Location:
    NorCal
    Driving:
    UberX
    I would have your buddy agree to lease you the car at a cost of the IRS mileage rate. Document the agreement. Pay your buddy per the agreement. That would be one way to get the mileage rate despite not owning the vehicle. Any fuel you would purchase would be a credit against your lease payment.
     
    Last edited: Oct 8, 2015
  10. JMBF831

    JMBF831

    Location:
    California
    Driving:
    UberX
    Follow up question: Let's say you get added onto the registration, but not until later in the year after you already drove for Uber. Could you use mileage deduction still?
     
  11. makinthemagic

    makinthemagic

    Location:
    NorCal
    Driving:
    UberX
    I don't see any problem using the mileage rate from the date you are added to the title and afterwards. You have to own or lease the vehicle to claim the mileage rate so I don't think you can claim it until that date.
     

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