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Four Quick Tax Tips to lower your Liability

kc2018

Well-Known Member
1) Always do a destination home so you can write-off dead miles if you don't pickup anyone.
2) Write off your home office space on your taxes if you have a computer and work area to support your driving. You will write off the % of total space of house plus % of utilities.
3) Take the mileage deduction on a new car but consider receipt deductions on an older car.
4) Write off any electronic equipment (car camera, etc) and all water, treats, etc. you buy.
 

Merc7186

Well-Known Member
1) Always do a destination home so you can write-off dead miles if you don't pickup anyone.
Except that is a big red flag if you are claiming miles on a day when you have zero income to show for it.
2) Write off your home office space on your taxes if you have a computer and work area to support your driving. You will write off the % of total space of house plus % of utilities.
Except we write off mileage deductions and depreciation, so you cant justify this deduction.
3) Take the mileage deduction on a new car but consider receipt deductions on an older car.
You would need a lot of receipt deductions to overcome your mileage deduction.
4) Write off any electronic equipment (car camera, etc) and all water, treats, etc. you buy
Only an ant would have water and treats but you are on to something here. You can write a percentage of your specific cell phone as a business expense. Not the entire amount but the percentage that it is utilized when the app(s) are running
While I applaud you efforts in helping out the forum, you should know what you are doing before spewing out bad advice.

Or ask an accountant.....I may know a guy.
 

kc2018

Well-Known Member
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  • #3

kc2018

Well-Known Member
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  • #4
I personally would absolutely NOT attempt to write off home office space for rideshare. I don't see any possible way that you could qualify under the rules. Take a look at the instruction booklet for form 8829. Don't see how ridesharing qualifies.

There is good information under the "taxes" forum. Just note "driver beware" there is a lot of misinformation too.
You have to maintain records, miles, tax forms, mapping, research, all kinds of things to support rideshare. I write mine off, with confidence. It's allowed if it is your only office and you use it to support your work. Period.
 

FLKeys

Well-Known Member
I personally would absolutely NOT attempt to write off home office space for rideshare. I don't see any possible way that you could qualify under the IRS rules for deducting home office expenses.

There is good information under the "taxes" forum. Just note "driver beware" there is a lot of misinformation too.
I use my home office to transfer my hand written trip logs into Excel, verify all trips are properly recorded and paid, verify my deposits from rideshare companies are in my bank and proper, scan and record all receipts properly, researching and ordering all supplies, researching tax laws and filing taxes. Plus anything else the rideshare gig requires outside of driving. Why would this not be an acceptable home office write off? I maintain a desk and space specifically for this purpose.
 

kc2018

Well-Known Member
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  • #6
I use my home office to transfer my hand written trip logs into Excel, verify all trips are properly recorded and paid, verify my deposits from rideshare companies are in my bank and proper, scan and record all receipts properly, researching and ordering all supplies, researching tax laws and filing taxes. Plus anything else the rideshare gig requires outside of driving. Why would this not be an acceptable home office write off? I maintain a desk and space specifically for this purpose.
Absolutely. This is exactly what it is for. I have done this for 13 years now. I have been self employed since 2005. As long as you do not have another office to do this work, it is a write off.

If you rent, this deduction is especially helpful because there is no other way to write off your housing expenses (home owners can write off interest)
 

kc2018

Well-Known Member
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  • #7
Honestly, not going to go back and forth with you but it would never stand up in an audit. Must be your primary place of business and used exclusively for your business, not to support your work.

Do what you want.
From IRS site:

Your home office will qualify as your principal place of business if you meet the following requirements.

  • You use it exclusively and regularly for administrative or management activities of your trade or business.

  • You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

====we are self employed, it is a business. You are wrong. Go ahead and overpay. We don't care.

From IRS site:

Your home office will qualify as your principal place of business if you meet the following requirements.

  • You use it exclusively and regularly for administrative or management activities of your trade or business.

  • You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

====we are self employed, it is a business. You are wrong. Go ahead and overpay. We don't care.
And, on part one, it means if you don't run three other businesses there and stream your League of Legends all day.



"home office expenses. Most people don’t think of this one. But as long as you qualify under the tax rules and use a portion of your home regularly and exclusively for your driving business (for example, recordkeeping), you can deduct home office expenses for that portion of your home"
 

FLKeys

Well-Known Member
Honestly, not going to go back and forth with you but it would never stand up in an audit. Must be your primary place of business and used exclusively for your business, not just to support your work.

