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AJ2
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Can I deduct the following driving for Uber: New tires, Oil Change, Tolls Interest on car payment Personal Cell phone bill (did not rent from uber) or car insurance

 
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4 Replies
DDollar
Expert Alumni

Can I deduct the following driving for Uber: New tires, Oil Change, Tolls Interest on car payment Personal Cell phone bill (did not rent from uber) or car insurance

As an Uber driver you are a self employed independent contractor, so you can claim the expenses you incur related to your business.  You can definitely claim tolls.  You can also claim your cell phone - I recommend you allocate your bill between business and personal use base on a reasonable estimate how much you use it for each.  As for vehicle related expenses, there are two ways to deduct your costs. The first is the standard mileage rate (which was $0.54 in 2016).  This is the easiest method.  This rate covers depreciation, insurance, gas, oil changes, repairs and other maintenance.  You just track your mileage and enter it the program.  The other method is the actual method. Under this method you track all your actual expenses (you still have to track your mileage to get the percentages of business vs personal) and enter them in the program.

You can enter both methods and TurboTax will select the one that gives you the best deduction, which is usually (but not always) the standard rate.

[Edited to add additional information 03/14/17]

If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.

If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period.

You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. You can’t revoke the choice. However, in later years, you can switch from the standard mileage rate to the actual expenses method. If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation.

Can I deduct the following driving for Uber: New tires, Oil Change, Tolls Interest on car payment Personal Cell phone bill (did not rent from uber) or car insurance

Don't you need to use the same method you used in the previous years though, unless you fill out some other form to switch?
DDollar
Expert Alumni

Can I deduct the following driving for Uber: New tires, Oil Change, Tolls Interest on car payment Personal Cell phone bill (did not rent from uber) or car insurance

See the additional information I added to the Answer above for the rules about changing methods.

Can I deduct the following driving for Uber: New tires, Oil Change, Tolls Interest on car payment Personal Cell phone bill (did not rent from uber) or car insurance

Thank you David. I noticed my tax preparer used both the standard mileage deduction and the actual cost method on my tax return last year. What would you recommend for that? Should I use the standard mileage deduction?
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