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New Member
posted Jun 4, 2019 11:13:43 PM

As a Uber/Lyft driver my car required $4K of repairs before going on the road. Can I expense that deduction as "startup costs" ?

This is a personal car used 75% time for Uber/Lyft. And if I can use those expenses as startup can I use standard mileage deductions afterwards or do I need to stick with actual expenses all to way through deductions section?

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1 Best answer
Expert Alumni
Jun 4, 2019 11:13:45 PM

The repair costs needed for your car before you started driving for Uber are not deductible. They do not qualify as start-up costs either.

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.

If you start deducting actual costs for your vehicle. you cannot revert to the standard mileage rate in later years.


3 Replies
Expert Alumni
Jun 4, 2019 11:13:45 PM

The repair costs needed for your car before you started driving for Uber are not deductible. They do not qualify as start-up costs either.

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.

If you start deducting actual costs for your vehicle. you cannot revert to the standard mileage rate in later years.


New Member
Jun 4, 2019 11:13:48 PM

OK, thanks, 2 questions....1) So if in future my car needs repairs those are deductible as actual expense as long as I was involved in driving for either rideshare company?  2) Likewise I assume if you select standard mileage you are stuck with that method in future years? Or should I have asked these questions in new dialogue request?

Expert Alumni
Jun 4, 2019 11:13:49 PM

If you deduct actual costs, you can claim repair costs (related to the business use of your car).
You can switch to the actual method later if you start with the standard mileage method, but not the reverse.