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Four Quick Tax Tips to lower your Liability

Discussion in 'Taxes' started by kc2018, Jan 10, 2019.

  1. LAuberX

    LAuberX Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    I'm not seeing the answer to my question here.

    How many years have you filed taxes with Uber as 100% of your income??
     
  2. kc2018

    kc2018

    Location:
    las vegas, nv
    Look, you are trying to short circuit a valid argument with a non-sequiter.

    So far, you mentioned that people won't owe any taxes because mileage is a large enough write-off. That is not true.


    I will add (to be more specific). If a person only drives one month a year.....do not take this write-off. I am talking about people who drive full time or earn the majority of their income from rideshare.

    Thanks for discussing the matter. We will agree to disagree. My arguments stand because I have researched this matter at length.
     
  3. Seamus

    Seamus

    Location:
    New York
    Driving:
    UberX
    The fact he won't answer tells you all you need to know
     
    LAuberX likes this.
  4. FLKeys

    FLKeys

    Location:
    FL Keys
    Driving:
    UberX
    Does it matter if Uber is 1% or 100% of your/my/his income?

    These two bullet points from the IRS Publication is all that matters.
    • You use it exclusively and regularly for administrative or management activities of your trade or business. (I have a small area set aside in my house that I use exclusively for rideshare activities and use it every day that I drive.)

    • You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. (My car is not a fixed location and I can not do my administrative activities in it. Driving and picking people up is not administrative activities. Keeping my logs and other paperwork is administrative activities.)
    I get that some people think this is a red flag for an audit, so what, audit me, I am 100% legit and all the records I need to stand up to an audit are in my HOME OFFICE. That is why I show a profit doing rideshare and why I take every deduction I can. If you don't show a profit chances are you are faking your mileage logs to off set all income or you are just poorly managing your driving time in which case why would you bother driving in the first place if you are not making a profit.
     
    kc2018 likes this.
  5. LAuberX

    LAuberX Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    I'm fairly certain nobody has a home office for rideshare thay use 100% for rideshare.(that is the IRS test, 100% business use)

    Just like I'm certain no one has a computer they use 100% for rideshare.

    No one has a cell phone they use 100% for rideshare (unless they have separate accounts and phone numbers)

    I'm sure it's market dependent but in Los Angeles there are plenty of dead miles to offset the low rates paid for paid miles.

    I'm guessing you haven't had 100% rideshare income and tax returns for a number of years to base this information on?
     
  6. You write off the % you use your phone for business. I plan on writing off 75% of my cell phone bill. iPhone now has a screen time report that it notifies you of once a week. I screencap that to show my business apps are the majority of my phone use.
     
  7. FLKeys

    FLKeys

    Location:
    FL Keys
    Driving:
    UberX
    Well I have an office area that is used for rideshare only. It is not a huge area but it is there, it represents 3% of my floor space and yes all I do in it is my rideshare record keeping. It is not hard to set up especially if you have a little unused space in your house. It does not need to be a separate room locked off. A simple file cabinet, desk and chair in the corner of a room is all that is needed.

    No where does it say you have to have a computer exclusive to rideshare. I use my laptop and carry it in there to do so. I'm not claiming my laptop I'm claiming my home office space.

    I don't have enough dead miles to write off my income, if I did I don't think it would benefit me enough to continue doing rideshare.

    I don't have 100% rideshare income and numbers of years, it has nothing to do with what you can legally claim. Find a good CPA that specializes in self employeed income tax and ask.
     
    Skinny1 likes this.
  8. UberTaxPro

    UberTaxPro

    Location:
    CT
    Driving:
    UberX
    A home office is a viable option for a ride-share business that conducts itself as a business (keeps books,files taxes etc...). It will give you another schedule c deduction and make all business trips to and from that office a "business expense". Anyone electing to use the home office deduction should be aware however that if they use the "regular" home office deduction method the depreciation taken will be subject to "recapture" when the house is sold. This can be an unpleasant surprise if not prepared. You can still get the deduction benefit without the recapture issue by using the "simplified method" under revenue procedure 2013-13.

    To qualify for the EIC one has to have at least $1 earned income. If you lower your earned income below 0 with schedule c deductions you will not qualify for the EIC.
     
    kc2018, LAuberX and FLKeys like this.

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