RI-ouch!

tmwes

Member
Saturday night I was working New London county..after a drop off in Stonington, I get pinged to Pawcatuck right on the border; on my way there the pax texts that they are actually across the river in Westerly if that's OK. It is literally yards from the original pickup spot, so I say no problem.

Turns out there are no drivers in that part of RI on a Saturday night..in order to get a ride they have to place the pin in CT to get picked up. So I dropped them off and started to head back to CT, when I get a ping for Misquamicut. Since it is a little after 11, I figure I'll do one more fare here before heading back...turns out it is a woman who locked her keys in her car and needed to get to TF Greene before the Enterprise counter closed at midnight (we barely made it). A nice 45 mile ride.

HOWEVER, for those of you that don't know...RI rates are terrible. $0.80 a mile. I didn't realize that before deciding to accept the fare (in retrospect, the woman would have been stranded so I'm OK with it in this situation). So for those of you working the SE corner, be aware should you be sucked into RI.

Even worse is I was wiped after dropping her off, so I turned off the app and drove home the back way, not 95. Had I left the app on and gone on 95, I would have hit some large surges in NL county that went from Mystic (3x) to downtown NL (2x). Oh well. Hopefully some of you made out on that action.
 

Garyk69

New Member
When I average two miles for every mile on paid and the government says it cost me $0.54 a mile drive my car how can I write off more than I paid. I'm allowed to write off my dead miles... it doesn't make sense that it cost you $1.08 to get paid $0.80... you're losing $0.28 for every mile you're paid for. Why would anyone drive under those conditions. In my market in Seattle it's a dollar 35 a mile so I'm making $0.31 a mile plus $0.20 a minute so I'm actually coming out ahead in the long run but not a ton
 

mark edwards

Active Member
What drivers at $1.10 or below are doing are transferring equity in their vehicle to themselves. They get cash flow but really earn nothing, or very little per hour, while the value of their vehicle goes down, and cost to repair it increases. Uber is using you.
 

John shot

Member
When I average two miles for every mile on paid and the government says it cost me $0.54 a mile drive my car how can I write off more than I paid. I'm allowed to write off my dead miles... it doesn't make sense that it cost you $1.08 to get paid $0.80... you're losing $0.28 for every mile you're paid for. Why would anyone drive under those conditions. In my market in Seattle it's a dollar 35 a mile so I'm making $0.31 a mile plus $0.20 a minute so I'm actually coming out ahead in the long run but not a ton
 

Atom guy

Well-Known Member
So according to your math, no one is responsible to pay taxes working for uber?
It's not that you are not responsible for paying taxes, but by the time you take the standard mileage deduction and whatever else you can deduct as an independent contractor, you are not going to show any taxable income, so you will end up not paying taxes.

Rough example: I bring in about $450 a week, so $23,400 a year. I drive 1000 miles a week, or 52,000 a year. 52,000 x .$575 = $29,900 mileage deduction.
 
It's not that you are not responsible for paying taxes, but by the time you take the standard mileage deduction and whatever else you can deduct as an independent contractor, you are not going to show any taxable income, so you will end up not paying taxes.

Rough example: I bring in about $450 a week, so $23,400 a year. I drive 1000 miles a week, or 52,000 a year. 52,000 x .$575 = $29,900 mileage deduction.
You're absolutely right except that the new rate is 54 cents this year.
 

Atom guy

Well-Known Member
What drivers at $1.10 or below are doing are transferring equity in their vehicle to themselves. They get cash flow but really earn nothing, or very little per hour, while the value of their vehicle goes down, and cost to repair it increases. Uber is using you.
True, you are losing a ton of equity by driving. And for those who are driving a new or newer vehicle, the depreciation costs will be substantial. For the drivers using older vehicles, they will hit the bottom of the depreciation curve pretty quickly, and then just have the maintenance costs to deal with.
 

Squirming Like A Toad

Well-Known Member
Then why not purchase a car on the bottom of the depreciation curve? You will surely sAve on the depreciation end.
That's exactly right. Shop around and find a car with high years and relatively low miles. That's the only kind of car you want to drive for X or XL. You should think of it as a disposable tool you use for a job, not "your car."
 

Atom guy

Well-Known Member
That's exactly right. Shop around and find a car with high years and relatively low miles. That's the only kind of car you want to drive for X or XL. You should think of it as a disposable tool you use for a job, not "your car."
Yes. I don't understand the idea of buying a new car for Uber, having a car payment AND suffering huge depreciation.
 

CrashCasey

Member
If UBER drops the mileage down to .80 in CT on a Monday I will not be driving on Tuesday of any day after that, there will be no reason to drive for them except to loose money that is and I don`t like loosing money.
 
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