Ridesharing expenses

mmarteaga21 · ‎June 5, 2019

I rented a car through the partnership between uber and enterprise, after an accident with my previous car. I have been using this car for the last 5 months of 2016. Can I use the payments I did for the rental as an expense?

DawnC0 · ‎June 5, 2019

Yes, but only if you use the Actual Expense method as opposed the Standard Mileage method to report your vehicle expense. TurboTax will ask you for everything, and if you own or lease the vehicle, you can choose whichever method results in a larger deduction.

For the rental, you must use you must use the Actual Expense method because you do not own or lease the car.

Note **When you use your personal auto to drive for Uber, expenses must be allocated between business use and personal use. The amount deductible is based on a percentage generally calculated by dividing the total deductible miles for the activity by the total miles the vehicle was driven for all purposes during the year. So, for any vehicle used in both personal and business activities, keep track of your mileage no matter what method you are using.

View solution in original post

DawnC0 · ‎June 5, 2019

Yes, but only if you use the Actual Expense method as opposed the Standard Mileage method to report your vehicle expense. TurboTax will ask you for everything, and if you own or lease the vehicle, you can choose whichever method results in a larger deduction.

For the rental, you must use you must use the Actual Expense method because you do not own or lease the car.

Note **When you use your personal auto to drive for Uber, expenses must be allocated between business use and personal use. The amount deductible is based on a percentage generally calculated by dividing the total deductible miles for the activity by the total miles the vehicle was driven for all purposes during the year. So, for any vehicle used in both personal and business activities, keep track of your mileage no matter what method you are using.