Do what you want. It's all fun until your first audit!
IRS Publication 587 Page 3&4:
Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
 

kc2018

Well-Known Member
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  • #9
IRS Publication 587 Page 3&4:
Your home office will qualify as your principal place of business if you meet the following requirements. You use it exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
And don't forget the utilities.

So, if it's 10% of your home used for biz, 10% of your utilities also are written off (electric, water, gas, etc)!!

Why let rich people have all the fun?
 

FLKeys

Well-Known Member
Every legal deduction adds up and I try not to miss any. My home use is only 3% but better than nothing. When the kids move out I can turn one of the spare bedrooms into a bigger office and claim 12%
 

kc2018

Well-Known Member
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  • #11
Every legal deduction adds up and I try not to miss any. My home use is only 3% but better than nothing. When the kids move out I can turn one of the spare bedrooms into a bigger office and claim 12%
Nailed it!

I ran a profitable biz out of my house for 7 years so I could live upstairs and work downstairs. I wrote off more than 50% for years. I had pictures to prove it, too.
 

Seamus

Well-Known Member
We are specificly talking about rideshare not other forms of business.

You have left out some of your copy and paste. Here is the relevant part you left out.

In determining whether the office in your home qualifies as your principal place of business, you must consider the following two items.

  • The relative importance of the activities performed at each place where you conduct business, and

  • The amount of time spent at each place where you conduct business.


    This is why I don''t like getting involved in these conversations. If it works for you then do it.
 

kc2018

Well-Known Member
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  • #13
We are specificly talking about rideshare not other forms of business.

You have left out some of your copy and paste. Here is the relevant part you left out.

In determining whether the office in your home qualifies as your principal place of business, you must consider the following two items.

  • The relative importance of the activities performed at each place where you conduct business, and

  • The amount of time spent at each place where you conduct business.


    This is why I don''t like getting involved in these conversations. If it works for you then do it.
Nothing you quoted disputed what we've talked about.

You have to have a place to do the paperwork and everything else involved with working. The gov't knows we have to be able to do these things so this is a routine deduction that anyone who is well informed uses. Do not cower in fear of an audit. You are not doing anything wrong by writing off legitimate business expenses. I have literally taken this deduction every year since 2001 because I've always been outside sales or self-employed.
 

Merc7186

Well-Known Member
...I love to see you in an audit room with all of this.

I sincerely hope that you never get audited because you will be in for a rude awakening if you get someone who knows what they are doing.
 

LAuberX

Well-Known Member
Moderator
So you use the "home office" 100% for Uber/Lyft?

you never pay other bills there?
you never use the computer for other things?
you are never in there except to do Uber tasks?
 

kc2018

Well-Known Member
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  • #16
So you use the "home office" 100% for Uber/Lyft?

you never pay other bills there?
you never use the computer for other things?
you are never in there except to do Uber tasks?
So, if you use your cell phone for ubering and to occasionally watch porn, are you still going to write off your cell phone bill? Real question.

We are creatures of work. We only have these things to support working. We mostly sleep, eat, and work. Of course, you should write off this expense.

Be men, not mice. The gov't does not own you. Quit cowering.
 

LAuberX

Well-Known Member
Moderator
I don't write off my cell phone, or home office. Neither is used 100% for business.

The standard mileage allowance is more than enough to pay zero taxes, keep a log, make entries at the start and end of each shift.
 

kc2018

Well-Known Member
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  • #18
I don't write off my cell phone, or home office. Neither is used 100% for business.

The standard mileage allowance is more than enough to pay zero taxes, keep a log, make entries at the start and end of each shift.
You must get earned income credit. Do you have children you write off? A normal person will still have something left after mileage that hits you under Self employment tax. It's usually inescapable unless you get your income to $0 on the Schedule C


Almost every company in America has employees who use their company cell phones for (sometimes personal) and they write off the whole thing. Quit cowering.
 

LAuberX

Well-Known Member
Moderator
How many years have you had Uber for 100% of your income?

I'm just trying to gauge the depth of experience in your answers.
 

kc2018

Well-Known Member
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  • #20
How many years have you had Uber for 100% of your income?

I'm just trying to gauge the depth of experience in your answers.
Do you have children you write off? You do, right? That is the almost the only way you would have zero tax liability.

The reason is you have to pay self employment taxes (Minimum) on whatever is left on the schedule C. There are only a few things that offset that number and they are mostly credits (like EIC...people with children make a killing on this).

Many people do not qualify for these credits so we have to write off everything legitimate we can on the Schedule C.
 
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