SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    TAX question for gig jobs >>>>>>>>>>
Go
New
Find
Notify
Tools
Reply
  
TAX question for gig jobs >>>>>>>>>> Login/Join 
Member
posted
Any tax experts know with so called GIG jobs that uses your personal vehicle such as Uber, Instacart, Door Dash, etc. can you claim mileage and / or expenses of the maintenance of the vehicle ??? If so how much can you claim, etc ??? Example if my vehicle is up for 60K miles service, can I expense the cost of that ??? Thank you for reading and any info given, etc. God Bless Smile


"Always legally conceal carry. At the right place and time, one person can make a positive difference."
 
Posts: 3069 | Location: Sector 001 | Registered: October 30, 2009Reply With QuoteReport This Post
No More
Mr. Nice Guy
posted Hide Post
Either take the per mile allowance or pro-rate your actual expenses. Either needs to be documented. The per-mile is the simplest, just multiply your legitimate business miles by the IRS per-mile allowance.
 
Posts: 9452 | Location: On the mountain off the grid | Registered: February 25, 2002Reply With QuoteReport This Post
Member
posted Hide Post
Anyone else doing GIG jobs or has done in the past and if so which method for taxes did you use and why ??? Again thank you for reading and any info given or shared. God Bless Smile


"Always legally conceal carry. At the right place and time, one person can make a positive difference."
 
Posts: 3069 | Location: Sector 001 | Registered: October 30, 2009Reply With QuoteReport This Post
Member
posted Hide Post
I agree with fly-sig. The paperwork required to itemize expensing vehicle maintenance is way more involved than simply claiming the mileage rate. If i recall, you have to log work usage vs personal usage, and then pro-rate all of your vehicle expenses by that percentage. The IRS rate is supposed to encompass all of that. Another aspect is that the vehicle is an asset and has depreciating value.

While I travel for work, I don't do gig work. My accountant told me to just use the IRS rate.


Peter
 
Posts: 94 | Location: Chesapeake, VA | Registered: September 05, 2012Reply With QuoteReport This Post
Member
Picture of P250UA5
posted Hide Post
Uber/Lyft give you an annual report on mileage.
IRS rate was simple & easy.




The Enemy's gate is down.
 
Posts: 15331 | Location: Spring, TX | Registered: July 11, 2011Reply With QuoteReport This Post
No More
Mr. Nice Guy
posted Hide Post
I've used Turbo Tax forever and it does a good job. I've claimed mileage on and off related to job expenses and with my wife's consulting business. But not as a central part of a business like Uber.

If you have a very expensive vehicle then taking actual expenses, including depreciation, could be a benefit. Depreciation is a double-edged sword though, that can bite you when you sell the vehicle.

For typical vehicles the mileage allowance is probably sufficient to cover your costs, and it is much simpler book keeping.
 
Posts: 9452 | Location: On the mountain off the grid | Registered: February 25, 2002Reply With QuoteReport This Post
Optimistic Cynic
Picture of architect
posted Hide Post
When I was using my vehicle for work purposes in my self-employed business, I would run my taxes both ways (with actual expenses vs. the IRS per mile "allowance"). For some strange reason the actual expenses always ended up higher than the allowance. Even just the gas alone was usually higher than the IRS. Both calculations were done with the same mileage figures. There are multiple phone apps out there that will help track mileage and expenses as they occur. I used aCar, but there is probably something better now.

If you are going the actual expenses route, don't forget things like insurance, depreciation, and interest on your car payments. Stuff like personal property taxes can usually be deducted directly, rather than pro-rated as vehicle expenses.

It can get complicated deciding where to take deductions. At some point it becomes a choice between how much time you expend (and possibly waste) chasing that last dollar vs. what your time is worth to you.
 
Posts: 6477 | Location: NoVA | Registered: July 22, 2009Reply With QuoteReport This Post
Member
posted Hide Post
Just be aware of an odd quirk. You can switch between the two methods EXCEPT in year one. Once you pick actual in the first year that's it.


“So in war, the way is to avoid what is strong, and strike at what is weak.”
 
Posts: 11002 | Registered: October 14, 2004Reply With QuoteReport This Post
  Powered by Social Strata  
 

SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    TAX question for gig jobs >>>>>>>>>>

© SIGforum 2024