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Discussion Starter · #1 ·
Please stop with the nonsense. The IRS deduction per mile is a blanket number covering everything from the smallest passenger car to “vans, pickups or panel trucks.”

Just because the deduction is $.625 per mile doesn’t mean that is what it COSTS you to own and operate YOUR vehicle.

Here’s a question for the naysayers: Does it cost the same amount to own and operate (for Uber) a 14 year old Prius as it costs to own and operate (for Uber) a brand new Escalade? The obvious answer is an emphatic NO! There is a HUGE difference in MPG, depreciation and insurance.

Please stop with the nonsense of throwing out $.625 per mile as what it COSTS every driver to own and operate their vehicle. My all-in costs are $0.25 - $0.30 per mile depending on gasoline cost, which is currently $3.149 per gallon.
 

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While I understand what you're saying and I agree with what you're saying, in all scenarios where our income comes into play, that's the final number that's used. So even if it only cost you 40 cents a mile to operate, that number is absolutely useless in the real world setting. You want people to stop using that number but how exactly are they supposed to do that when that's literally the only number accepted out in the real world. we can say what our true operating expense is but it's absolutely pointless. I'm assuming you use the $0.625 when tax time comes, right? So you're even using it to get the benefits from it and I'm sure you as well as everyone else wouldn't be happy if that number got lowered🤷‍♀️
 

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Discussion Starter · #4 ·
While I understand what you're saying and I agree with what you're saying, in all scenarios where our income comes into play, that's the final number that's used. So even if it only cost you 40 cents a mile to operate, that number is absolutely useless in the real world setting. You want people to stop using that number but how exactly are they supposed to do that when that's literally the only number accepted out in the real world. we can say what our true operating expense is but it's absolutely pointless. I'm assuming you use the $0.625 when tax time comes, right? So you're even using it to get the benefits from it and I'm sure you as well as everyone else wouldn't be happy if that number got lowered🤷‍♀️
Actually that number IS lowered behind the scenes. That’s the dirty little secret. The deduction of $.625 per mile will only net me a savings of ~$.15 per mile on the bottom line of my taxes.
 

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2019 Reproduction 1860s era Stage Coach, Vintage Italian Leather Saddle, A-36 stainless horse shoes
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Keep in mind.. rental drivers (particularly in NYC and Orlando) who rent a car by the day/week can't deduct per mile we have to use actual expenses.

Work miles/Total miles driven

Then Rental + gas+ tolls

So If I drive 220 work miles out of 220 total miles. (I drive to the shop (not counted) pick up the car drive for 12 hours and return it (count all miles in the taxi) then I don't count the miles going home. I would be 100% work miles.


And the $76 for the car plus gasoline plus tolls ($115 total as an example)


Regardless of that fact that 220 X .62 = $134 I can onyl deduct $115 because I'm doing actual expenses.
 

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While I understand what you're saying and I agree with what you're saying, in all scenarios where our income comes into play, that's the final number that's used. So even if it only cost you 40 cents a mile to operate, that number is absolutely useless in the real world setting. You want people to stop using that number but how exactly are they supposed to do that when that's literally the only number accepted out in the real world. we can say what our true operating expense is but it's absolutely pointless. I'm assuming you use the $0.625 when tax time comes, right? So you're even using it to get the benefits from it and I'm sure you as well as everyone else wouldn't be happy if that number got lowered🤷‍♀️
Respectfully, I think you're missing his point. YES $0.625 IS the number for accounting purposes. What he is saying, I think, is that it doesn't cost him that much to operate. So the tax deduction is some what of a gimme. Same goes for me. None of us want the tax deduction to be lowered, that would cost us money. Unless I misunderstood? @Rideshare Dude
 

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My current costs per mile (apx) to operate

.20 mile for gas
.04 mile for fluids
.02 mile for tires
.07 mile for cleaning (daily car wash, 3x year detailing)
.04 phone (x2)
.03 insurance ($1600 year for max coverage)
.03 repairs (various, need to save)
.15 vehicle cost ($40k/300k miles)
.10 mile taxes/ss (100k miles, 30k, 10k in taxes: 85k miles, 15k, 5k in taxes)

Sure I can say my costs per mile to operate is a mere .20 cents, but that only counts the gas and conveniently ignores all the other related costs of ridesharing, including depreciation of the vehicle which one day needs to be replaced. Still have to pay them or compensate with my own labor.

The IRS tax deduction of .625 cents a mile (as of July 1) likely includes taxes already paid on tires, maintenance, small repairs as well as vehicle purchase tax, cleaning and fuel taxes. Doesn't include phone, insurance most likely, certainly not personal taxes.

Obviously the tax deduction was created to simplify tax filing. Don't be deluded into thinking ones costs to operate are a mere .20 just based on gas that drivers are profiting 42.5 cents a mile off the IRS. Far from it.

