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Four Quick Tax Tips to lower your Liability

LAuberX

Well-Known Member
Moderator
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.
I'm not seeing the answer to my question here.

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

kc2018

Well-Known Member
  • Thread Starter Thread Starter
  • #22
I'm not seeing the answer to my question here.

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

Seamus

Well-Known Member
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.


OMG you baited me into one more reply.

First I agree with everything has to say. You are reading into what you want to. Regarding home office expense the expert you keep quoting very specifically said:
" But as long as you qualify under the tax rules" He didn't say you qualified, see the difference?

You can always tell when someone doesn't have facts on their side when they start with the personal insults. I don't cower to the IRS and have no need to "man up". I have survived 3 audits in the last 38 years and have no "cowering" in fear. That has nothing to do with it rideshare schedule c income is the least of my issues.

Last, you could easily put this issue to rest by consulting a tax professional or CPA. They can review your Rideshare business and give you professional advice.

My last word on the matter is you will literally have a zero chance of justifying your home office deduction for a rideshare business in an audit.

Good Luck.

I'm not seeing the answer to my question here.
How many years have you filed taxes with Uber as 100% of your income??.
The fact he won't answer tells you all you need to know
 

FLKeys

Well-Known Member
I'm not seeing the answer to my question here.

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

LAuberX

Well-Known Member
Moderator
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?
 

SamuelB

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

FLKeys

Well-Known Member
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?

I Can't wait for your article how to make money driving!
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.
 

UberTaxPro

Well-Known Member
Sponsor
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.
 
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