Zero or negative income

[Zawop]

With the IRS standard deduction of $.55/ mile and uber paying $.65 /mile only with the passenger in the the vehicle what would be expected reported income? Would it be suspicious to the IRS to claim negative income?

 

[UberTaxPro]

With the IRS standard deduction of $.55/ mile and uber paying $.65 /mile only with the passenger in the the vehicle what would be expected reported income? Would it be suspicious to the IRS to claim negative income?

Mileage expenses need to be documented. If you've got the documentation and the miles are "ordinary and necessary" to your ride-share business, suspicion shouldn't be an issue. Recently I've heard of more mail audits for schedule c filers showing negative income, usually all they want from ride-share drivers is the mileage log. I understand your concern but really all you have to do is send them a copy of your mileage log and your good. Let them be suspicious if they want!

 

[Stevie The magic Unicorn]

The IRS has to know about it by now. The simple fact is that uber/lyft drivers are being paid a fraction perm mile of what taxi/towncar drivers who are using the same vehicles get paid.

The saving grace is that the IRS deduction figure is calculated using information from independent 3rd party sources.

The other saving grace is that most politicians have shiny sports cars they use for l business reasons and they like deductions to.

 

[FLKeys]

The IRS has to know about it by now. The simple fact is that uber/lyft drivers are being paid a fraction perm mile of what taxi/towncar drivers who are using the same vehicles get paid.

The saving grace is that the IRS deduction figure is calculated using information from independent 3rd party sources.

The other saving grace is that most politicians have shiny sports cars they use for l business reasons and they like deductions to.

I'm sure they do and I'm sure they know many do not keep proper mileage logs. Sending an audit my mail cost them hardly anything and they will eventually land a big fish that way over stated their miles.

Many here say my mileage log is too much before they even give it a try. I'll be the fish that the IRS has to toss back because I am out of season.

 

[Stevie The magic Unicorn]

I'm sure they do and I'm sure they know many do not keep proper mileage logs. Sending an audit my mail cost them hardly anything and they will eventually land a big fish that way over stated their miles.

Many here say my mileage log is too much before they even give it a try. I'll be the fish that the IRS has to toss back because I am out of season.

Your getting florida rates,

It wouldn't shock me if mileage put you $10,000 in the hole for the year.

 

[polar2017]

I have reported a net loss 3 years in a row driving rideshare.

 

[RadarRider]

I have my mileage at the beginning of the year and the end. I rarely use my car for anything else and we use my girlfriends care to do stuff. My rideshare mileage combined with lyft and Uber is a smidge higher.
Now... I realize that I am going to have to keep my uber app on with DM, and due to the stealing of a percentage - just reject every ride on my way home.

Post automatically merged: Apr 15, 2019