My costs to operate are now .67 cents a mile, my vehicle CPM is .53 cents a mile. It's all a rough estimate as things change.

All a tax deduction is a prevention from being double taxed on costs one already paid and was taxed once before previously. Why it's imperitive to record ones miles and costs used for ridesharing, even if returning home with the app offline after a trip as those miles are related also.

There's lots of hidden costs associated with ridesharing as an income source, especially that tax ballon payment at the end of the year, repairs etc.

Then what about an accident? Oh sh*t I haven't saved any money to buy another vehicle with. Wouldn't it be nice to have TWO vehicles so one could use the other and not disrupt ones income source?

How about health care insurance? Budget that in yet? Increased risk of injury ridesharing all day.
 

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My current costs per mile (apx) to operate

.20 mile for gas
.04 mile for fluids
.02 mile for tires
.07 mile for cleaning (daily car wash, 3x year detailing)
.04 phone (x2)
.03 insurance ($1600 year for max coverage)
.03 repairs (various, need to save)
.15 vehicle cost ($40k/300k miles)
.10 mile taxes/ss (100k miles, 30k, 10k in taxes: 85k miles, 15k, 5k in taxes)

Sure I can say my costs per mile to operate is a mere .20 cents, but that only counts the gas and conveniently ignores all the other related costs of ridesharing, including depreciation of the vehicle which one day needs to be replaced. Still have to pay them or compensate with my own labor.

The IRS tax deduction of .625 cents a mile (as of July 1) likely includes tires, maintenance, small repairs as well as vehicle depreciation, cleaning and fuel. Doesn't include phone, insurance most likely, certainly not taxes.

Obviously the tax deduction was created to simplify tax filing. Don't be deluded into thinking ones costs to operate are a mere .20 just based on gas that drivers are profiting 42.5 cents a mile off the IRS. Far from it.

My costs to operate are now .67 cents a mile, my vehicle CPM is .53 cents a mile.

All a tax deduction is a prevention from being double taxed on costs one already paid and was taxed once before previously. Why it's imperitive to record ones miles and costs used for ridesharing, even if returning home with the app offline after a trip as those miles are related also.

There's lots of hidden costs associated with ridesharing as an income source, especially that tax ballon payment at the end of the year, repairs etc.

Then what about an accident? Oh sh*t I haven't saved any money to buy another vehicle with. Wouldn't it be nice to have TWO vehicles so one could use the other and not disrupt ones income source?
How are your phone, car wash, taxes vehicle operating expenses? They're business expenses but not vehicle operating expenses. I don't need a phone to drive a car.
 

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Premium Member
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709 Posts
Discussion Starter · #9 ·
My current costs per mile (apx) to operate

.20 mile for gas
.04 mile for fluids
.02 mile for tires
.07 mile for cleaning (daily car wash, 3x year detailing)
.04 phone (x2)
.03 insurance ($1600 year for max coverage)
.03 repairs (various, need to save)
.15 vehicle cost ($40k/300k miles)
.10 mile taxes/ss (100k miles, 30k, 10k in taxes: 85k miles, 15k, 5k in taxes)

Sure I can say my costs per mile to operate is a mere .20 cents, but that only counts the gas and conveniently ignores all the other related costs of ridesharing, including depreciation of the vehicle which one day needs to be replaced. Still have to pay them or compensate with my own labor.

The IRS tax deduction of .625 cents a mile (as of July 1) likely includes tires, maintenance, small repairs as well as vehicle depreciation, cleaning and fuel. Doesn't include phone, insurance most likely, certainly not taxes.

Obviously the tax deduction was created to simplify tax filing. Don't be deluded into thinking ones costs to operate are a mere .20 just based on gas that drivers are profiting 42.5 cents a mile off the IRS. Far from it.

My costs to operate are now .67 cents a mile, my vehicle CPM is .53 cents a mile.

All a tax deduction is a prevention from being double taxed on costs one already paid and was taxed once before previously. Why it's imperitive to record ones miles and costs used for ridesharing, even if returning home with the app offline after a trip as those miles are related also.

There's lots of hidden costs associated with ridesharing as an income source, especially that tax ballon payment at the end of the year, repairs etc.

Then what about an accident? Oh sh*t I haven't saved any money to buy another vehicle with. Wouldn't it be nice to have TWO vehicles so one could use the other and not disrupt ones income source?

How about health care insurance? Budget that in yet? Increased risk of injury ridesharing all day.
Based on 60,000 miles a year.

You spend $12,000 a year on gas. I spend $7,500

You spend $2,400 a year on fluids. I spend $420

you spend $1,200 a year on tires. I spend $800 (for the best Michelin all season tires Costco sells)

you spend $4,200 a year on cleaning. I spend $384 (unlimited car wash membership)

you spend $2,400 a year on your phone. I spend $1,080 (Verizon business plan with unlimited data and no throttling)

you spend $1,600 a year on insurance. I spend $1,200 for full coverage with rideshare rider

You spend $1,800 a year on repairs. I am at 175,000 miles and have been fortunate enough to have ZERO repairs.

