i bought my car in 2018, can i write off the title fees? getting slightly conflicting info from some websites about what you can and cant deduct as business expenses if youre taking the standard mileage rate. some are saying you CAN write off car washes and spotify, and some are saying thats double dipping..
https://www.taxslayer.com/blog/rideshare-drivers-avoid-these-5-common-tax-mistakes/ says:
If you use the standard method for calculating your deduction, you should not also be deducting itemized expenses. These include things like car washes, gas, maintenance, depreciation, fees, insurance, repairs, oil, tires, registration, or lease payments. The standard method accounts for these and allows you to deduct a flat rate of 54.5 cents/mile. Writing off these individual expenses when you use the standard method is actually double-dipping. You could wind up with a big penalty from the IRS if you are caught.
however, this one:
says:
Deduction #9: Commissions/Fees
Tax Category: Business Expenses
This is where your yearly summaries for Lyft and Uber come into play. Find your Lyft commissions section and your Uber expenses, fees, and taxes section on your yearly summaries. These are what you will deduct as commissions/fees. Any commission or fee Uber or Lyft took from your earnings is deductible.
Deduction #10: Dashboard Camera
Tax Category: Business Expenses
Not only is it smart to have a dashboard camera, but its also deductible. Deduction amounts relies on personal/business use percentage.
Deduction #11: Butt/Back Pad
Tax Category: Business Expenses
Did you buy any tailbone/support products for ridesharing? First off, they make driving long hours far more bearable. Second, you can deduct them.
Deduction #12: Cell Phone and Data Plan
Tax Category: Business Expenses
If you bought a cell phone just for rideshare purposes you can deduct the whole phone. If you are using a new phone that you use for personal and business purposes you can deduct a percentage of your cell phone that you use for business. Also, you can deduct a portion of your of cellular data plan as well.
Deduction #13: Roadside Assistance Plans
Tax Category: Business Expenses
Did you buy AAA or other roadside assistance plans for ridesharing? If so you can deduct all costs of these plans from your taxes. If you bought it before find the percentage between personal and business use of the plans.
Deduction #14: Music Subscriptions
Tax Category: Business Expenses
Did you purchase any music subscription programs like Apple Music, Spotify Premium or Soundcloud Go for rideshare? If so deduct the cost. If its personal/business deduct the appropriate business use percentage.
Deduction #15: Phone Mount
Tax Category: Business Expenses
Unless you had one provided for you, you bought a phone mount. Deduct it.
Deduction #16: Phone Chargers
Tax Category: Business Expenses
Did you buy additional cell phone chargers for yourself and your passengers? Deduct them!
Deduction #17: Snacks/Drinks
Tax Category: Business Expenses
Candies, water, or any snacks/drinks are all deductible if bought for your rideshare passengers.
Deduction #18: Parking Fees
Tax Category: Business Expenses
Did you pay for any parking while driving for Uber and Lyft. Guess what deduct those parking fees!
Deduction #19: Tolls
Tax Category: Business Expenses
If you paid for tolls to get anywhere for ridesharing they are deductible. You can also deduct tolls that occurred during your rideshare trips. You can find tolls that you occurred during your rideshare trips under your Uber and Lyft yearly summaries.
Deduction #20: Car Washes
Tax Category: Business Expenses
Did ridesharing up your amount of car washes? Write those extra car washes off.
Deduction #21: Cleaning Materials
Tax Category: Business Expenses
Did you buy a portable vacuum, lint rollers, or anything that you use to clean your car? Deduct it.
Deduction #22: Seat Covers
Tax Category: Business Expenses
Seat covers protect your car from unwanted stains. They also give your car a fresher look. Deduct these.
Deduction #23: Car Mats
Tax Category: Business Expenses
Buying all weather car mats not only protects your car, but it also keeps it looking cleaner. Don't forget to deduct these mats.
Deduction #24: Air Fresheners
Tax Category: Business Expenses
Did you buy febreeze, essential oils, or a diffuser to make your car smell wonderful for your passengers? Deduct those.
Deduction #25: Massages
Tax Category: Business Expenses
Getting a massage a great way to loosen up your tense driving muscles and as long as your doctor prescribes them as medically necessary they are deductible. Go get yourself a tax deductible massage!