Need advice

ituber

New Member
Hello all,
Need advice for following TIA:
1) I am a full time person paying over 20k tax. Thinking to start a second job as an uber part time Fri SAT and Sun.
Will I be able to claim tax from first job for things like depreciation, petrol, car expenses etc
2) I have got a 2016 car 36000 KMs on odo puchased at 25k 2 months ago. Is it worth to use such an expensive car for uber. I mean it's not a Jag but still 25k car for uber is it worth?
I am in Melbourne, VICTORIA

Thank you for your valuable suggestions!
 

Coachman

Well-Known Member
For Uber you file a Schedule C for profit and loss from business. That's where your costs are deducted. It's got nothing to do with your other employment.

Edit: I just noticed you're in Australia. I have no idea how they do taxes there. You should post this on the Australia board.
 

Jack Malarkey

Well-Known Member
Hello all,
Need advice for following TIA:
1) I am a full time person paying over 20k tax. Thinking to start a second job as an uber part time Fri SAT and Sun.
Will I be able to claim tax from first job for things like depreciation, petrol, car expenses etc
The basic answer is that you can claim those expenses to the extent you use the car to earn assessable income including as an Uber driver.

See https://www.drivetax.com.au/tax-deductions-for-uber-drivers/.

Note that you will need to register for and pay GST from the first dollar.

See https://www.ato.gov.au/general/the-sharing-economy-and-tax/ride-sourcing/.
 

U8er

Well-Known Member
Onboarding will take 2 months(DA, Redbook or RWC, ABN/GST) and cost $500~1300(RedBook or RWC: $50~150, DA and health check: $200. Car insurance upgrade to include rideshare: $200~1000 depending on your insurer). If the business portion of your vehicle usage is 50%, you won't be able to claim the expenses much. The earnings from Uber is on top of your existing income, so income tax will be 32.5%+.

Ballpark number: you may make $7~8/hr after GST/income tax/expenses if you drive over weekend nights. Don't be misled by $35-40/hr payment. You are in charge of all the taxes and costs. Worth it?

Struggling to pay the mortgage and need extra $$$? If you have a background in IT, start from your comfort zone, such as e-whoring. Flexibility and tax free! Lol
 

Apollo

Well-Known Member
Hello all,
Need advice for following TIA:
1) I am a full time person paying over 20k tax. Thinking to start a second job as an uber part time Fri SAT and Sun.
Will I be able to claim tax from first job for things like depreciation, petrol, car expenses etc
2) I have got a 2016 car 36000 KMs on odo puchased at 25k 2 months ago. Is it worth to use such an expensive car for uber. I mean it's not a Jag but still 25k car for uber is it worth?
I am in Melbourne, VICTORIA

Thank you for your valuable suggestions!
Are you serious? :eek: My buddy Neil says 'don't do it' :sneaky:
 

ituber

New Member
  • Thread Starter Thread Starter
  • #8
Which car is it? How much do you expect to earn?
Which car is it? How much do you expect to earn?
I got a Honda Civic 10th Generation, modified to a Type R beast?. I am not expecting an awful lot of money to make. Honestly speaking after sending like half a grand if I won't feel comfortable driving, I won't bother. Money is one thing but I am more about trying something new. I love to drive my beast so thought of uber. Thanks again!
 

ghrdrd

Well-Known Member
Hello all,
Need advice for following TIA:
1) I am a full time person paying over 20k tax. Thinking to start a second job as an uber part time Fri SAT and Sun.
Will I be able to claim tax from first job for things like depreciation, petrol, car expenses etc
2) I have got a 2016 car 36000 KMs on odo puchased at 25k 2 months ago. Is it worth to use such an expensive car for uber. I mean it's not a Jag but still 25k car for uber is it worth?
I am in Melbourne, VICTORIA

Thank you for your valuable suggestions!
Worth it. Now you claim 0% car expenses + depreciation + home office.
Even if you do Uber 50% kms, that's 50% of car costs + depreciation + 10-25% home office you claim.
Yes the income might bump you into a higher tax bracket, maybe.
But if you write everything off, that will be mitigated.
You will be able to claim a bunch of other things - home office: rent/mortgage, utilities, internet, 24 packs of water (that you can onsell on ebay), boxes of wet wipes (that you can also onsell). And don't forget the garage to store the car, new vacuum, water out the hose to wash the car, new hose at Bunnings, etc, etc.
You can even claim such goodies as a new desk, new computer, printer, subscriptions to industry magazines, newspaper purchases (for your pax on the weekend). The list goes on....
And most important, you'll be providing a factastic service to the community on Fri + Sat nights - getting drunks home safely.
Ultimately, that's what we all do it for... the feel good factor.
 

nozm212

Well-Known Member
Hello all,
Need advice for following TIA:
1) I am a full time person paying over 20k tax. Thinking to start a second job as an uber part time Fri SAT and Sun.
Will I be able to claim tax from first job for things like depreciation, petrol, car expenses etc
2) I have got a 2016 car 36000 KMs on odo puchased at 25k 2 months ago. Is it worth to use such an expensive car for uber. I mean it's not a Jag but still 25k car for uber is it worth?
I am in Melbourne, VICTORIA

Thank you for your valuable suggestions!
You dont do uber in the car you love so much. It will be ruined.
 

