Deductions for Uber Drivers

[vseals]

I need information about the 1099-K THAT UBER DRIVERS receive. Can I deduct mileage if I used the standard deductions last year ? I know the answer is No, but wanted to be sure. Also where can I find a list of deductible items?

[Gene V]

I need information about the 1099-K THAT UBER DRIVERS receive. Can I deduct mileage if I used the standard deductions last year ? I know the answer is No, but wanted to be sure. Also where can I find a list of deductible items?

Here is couple website on Uber Drivers, you can Google more.

https://www.mileiq.com/blog/uber-driver-tax-checklist/

http://quickbooks.intuit.com/r/driver/tax-help-uber-drivers-file-uber-1099/

[Burke]

I need information about the 1099-K THAT UBER DRIVERS receive. Can I deduct mileage if I used the standard deductions last year ? I know the answer is No, but wanted to be sure. Also where can I find a list of deductible items?

Not sure what you mean by "standard deductions." Uber drivers file Schedule C for income & deductions and mileage is part of that if they use their own car.

[spanel]

I need information about the 1099-K THAT UBER DRIVERS receive. Can I deduct mileage if I used the standard deductions last year ? I know the answer is No, but wanted to be sure. Also where can I find a list of deductible items?

If standard = Depreciation & Actual Expenses

Then NO, you must continue Depreciation and Actual Expenses.

If Standard = Mileage

You must Continue with Mileage

Work with the above until a new vehicle is placed in service.

Chris

[kathyc2]

If standard = Depreciation & Actual Expenses

Then NO, you must continue Depreciation and Actual Expenses.

If Standard = Mileage

You must Continue with Mileage

Work with the above until a new vehicle is placed in service.

Chris

I believe if you start w/ actual you must continue w/ actual and can not switch to mileage rate.
If you start w/ per mile rate you can switch to actual, but then must continue w/ actual going forward.

[TAXNJ]

If standard = Depreciation & Actual Expenses

Then NO, you must continue Depreciation and Actual Expenses.

If Standard = Mileage

You must Continue with Mileage

Work with the above until a new vehicle is placed in service.

Chris

What? Are you trying to say Actual Expense vs Standard Mileage methods ?

Think you should consider revising your post?

https://www.irs.gov/publications/p463/ch04.html#en_US_2016_publink100033935

[Gene V]

If you start w/ per mile rate you can switch to actual, but then must continue w/ actual going forward.

Kathy--I way I read it, if you start with standard mile rates, then in later years you can switch between actual or standard, you don't have to continual with actual.

IRS quote:
Choosing the standard mileage rate. If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.

[kathyc2]

Kathy--I way I read it, if you start with standard mile rates, then in later years you can switch between actual or standard, you don't have to continual with actual.

IRS quote:
Choosing the standard mileage rate. If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.

That wording is very convoluted. When they say "If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year" they mean that the first year can not be actual expenses.

The reason the rule is this way is because depreciation is part of the per mile rate. They don't want someone using actual when depreciation is being taken and then switching to per mile after cost basis is written off. If you have used actual at any time, you can not switch to per mile in future years.

[Gene V]

I could be wrong--However, I still think you can use standard after using actual (as long as you use straight line depreciation while using actual).
Of course, you would have to use standard the first year.

[ttbtaxes]

Rev. Proc. 2010-51, Section 4.05 outlines the limitations for use of the mileage method and subsection (3) specifically addresses prior depreciation of the vehicle.

[vseals]

Uber driver

Thank you very much for the websites

[vseals]

Uber Driver

I believe if you start w/ actual you must continue w/ actual and can not switch to mileage rate.
If you start w/ per mile rate you can switch to actual, but then must continue w/ actual going forward.

thank you very much!

[MAJ]

If Actual 1st then Actual Always!

I do believe the scenario is:

If you use ACTUAL EXPENSES the FIRST Year in service then you MUST Continue using Actual Expenses for the Life.
If you used STANDARD MILEAGE the First Year you can choose any method in subsequen years.

That's my Understanding --

I could be wrong--However, I still think you can use standard after using actual (as long as you use straight line depreciation while using actual).
Of course, you would have to use standard the first year.

[TAXNJ]

I could be wrong--However, I still think you can use standard after using actual (as long as you use straight line depreciation while using actual).
Of course, you would have to use standard the first year.

This might be interesting for reading. It is a post 8/30/05 TTB post by Poster Bees Knees titled "Straight Line Depreciation"

http://forum.thetaxbook.com/showthread.php?215-Straight-Line-Depreciation-for-Cars

[TaxGuyBill]

A few years ago I did some research about this digging through the legal gibberish, and I agree with Gene. As long as you start with the Standard Mileage Rate in the first year, you can do flip back-and-forth after that.

Interestingly, I think I also came to the conclusion that when you switch to the Actual Expenses, you probably should depreciate it using 3 years (the "Class Life"). However, in most cases the Luxury Limitations apply, so that wouldn't really change much.