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Level 2

Question

This is a question about mileage deduction with uber. Can I deduct the miles I drove while searching for a customer? Not just miles driven for the customer?

Forum|Forum|7 years ago
June 6, 2019
7 replies
0 views

The miles I drive between customer's (while not actually driving a customer). Is that considered a business expense? Someone said it was, but how do you prove it?

Carl

Level 11

The key word is "available". Miles driven while available are deductible. Please read the *entire* thread for more details on what you can and can not deduct at <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2722277">https://ttlc.intuit.com/questions/2722277</a>

thetalismanserieAuthor

Level 2

Mostly my issue is proving the miles. According to the uber website, unless you have documentation of the miles driven, the IRS can refuse to consider anything less than proven to be a deductible.

Even still, I continue to reset my odometer and just write down the miles I drive while online.

Rainman12

Alumni - Champ

Each route segment should begin and end with Place and Purpose. See <a rel="nofollow" target="_blank" href="https://www.fool.com/knowledge-center/irs-mileage-log-requirements.aspx">https://www.fool.com/knowledge-center/irs-mileage-log-requirements.aspx</a>

Carl

Level 11

Don't just track the miles driven alone. You should also track your odometer start/stop miles also because your personal use miles vs business use miles has a direct impact percentage wise on your other vehicle expenses.

thetalismanserieAuthor

Level 2

Driving for uber it's not easy to track odometer for each trip. How about the odometer reading when I go online to when I go offline? That would be easier

Opus 17

Level 15

Your deductible mileage is the mileage when you are available for service. If you get in your car at home and log into the app, then drive to the downtown area where the bars are (or someplace else where you think you are likely to get fares) then your starting mileage is deductible even if you don't have a fare. If you log off the app after you drop off your last fare, and drive home, that mileage is not deductible if you are not available for hire.

Your available mileage will be different from that shown by the Uber app. You should keep your own separate record. You can use a paper log book/diary made for this purpose, or you can use a smartphone app. Record the date, start time, start odometer, business purpose (driving for Uber), end time, and end odometer, for each day that you drive. If you sign off for part of the day for meals or to do personal errands, note your sign off and sign on times and odometer readings as well so you don't try and deduct personal miles. For most days, you will have one or more Uber fares during the time you are online and available that you can match to your log of availability if you are audited. But your deductible miles are when you are available for a fare.

Daniel_K

Level 2

Hi,

Thank you for your very detailed and helpful response to the OP.

So if I can deduct all online miles, I could in theory go online, drive around for 1000 miles, reject all offers, then log off and deduct those 1000 miles. Is that correct? Might come down to morality at this point..

(There have been times where I logged on for 15 minutes while driving home from work, no good offers popped up so I rejected them, I arrived at home and decided to log off and take it easy instead).

Thanks for your help

Vanessa A

Level 15

No. That is not correct. If you are just aimlessly driving around, you cannot deduct the miles simply because you are online. In order to take any deduction, it must be necessary and ordinary to be considered business related (meaning, your driving must have a business purpose). Although it is ordinary to use your vehicle for the gig apps and drive miles, you must actually have a REASON to do so or else it would not be considered necessary.

If you drive 1,000 miles and reject 100% of the offers, it would be hard to prove that this was business related and you were available for work.

If you are cruising for positioning so that you can receive better offers, then that would be considered work related as your goal would be to make a profit, as opposed to aimlessly driving or driving to places you want to or need to go for your own personal reasons.

Turning the app on while driving home does not allow you to claim your commute home from work as business miles.

You can deduct miles that are driven for business purposes (ex., to pick up/drop off an accepted order, to reposition to a busier area, or between business stops). Personal miles, including normal commuting, aren’t deductible, even if the app is on.

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Rmillo33

Level 2

When you got trip paid on the app and 0 miles,how to add to mileage app?

Carl

Level 11

While keeping track of miles driven for each fare is necessary, that's not nearly enough documentation. When filing your tax return the following information has to be provided to the IRS.

- Odometer reading on Jan 1 of the tax year, or on the day you started using your car for business purposes, even if that use was less than 100% business use.

- Odometer reading on Dec 31 of the tax year, or on the last day you used your car in the business.

- Number of miles driven for business purposes (you have to prove this if audited)

- Number of miles driven for personal purposes (not dedutible, but reportable)

- Number of commuting miles driven (not deductible, but reportable)

Commuting miles driven are the miles from your residence to your primary place of employment, and back. In the case of an Uber driver, your commuting miles are the miles from your home to your first client, and from the drop off location of your last client, back to your home. These miles are not deductible.

Note that your business miles, personal miles and commuting miles "MUST" add up to the total miles driven for the year as determined by subtracting the Jan 1 odometer reading, from the Dec 31 Odometer reading.