DannyM

Active Member
For Uber you file a Schedule C for profit and loss from business. That's where your costs are deducted. It's got nothing to do with your other employment.

Edit: I just noticed you're in Australia. I have no idea how they do taxes there. You should post this on the Australia board.
Wrong. If you declare income on your business on Schedule C, you pay extra tax base on your PAYG marginal rate. By the same token, if you declare a loss on your business, your PAYG tax will be reduced since your taxable income is reduce due to the business loss.???
 

Jack Malarkey

Well-Known Member
Wrong. If you declare income on your business on Schedule C, you pay extra tax base on your PAYG marginal rate. By the same token, if you declare a loss on your business, your PAYG tax will be reduced since your taxable income is reduce due to the business loss.???
@Coachman is in the United States and was referring to the United States Schedule C.

At that stage, the original post was located in the general forums and Coachman initially didn’t realise that @ituber came from Australia.

See the last paragraph of Coachman’s post.
 
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Subaru_X

Well-Known Member
Wrong. If you declare income on your business on Schedule C, you pay extra tax base on your PAYG marginal rate. By the same token, if you declare a loss on your business, your PAYG tax will be reduced since your taxable income is reduce due to the business loss.???

I can confirm this is true. During FY 17-18, I paid nearly 10 grand in taxes and then got nearly all of it back after I posted my significant Uber tax loss.
 

Subaru_X

Well-Known Member
Hello all,
Need advice for following TIA:
1) I am a full time person paying over 20k tax. Thinking to start a second job as an uber part time Fri SAT and Sun.
Will I be able to claim tax from first job for things like depreciation, petrol, car expenses etc
2) I have got a 2016 car 36000 KMs on odo puchased at 25k 2 months ago. Is it worth to use such an expensive car for uber. I mean it's not a Jag but still 25k car for uber is it worth?
I am in Melbourne, VICTORIA

Thank you for your valuable suggestions!

Hello @ituber, To answer your questions directly:

1) When you drive Uber you won't claim deductions from your first job. In your tax return you will enter separate income and expense details for your rideshare activity. If you do it right, as a part time driver you will submit a significant tax loss (i.e your taxable income from Uber will be negative in the thousands of dollars) The business tax loss amount will result in your overall taxable income decreasing, which will result in an increased tax refund.

2) I drive a Subaru Liberty which I bought for $32,000. I look after it and keep it sparkling clean - it works well for rideshare. Since you are planning to do this part time, you shouldn't worry too much about your car. If you take a look at the tax guide in my signature you can get information about how you can claim depreciation of your car in tax returns.
 

andyxc

Well-Known Member
Hello @ituber, To answer your questions directly:

1) When you drive Uber you won't claim deductions from your first job. In your tax return you will enter separate income and expense details for your rideshare activity. If you do it right, as a part time driver you will submit a significant tax loss (i.e your taxable income from Uber will be negative in the thousands of dollars) The business tax loss amount will result in your overall taxable income decreasing, which will result in an increased tax refund.
Just curious. I know the ATO will start looking into it more if you continuously lose money. But for a PT driver who has a normal income and still ends up paying some tax but less due to losing money. Will that ever raise any suspicion after a couple of years?
 

Jack Malarkey

Well-Known Member
You need to be careful to ensure that the non-commercial loss rules don’t prevent you from offsetting a loss against other income. This risk arises where the assessable income (ie, gross income) from the business is less than $20,000 for the relevant income year.

If the non-commercial loss rules apply, the loss is quarantined and applied against the business income of future years.

The risk of the non-commercial loss rules applying is higher for a part-time driver as they are more likely to have relevant assessable income under $20,000.

For more information about the non-commercial loss rules, see https://www.ato.gov.au/Business/Non-commercial-losses/.
 

zanboor

Well-Known Member
There is nothing suspicious or dodgy about a well-documented tax loss.

Claiming depreciation, home office expenses, maintenance, insurance and all other expenses which reduce my taxable income to zero or minus x thousand is not sneaky, it's an entitlement. It's all documented on the ATO website.

Here is a simple life hack for sole traders.

All self contributions you make to your superannuation are 100% tax deductible up to $5,000. All contributions you make above $5,000 are 75% deductible.

As a sole trader you never need to pay tax!
Only if I made enough to set aside for super :frown:
 

Subaru_X

Well-Known Member
You need to be careful to ensure that the non-commercial loss rules don’t prevent you from offsetting a loss against other income. This risk arises where the assessable income (ie, gross income) from the business is less than $20,000 for the relevant income year.

If the non-commercial loss rules apply, the loss is quarantined and applied against the business income of future years.

The risk of the non-commercial loss rules applying is higher for a part-time driver as they are more likely to have relevant assessable income under $20,000.

For more information about the non-commercial loss rules, see https://www.ato.gov.au/Business/Non-commercial-losses/.
This is very good advice - I was unaware of this! I looked at the link and it's important to note that the assessable income must be $20k or more exclusive of GST
Post automatically merged:

@Jack Malarkey I dare say that this paragraph will make a difference for many (not all) part timers:

Screen Shot 2019-07-14 at 7.19.50 pm.png
 
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