If you are spending $40,000 on a rideshare vehicle, you are beyond help.

income taxes and social security are not a vehicle expense.

in summary, I maintain my position that if your costs of owning and operating a vehicle are anywhere near $.625 you are doing something horribly wrong and need to find another line of work. You just pointed out where you are going horribly wrong.

Oh, I have no debt and enough money in my savings account to buy at least a half dozen rideshare vehicles at your crazy cost of $40,000 each.
 

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709 Posts
Discussion Starter · #10 ·
How are your phone, car wash, taxes vehicle operating expenses? They're business expenses but not vehicle operating expenses. I don't need a phone to drive a car.
I consider car washes a vehicle expense. Phone is a personal/Uber expense. Taxes are a personal expense. This poster has been spewing these numbers for a long time. Either inflating the numbers or really that bad at understanding how to do Uber as a business.
 

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8,597 Posts
Add your operating expenses and your business expenses that deal with Uber together. What is that number?

Is it above or is it below the 62.5 cents the government is allowing?


If it's below, why would you itemize everything and do actual expenses and lose money?

If it's above, itemize everything individually and get paid correctly.
 

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Discussion Starter · #12 ·
Add your operating expenses and your business expenses that deal with Uber together. What is that number?

Is it above or is it below the 62.5 cents the government is allowing?


If it's below, why would you itemize everything and do actual expenses and lose money?

If it's above, itemize everything individually and get paid correctly.
If it’s above, find another line of work.
 

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Discussion Starter · #14 ·
Do you know what the figures are if you bought a brand new say Escalade to do Uber the first year with it?


Yeah yeah don't give me this crap about buying a new vehicle to do the job. Let's stick to actual numbers.
If you buy a brand new Escalade to do Uber in these economic conditions, you are beyond reasoning and I wish you lots of luck.
 

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off topic some , but tax related. say you buy a wheel chair van, its 40k ..tax pro will let you deduct it on a sliding scale...also 2 many here talk taxes , know very little.
my advice now just 3 years of 9.. pay a tax pro , unless you are just uber x..straight foward..
a good example when not to use turbo tax . 5 kids- wife works w2. you got 5 different 1099 misc-or k's .. so much room for error..like if you are LLC you wont pay 12.5 self employment taxes..but with my tax pro .. she says its not worth it for me.
we are all different.. what if you broke retirement during covid- pay child support. MY ADVICE IS STICK TO DRIVING..KNOW YOU COST'S TO OPERATE
 

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OP is talking about the real out of pocket cost to do uber/lyft per mile, i call that my personal Cost CPM,
i see members here adding everything 100% of to do a tax CPM and then say that is my real cost of doing uber/lyft

tell me this, most doing uber/lyft will need a car doing uber/lyft or not,
if not doing rideshare most will have a normal job, so why is many here including the cost of insurance
as a out out of pocket cost of doing rideshare, you will pay for insurance uber/lyft or not,

if your car is not 100% used for uber/lyft then the insurance cost is not a out of pocket cost due to uber/lyft

and i am NOT saying don't add it to your TAX CPM, i am talking about your personal CPM.
 

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If you buy a brand new Escalade to do Uber in these economic conditions, you are beyond reasoning and I wish you lots of luck.
That statement right there shows you absolutely know nothing of this business.

Anybody that's buying a new vehicle like a Escalade to do Uber is not doing just uber. Seeing how it's a black car with commercial insurance, you will also have private clients and other avenues or apps to work within.
 

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That statement right there shows you absolutely know nothing of this business.

Anybody that's buying a new vehicle like a Escalade to do Uber is not doing just uber. Seeing how it's a black car with commercial insurance, you will also have private clients and other avenues or apps to work within.
don't know anyone would buy a new car for rideshare, i buy a 2017 lincoin MKZ Hybird only 44,000 miles on it - why a MKZ,
i can do Lyft LUX at $1.80 + $0.30 per mile
 

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Discussion Starter · #19 ·
That statement right there shows you absolutely know nothing of this business.

Anybody that's buying a new vehicle like a Escalade to do Uber is not doing just uber. Seeing how it's a black car with commercial insurance, you will also have private clients and other avenues or apps to work within.
The key words you glossed over were “to do Uber” but I get that you are just looking for confrontation.
 

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The key words you glossed over were “to do Uber” but I get that you are just looking for confrontation.

Yep I totally glosed right over it didn't even take in consideration. However, notice the quote below.
Anybody that's buying a new vehicle like a Escalade to do Uber is not doing just uber.
 
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