Solved: Should i include a car accident that happened while my car was parked, while driving for uber , as part of my depreciation along with the mileage
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New Member

Should i include a car accident that happened while my car was parked, while driving for uber , as part of my depreciation along with the mileage

My uber app was on at the time when my car was struck in the parking lot of a hotel i entered to use the restroom momentarily

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New Member

Should i include a car accident that happened while my car was parked, while driving for uber , as part of my depreciation along with the mileage

No. The cost of your repair is not part of the depreciation of the vehicle. Repairs are separate from depreciation. You can deduct 53.5 cents per mile or actual vehicle expenses (ie. gasoline. oil, tires, maintenance) prorated for business miles.

This is how actual expenses works. It may be beneficial if you use your car a lot for your Uber business. You car accident would be deductible here even if you weren't on the job at the time.

Here are some of the items you can include in your deduction:

·        A portion of your lease payment (if you are leasing your vehicle)

·        Auto loan interest (if you’re financing the purchase of your vehicle)

·        Auto Insurance

·        Maintenance and Repairs (like oil changes, new tires, replacing brake pads, etc.)

·        Depreciation

Example You drove 10,000 miles in the year 2017, and 5,000 of those miles were for business. Here’s how you would break down your deductions using the Actual Expenses method:

·        Gas: $1,000

·        Insurance: $1,500

·        Repairs: $400

·        Lease Payments: $6,000

·        Oil: $100

·        Car Wash: $500

These figures total to $9,500 in car-related expenses. Since you used your car for business purposes 50% of the time, you would multiply your total expenses by 50% to get your actual deduction, which comes out to $4,750.

If you use these same figures to calculate your reimbursement using the Standard Mileage method, you would multiply your business mileage (5,000 miles) by the standard mileage rate (53.5 cents per mile for 2017), which comes out to $2,700.

Of course, your mileage may vary, but TurboTax will allow you to easily determine whether this is a good strategy for you.

View solution in original post

1 Reply
New Member

Should i include a car accident that happened while my car was parked, while driving for uber , as part of my depreciation along with the mileage

No. The cost of your repair is not part of the depreciation of the vehicle. Repairs are separate from depreciation. You can deduct 53.5 cents per mile or actual vehicle expenses (ie. gasoline. oil, tires, maintenance) prorated for business miles.

This is how actual expenses works. It may be beneficial if you use your car a lot for your Uber business. You car accident would be deductible here even if you weren't on the job at the time.

Here are some of the items you can include in your deduction:

·        A portion of your lease payment (if you are leasing your vehicle)

·        Auto loan interest (if you’re financing the purchase of your vehicle)

·        Auto Insurance

·        Maintenance and Repairs (like oil changes, new tires, replacing brake pads, etc.)

·        Depreciation

Example You drove 10,000 miles in the year 2017, and 5,000 of those miles were for business. Here’s how you would break down your deductions using the Actual Expenses method:

·        Gas: $1,000

·        Insurance: $1,500

·        Repairs: $400

·        Lease Payments: $6,000

·        Oil: $100

·        Car Wash: $500

These figures total to $9,500 in car-related expenses. Since you used your car for business purposes 50% of the time, you would multiply your total expenses by 50% to get your actual deduction, which comes out to $4,750.

If you use these same figures to calculate your reimbursement using the Standard Mileage method, you would multiply your business mileage (5,000 miles) by the standard mileage rate (53.5 cents per mile for 2017), which comes out to $2,700.

Of course, your mileage may vary, but TurboTax will allow you to easily determine whether this is a good strategy for you.

View solution in original post

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