UBER Driver: Could I deduct the rented car expenses using standard mileage

[geoholt3]

• Someone else with Intuit just told me that you cannot deduct mileage with a rental. So what's the truth here?

[AmyC]

The facts: Topic No. 510 Business Use of Car | Internal Revenue Service states under 

Standard Mileage Rate:

• You must not have claimed actual expenses after 1997 for a car you lease.
• For a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate.

Actual Expenses - To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that's business use. Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles.

If this is your first year with a leased car, you have an important decision to make between standard and actual. Leased cars often do well with actual due to the leasing expenses. Each situation is unique so read and think about what you expect the next years with the leased vehicle to look like before deciding.

@geoholt3 

[geoholt3]

I didn't say lease, I said rent. Uber rents cars now.

[KevinNg131]

@geoholt3

that is true. Rental car cannot deduct mileage because it is not your car.

[KevinNg131]

Nvm. I found it .

[geoholt3]

Thank you

[Jonvalt]

Question

If I lease a vehicle, can I deduct the cost of the lease payments plus the standard mileage rate?

Answer

If you lease a car you use in business, you may not deduct both lease costs and the standard mileage rate. You may either:

• Deduct the standard mileage rate for the business miles driven. If you choose this method, you must use the standard mileage rate method for the entire lease period (including renewals).
• Claim actual expenses, which would include lease payments. If you choose this method, only the business-related portion of the lease payment is deductible.

[Howric51]

So what’s the answer?

[TeresaM]

This is an older thread and has had a few different discussions. 

If your question is from the original post, if you rent a car for business, you may only deduct actual expenses because part of the standard mileage is depreciation of the vehicle and you do not own the rental. 

@Howric51

[RP35]

If I rent a car from Uber through Hertz/Uber rental, can I deduct the cost of the rental

[CatinaT1]

If you rented it for business purposes, yes; if personal use, no.

[AeroServant]

The KEY to this question is... the car used for UBER/LYFT is RENTED thru uber/lyft from a car rental company. The rental cost is directly withheld from driver pay until full amount is covered from earned income or in shortfalls paid for by drivers credit card. Can you kindly post an updated answer regarding RENTED cars for Rideshare Drivers.

[AeroServant]

FYI: It seems that to many persons are not familiar with what a Rideshare Driver is (self-employed) or the companies UBER or LYFT that hire us. Maybe they think we are employees? MOST are independent contractors with those companies (gig workers). Now, car RENTAL is an option at both companies and a small percentage of drivers will now be driving a rental car full time (their own vehicle) and indeed paying out RENTAL fees for the use of that vehicle.

[AmeliesUncle]

I'm puzzled at the comments say the Standard Mileage Rate can't be used for "rented" cars. 

Rent and Lease are pretty much the same thing.  Publication 463 even specifically mention a "lease" could be under 30 days (and I believe the TurboTax even has a specific line for a "lease" less than 30 days).

For those of you that say a "rented" car can't use the Standard Mileage Rate, on what basis are you saying that?  How are you defining "rent" versus "lease", and on what tax authority are you coming up with that definition?

[JustMeInKS]

No you can’t deduct mileage for a rental car…