Expenses vs vehicle types

anteetr

Well-Known Member
Currently 35c a mile on a 10 yo Chrysler beater minivan w 240k on it.

17c gas
1c depreciation
2c insurance
10c maintenance
5c other (parking tolls registration etc)
 

getme2srq

Well-Known Member
For the first quarter of this year I came up with $0.31/mile.

BTW...I do not see federal and state income tax on your list.
 

Jumpin Jim

Well-Known Member
what are you driving?
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you shouldnt actually be paying taxes unless u have zero dead miles
2013 Subaru Impreza. I believe I get occasional 4* due to it being a bit cramped in the back, but it's how I keep expenses low. If I had to do it again I would get an older car like some of you.
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For the first quarter of this year I came up with $0.31/mile.

BTW...I do not see federal and state income tax on your list.
Not sure of your reasoning to include income taxes, if you did pay any. We're talking about cost of operating an asset, no?
 

Uberguy1

Active Member
I don’t know how anyone is paying taxes. We drive too many miles to turn a profit based on irs mileage deduction. What is it 58 cents and we make 73 cents. Less if you’re newer.
 

anteetr

Well-Known Member
I don’t know how anyone is paying taxes. We drive too many miles to turn a profit based on irs mileage deduction. What is it 58 cents and we make 73 cents. Less if you’re newer.

Some of us don’t drive too many miles to profit. I drove 48k miles last year and grossed a good amount more than $28k. I write off everything and there was still a decent amount leftover.
 

bobby747

Well-Known Member
oh you got to pay still if you are earning on plus side..many dont.i do....especiallly if you have no kids to help write down overall taxes...
 

getme2srq

Well-Known Member
Some of us don’t drive too many miles to profit. I drove 48k miles last year and grossed a good amount more than $28k. I write off everything and there was still a decent amount leftover.
Same here.
I only drive part time so my miles are even less than yours.
Last year I drove 11,000 miles and I grossed much more than $6,380 (11000x$.58).

Also, I'm not an accountant and I'm not publishing a P&L.
All I'm trying to do is count all my rideshare earnings and all rideshare expenses, including the taxes due on rideshare profits.

IMHO, If you're not paying taxes because $.58/mile deduction wipes out your profit, you should quit Uber now.
 

Jumpin Jim

Well-Known Member
Same here.
I only drive part time so my miles are even less than yours.
Last year I drove 11,000 miles and I grossed much more than $6,380 (11000x$.58).

Also, I'm not an accountant and I'm not publishing a P&L.
All I'm trying to do is count all my rideshare earnings and all rideshare expenses, including the taxes due on rideshare profits.

IMHO, If you're not paying taxes because $.58/mile deduction wipes out your profit, you should quit Uber now.
Here's a scenario for you - I commute 30 miles every day to my main job. Every day I have the DF on. I'm looking for rides, and I do take the ride requests, but I don't get them every day. So I have a ton of legitimate online miles compared to my actual rideshare income. They are actually very profitable miles because they are literally on my way to/from work. Many here do similar..or used to do similar. This is one reason the recent limits placed on the DF is such a killer.
 

anteetr

Well-Known Member
Here's a scenario for you - I commute 30 miles every day to my main job. Every day I have the DF on. I'm looking for rides, and I do take the ride requests, but I don't get them every day. So I have a ton of legitimate online miles compared to my actual rideshare income. They are actually very profitable miles because they are literally on my way to/from work. Many here do similar..or used to do similar. This is one reason the recent limits placed on the DF is such a killer.

Youre in one of those situations where every dollar you collect is nearly 100% profit for you in reality, but you show a net loss from business for tax purposes. You also most likely write that loss off against your regular job income. Thats a sweet deal! And its completely legit and legal too.

Here’s the catch though: You cant do that more than 3 years in a row, otherwise the IRS will consider your business a “hobby”. That means they’ll most likely disallow all the losses you claimed from your rideshare business and that means you’ll owe taxes, interest, and penalties on all of the business losses you claimed against your W2 income, if not the gross income too. Quit or figure out how to show a net income before that happens.
 

getme2srq

Well-Known Member
Here's a scenario for you - I commute 30 miles every day to my main job. Every day I have the DF on. I'm looking for rides, and I do take the ride requests, but I don't get them every day. So I have a ton of legitimate online miles compared to my actual rideshare income. They are actually very profitable miles because they are literally on my way to/from work. Many here do similar..or used to do similar. This is one reason the recent limits placed on the DF is such a killer.

Not my situation but I get it.

Are you still doing that with DF reduction?
 

Uberguy1

Active Member
Same here.
I only drive part time so my miles are even less than yours.
Last year I drove 11,000 miles and I grossed much more than $6,380 (11000x$.58).



Also, I'm not an accountant and I'm not publishing a P&L.
All I'm trying to do is count all my rideshare earnings and all rideshare expenses, including the taxes due on rideshare profits.

IMHO, If you're not paying taxes because $.58/mile deduction wipes out your profit, you should quit Uber now.


Are you accounting for just paid miles or all miles driven while working?
 

Jumpin Jim

Well-Known Member
Youre in one of those situations where every dollar you collect is nearly 100% profit for you in reality, but you show a net loss from business for tax purposes. You also most likely write that loss off against your regular job income. Thats a sweet deal! And its completely legit and legal too.

Here’s the catch though: You cant do that more than 3 years in a row, otherwise the IRS will consider your business a “hobby”. That means they’ll most likely disallow all the losses you claimed from your rideshare business and that means you’ll owe taxes, interest, and penalties on all of the business losses you claimed against your W2 income, if not the gross income too. Quit or figure out how to show a net income before that happens.
According to what I've learned, you are 100% correct. I also believe it would be very easy to show a $1 profit every third year. What I mean is although I have enough miles to show a loss every year, I don't necessarily have to claim and report all of those miles.
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Not my situation but I get it.

Are you still doing that with DF reduction?
Fortunately for me Uber has not made the DF changes in my area (Lancaster county) as they have in the Phila region.
 
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