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!
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.
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!
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.
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.