Tips for getting tax deductions when driving for Uber or Lyft, whether using your own vehicle or TLC cars for rent.
BROOKLYN, NEW YORK, UNITED STATES, November 6, 2019 /EINPresswire.com/ — Whether you drive your own vehicle or use TLC car rental for Uber or Lyft, there are many expenses you will encounter when working. This means that some of the expenses may be tax deductible which can save you money every year. Understanding how to take advantage of tax deductions may keep hundreds of dollars or more in your wallet if you can keep proper records.
Here are a few tips that will help you identify possible areas of savings through the use of tax deductions when you rent a car for Uber or Lyft.
Standard Deductions for Uber and Lyft
What follows are some of the most common tax deductions you can use if you are an Uber or Lyft driver. Just remember to keep track of them for your taxes.
– Accessories: Mats, Seatback Organizer, Pillow, etc.
– Amenities: Water, Beverages, Candy, and Chargers for Riders
– Apps: All driver apps used exclusively for Uber or Lyft
– Cell Phone: Overall Cost, Chargers, Mounts, and Service are Deductible for Your Business
– Dashcams: Security Protection for Your Vehicle is Deductible
– External GPS: Location Tracking for Uber or Lyft is also Deductible
– Mileage: The Most Common Deduction, 54.5 cents per mile
– Tolls & Parking: Both are Deductible if not Reimbursed
– Vehicle Inspection: Cost of Inspections for Uber and Lyft are Deductible
Deep Cleaning: Not a regular car wash, but a deep cleaning for your vehicle due to a passenger making a mess is deductible.
Health Insurance: Any health insurance premiums are deductible for work. However, if you receive health insurance from your spouse, then you cannot use this deduction.
Taking Care of Your Vehicle
There are deductions for the care and maintenance of your vehicle. What follows are some of the more common ones, although if you take the standard mileage deduction, then you cannot use any of these.
– Auto Insurance
– Oil Changes
– Lease or Car Payments
Be sure to keep track of all these expenses and add them up. If they exceed the mileage deduction, then you can take them combined as a deduction.
Use Tax Deduction Software
It helps when you use the right software to keep track of your tax deductions. There are several excellent brands of software, including Mile IQ, QuickBooks Self Employed, and Stride Tax. The more you use the software to keep track of tax deductions, the easier it will be to claim it on your tax forms.
Keep in mind that if you lease a vehicle and deduct the mileage in the first year, you cannot then change to deducting the actual expenses of your vehicle later in the life of the lease.
For those who use TLC car leasing, TLC cars for rent, or use their own vehicle for Uber or Lyft, knowing the different tax deductions may make a big difference in your profit margin. You can also talk to a qualified tax accountant to see how other expenses can be counted as tax deductions.
Source: EIN Presswire