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Rideshare Mileage vs Actual Expenses

Odd question, can't say I've had this happen before. I've been driving rideshare on the weekends for 7 years, the first year I took standard mileage, every year since then I've let TT choose which is best.

 

This year however, it seems like TT isn't calculating things correctly, or I'm missing something. 

 

Vehicle 1, in 2023 my total miles driven for all uses 17,048, of that 3,740 was commuting to/from my regular job, Uber/Lyft , mileage is 9,889. My total vehicle expenses (gas, oil, tires, general repairs, etc., etc., etc.)  is $10, 220. According to TT, I got a larger deduction from the standard mileage than I do for the actual expenses, that seems off, or am I looking at it wrong?

 

Vehicle 2 in 2023 my total miles were 8745, of that 780 was commuting (it's my wife's car, she only drives 1.75 miles per day), U/L mileage is 5477, total actual expenses was $3701. On this vehicle, again it seems like TT is under calculating actual expenses for business use.

 

Based on age, 2015/2013, both vehicles are fully depreciated.

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2 Replies
RobertB4444
Employee Tax Expert

Rideshare Mileage vs Actual Expenses

You are looking at this wrong.

 

Your actual expenses are prorated across all of the mileage that you drive.  You are entitled to deduct the business use percentage of your actual expenses.  For a vehicle that is driven 100% of the time for business that is 100% of the expenses.

 

In the two instances that you mention that is 58% and 62.6%.  When you take that percentage of the actual expenses then the standard mileage rate is much better.

 

@egpowers 

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Rideshare Mileage vs Actual Expenses

9889÷17048=58%, so the deduction would be $5,917.

 

9889 x 62.5 cents per mile is a deduction of $6,180. 

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