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Your deductible mileage is the mileage when you are available for service. If you get in your car at home and log into the app, then drive to the downtown area where the bars are (or someplace else where you think you are likely to get fares) then your starting mileage is deductible even if you don't have a fare. If you log off the app after you drop off your last fare, and drive home, that mileage is not deductible if you are not available for hire.
Your available mileage will be different from that shown by the Uber app. You should keep your own separate record. You can use a paper log book/diary made for this purpose, or you can use a smartphone app. Record the date, start time, start odometer, business purpose (driving for Uber), end time, and end odometer, for each day that you drive. If you sign off for part of the day for meals or to do personal errands, note your sign off and sign on times and odometer readings as well so you don't try and deduct personal miles. For most days, you will have one or more Uber fares during the time you are online and available that you can match to your log of availability if you are audited. But your deductible miles are when you are available for a fare.
When you got trip paid on the app and 0 miles,how to add to mileage app?
While keeping track of miles driven for each fare is necessary, that's not nearly enough documentation. When filing your tax return the following information has to be provided to the IRS.
- Odometer reading on Jan 1 of the tax year, or on the day you started using your car for business purposes, even if that use was less than 100% business use.
- Odometer reading on Dec 31 of the tax year, or on the last day you used your car in the business.
- Number of miles driven for business purposes (you have to prove this if audited)
- Number of miles driven for personal purposes (not dedutible, but reportable)
- Number of commuting miles driven (not deductible, but reportable)
Commuting miles driven are the miles from your residence to your primary place of employment, and back. In the case of an Uber driver, your commuting miles are the miles from your home to your first client, and from the drop off location of your last client, back to your home. These miles are not deductible.
Note that your business miles, personal miles and commuting miles "MUST" add up to the total miles driven for the year as determined by subtracting the Jan 1 odometer reading, from the Dec 31 Odometer reading.
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