Uber Drivers

[POCAHONTAS]

Can Uber drivers deduct off trip miles as well as trip miles on schedule C or would off trip miles be considered commuting miles Thanks

[ATSMAN]

It is my understanding that both Uber and Lyft only record the mileage when a paying fare is in the car. They don't record the mileage between picking up fares. The driver should maintain a logbook to be able to deduct those miles. Two of my clients use Mile IQ app to do just that.

[POCAHONTAS]

my clients Uber tax summary says that the mileage includes off trip miles. so I am thinking off trip miles are not the paid miles. But my question is are they allowed to deduct the miles between picking up fares. Wouldn't those miles be considered commuting?

[Dude]

Sounds like they are categorizing all miles driven while on the clock (available for rideshare work). If this is the case then really there are no commuting miles unless they go off the clock (off availability) then go home and likewise dont start availability until they drive from home and pick up the first client. Off trip miles though should still be deductible just not as commuting but rather as work. I guess I am thinking this out because gig economy does not yet fit neatly into schedule c rules.

[ATSMAN]

I think a full time Driver should have a OIH then there is no commuting miles IMHO. They should keep a log book (paper or electronic) like professional drivers.

[TAXNJ]

Your post is getting a lot of guesses. You might look at The Tax book 10-4 & 5-19 and there are some court cases to reference.

[TaxGuyBill]

are they allowed to deduct the miles between picking up fares. Wouldn't those miles be considered commuting?

Yes. Driving from one business location (such as dropping off the first customer) to another business location (such as picking up the next customer) is deductible.

The "gray area" are the miles before picking up the first customer, and the miles after dropping off the last customer. For a self-employed person that has a qualified Home Office, that gets rid of the "gray area" because their Home Office is a business location. But it is questionable if an Uber driver would have a qualified Home Office.

[ATSMAN]

Yes. Driving from one business location (such as dropping off the first customer) to another business location (such as picking up the next customer) is deductible.

The "gray area" are the miles before picking up the first customer, and the miles after dropping off the last customer. For a self-employed person that has a qualified Home Office, that gets rid of the "gray area" because their Home Office is a business location. But it is questionable if an Uber driver would have a qualified Home Office.

How is this any different than my self employed truck driver that parks his truck in his over size garage, does routine maintenance, washes his truck and then drives from that location to pick up the first load. The log book is clocked right on his driveway. All my truck drivers have a OIH.

Now if the 18 year old is living with his parents in the basement and does part time driving that is a different issue. I am talking about full time professional drivers like taxi drivers.

[spanel]

Yes. Driving from one business location (such as dropping off the first customer) to another business location (such as picking up the next customer) is deductible.

The "gray area" are the miles before picking up the first customer, and the miles after dropping off the last customer. For a self-employed person that has a qualified Home Office, that gets rid of the "gray area" because their Home Office is a business location. But it is questionable if an Uber driver would have a qualified Home Office.

My .02

Uber. If pickups are in home area, then all deducible from the time they leave home. If pickups are outside home area, ie they have to drive to another town to "start work", then the mileage to/from the other town is non deductible.

Semi Driver is not a good comparison as they are required to deduct fuel/actual costs, not mileage. Also their truck is 100% deductible and not listed property.

Chris

[TAXNJ]

How is this any different than my self employed truck driver that parks his truck in his over size garage, does routine maintenance, washes his truck and then drives from that location to pick up the first load. The log book is clocked right on his driveway. All my truck drivers have a OIH.

Now if the 18 year old is living with his parents in the basement and does part time driving that is a different issue. I am talking about full time professional drivers like taxi drivers.

It seems to be all guesses at this point but maybe a reply poster will provide an IRS reference for support and the Original Poster can reference how their scenario applies. To quote a guess will not be good in an audit!

[ATSMAN]

Semi Driver is not a good comparison as they are required to deduct fuel/actual costs, not mileage. Also their truck is 100% deductible and not listed property.

If a Uber Driver wants to use actual expenses from the get go there is no law against that as long as business miles are logged appropriately in a log book to figure out business percentage.

I agree std. mileage is easier but if you got an older car that requires frequent repairs and is a gas guzzler, actual expenses may be better??

[spanel]

If a Uber Driver wants to use actual expenses from the get go there is no law against that as long as business miles are logged appropriately in a log book to figure out business percentage.

I agree std. mileage is easier but if you got an older car that requires frequent repairs and is a gas guzzler, actual expenses may be better??

Agreed

Chris