Most Lyft customers can import their information from Lyft. Use these instructions if you prefer to enter them yourself.
Things are a little different when you rent a vehicle instead of driving your own. You can only claim a mileage deduction for a vehicle you own or lease. The Lyft Express Drive program is a short term rental agreement, so the miles you drove don’t qualify for the mileage deduction. However, you can deduct some or all of your Express Drive Rental fees and any gas you purchased to drive your rental for Lyft.
You’ll need to calculate:
- Your Express Drive Rental fees amount (found in the Lyft Tax Summary)
- Your gas expense for your rented vehicle
If the only vehicle you used when driving for Lyft was an Express Drive rental, you likely can’t deduct any Online Miles. Skip to Adjustment to Rental Fees.
If you used a Lyft rental and your own personal vehicle when driving for Lyft, you need to remove the miles driven with your Lyft rental from your Online Miles.
Based on your rental agreement:
- Determine your Rental Mileage for Lyft based on your rental agreement.
- From your personal records (or a mileage app) determine the miles you drove your rental for Lyft and for personal use.
- Subtract your total Rental Mileage for Lyft from your Online Miles. (An adjustment for your personal mileage isn’t needed.)
- Use this adjusted Online Miles when entering your vehicle expense.
You need to adjust the Rental fees amount for your business use of the Express Drive rental. You’ll calculate a Lyft business percentage using the business and personal miles you drove your rental.
- Determine your 2018 rental mileage for Lyft and your personal rental mileage based on your rental agreement:
- From your personal records (or a mileage app) determine the miles that were for Lyft business and for personal use.
- Add your Lyft business miles and your personal miles to get your total rental miles.
- Divide your Lyft business miles by your total rental miles to get your Lyft business percentage.
- Multiply your Rental fees amount by your Lyft business percentage to get your adjusted Rental fee amount.
- Use the adjusted Rental fees amount when entering your equipment rental expense.
Example: You had Rental fees of $200. You drove 1,000 miles with your rental with 750 miles for Lyft business and 250 miles for personal use. You would perform the following calculation:
750 ÷ 1,000 = 75% Lyft business percentage $200 x 75% = $150 adjusted Rental fees
Although you can’t claim the mileage you drove when using an Express Drive rental, you can likely deduct the percentage of your gas expense used for Lyft business.
- From your personal records, determine what you spent on gas when using your Express Drive rental.
- Take your gas expense times your previously calculated Lyft business percentage to get your adjusted gas expense.
- Use the adjusted gas expense when entering your equipment rental expense.