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My Accountant and I had that exact same argument with an IRS Auditor, this was the Auditor's last stand, since he already lost all previous ticks on my 2017 taxes. He swore this is where he would get some extra money for the Fed coffers from me. After shuffling papers and reading the same three lines, five or six times, he called in his supervisor, who read the lines and said an overnight stay is not a requirement, just away from home and unable to be at home during, while on a business activity. The example is misleading in the IRS manual, purposely. Also a meal while talking about business with someone who has the same type business (even if it is one block from your house), is deductible, just make notes of what was discussed, time, date and receipt. So a meal with another driver, a couple times a month, is not out of the realm of a deduction...
Sure, but do you really want to have that fight, over your deducting a few Big Macs? It's absolutely not worth it.
 

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Sure, but do you really want to have that fight, over your deducting a few Big Macs? It's absolutely not worth it.
Steak or Seafood Houses only, I drove the Jersey Shore areas only, meet 1 or 2 times a week with other drivers to discuss where the action was, upcoming weddings or events, and everything to make an extra buck while driving. Having a fine dinner was a perk, having the Fed pay 50% of it, so it was like paying for a hoagie or fast food, perk on steroids...

Plus it makes you feel better while driving...
 

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Steak or Seafood Houses only, I drove the Jersey Shore areas only, meet 1 or 2 times a week with other drivers to discuss where the action was, upcoming weddings or events, and everything to make an extra buck while driving. Having a fine dinner was a perk, having the Fed pay 50% of it, so it was like paying for a hoagie or fast food, perk on steroids...

Plus it makes you feel better while driving...
A. If you're buying steak to meet with other drivers to talk about rideshare, you're not doing this gig for the money.

B. No, the IRS isn't paying for half of it. Let's do some math...

Let's assume for the moment, generously, that you're in a 37% tax bracket. Plus some self employment tax, so you might be close to 50%. Maybe.

Now, you may or may not be aware that the deduction is only 80% of the cost of the meal. Meals don't get deducted at full price.

So your deduction is equivalent to 40% then. At the most.

Like I said, if you're enjoying steak and lobster to talk with other U/L drivers, you're clearly not doing this gig for the money.
 

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A. If you're buying steak to meet with other drivers to talk about rideshare, you're not doing this gig for the money.

B. No, the IRS isn't paying for half of it. Let's do some math...

Let's assume for the moment, generously, that you're in a 37% tax bracket. Plus some self employment tax, so you might be close to 50%. Maybe.

Now, you may or may not be aware that the deduction is only 80% of the cost of the meal. Meals don't get deducted at full price.

So your deduction is equivalent to 40% then. At the most.

Like I said, if you're enjoying steak and lobster to talk with other U/L drivers, you're clearly not doing this gig for the money.
Everyone has to eat, why pinch pennies and eat poorly. Your math needs much improvement and an understanding of tax code, you have it backwards. Revisit your math and a tax consultant, maybe you will start eating well, in the future...

What may just be a Gig to you, is a business to many, with all the perks a personal business can offer. I will bet no one has explained the reason you should apply for a "business credit card" for your business and treat it much different than a "Gig".
 

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Your math needs much improvement and an understanding of tax code, you have it backwards.
Hogwash. I understand the tax codes perfectly well.

You just think that somehow you're getting a real benefit from all this. And you want to say that somehow the US taxpayers are paying for your steak dinners.

News flash: They're not.

At best, you're getting your steak and lobster at half price.

As Heinlein said it: There Ain't No Such Thing As A Free Lunch.
 

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You just think that somehow you're getting a real benefit from all this. And you want to say that somehow the US taxpayers are paying for your steak dinners.
Wow, you read way to far between the lines on that one. Maybe you should reread the exchange...
 

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A tax deduction only means you don't pay taxes on what you spent.
Close but no cigar, you reduce the income on which you pay taxes. Like I said, you have to eat anyway, where did I say the whole cost of the meal, I believe I said 50%, but it is actually more than that.. The more you reduce your income, the less you pay...
 

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I believe I said 50%, but it is actually more than that
You said that, but that doesn't make it accurate.

You get to deduct 80% of the cost of applicable meals. And then apply your tax rate to that.

So, what's your tax rate, Bubba? Are you going to tell me that you're in the highest tax bracket. I'm not.

But let's go back to something else. Let's say you're deducting 100% of the cost of those meals. Do you really want to have that fight with the IRS? You know as well as I do that the IRS doesn't fight fair.

They'll lock up your bank account faster than you can type out a reply to this message, if they really think they've got something on you. And then dare you to try to get it back.
 

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Besides i heard renting is now $300 a week as cars as low. BUT YOU ALL NEVER THINK OF 1 THING..IF RENTING..BAD IDEA BUT..
rent an XL ONLY VAN. as u can get xl rates daaaaaaaaaaaaaaaaaaaaaaa
 

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Besides i heard renting is now $300 a week as cars as low. BUT YOU ALL NEVER THINK OF 1 THING..IF RENTING..BAD IDEA BUT..
rent an XL ONLY VAN. as u can get xl rates daaaaaaaaaaaaaaaaaaaaaaa
It has been a few months since I travelled and rented a vehicle.

But when I did, vans were about the cheapest thing you could rent.
 

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Besides i heard renting is now $300 a week as cars as low. BUT YOU ALL NEVER THINK OF 1 THING..IF RENTING..BAD IDEA BUT..
rent an XL ONLY VAN. as u can get xl rates daaaaaaaaaaaaaaaaaaaaaaa
I actually rent out minivans for rideshare use, I can tell you, without question a retail rental is the worst possible way to do rideshare. It is not just the drag on earnings, a bad week will take 3 or 4 to knock out the losses. You may hit a teaching week where the AI starts to train you who is boss and she will starve you out. When you rent you feel pressure to take rides that you would normally decline [ever been a drug mule?], also if you do decline, you may also get skipped on pings because you are an unreliable driver for good riders. Beg, Borrow, or Steal before renting...

If you are going to drive 7 days/nights a week to pay for a car, buy one new, then start a personal business and rent it back to yourself so the payments are deductible and the business gets to write down costs. You will file 2 schedule c's and your credit will expand, make sure you get business credit cards for both your businesses. You might like renting cars and start buying old Caravans and renting them out to RS suckers who have no clue...
 

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Well thier are some examples of great rentals and leases. I did a 36 month unlimited miles lease on a $48.000 wheelchair van I got brand new. $1000 or so a month. .dodge caravan.
It was the best lease in the world . X xl. Wav.DTS sat nt killer in summer. Never stress to make payments. I cried when I had to turn it in at 36 months.no buyouts. Pa law.
Got it with 7miles on it. Put 101k on it orginal brakes.
After 50k miles on it I paid $70 a month for extended warranty. Used it 1 nice sweet time.
2 sets of new tires. What a steal .
My new cash one 19 gt. Brought used and took direct to factory to convert. Cost me some cash. But still worth it.
Sucks on gas
 

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When you rent you feel pressure to take rides that you would normally
The plus side is that if the rental comes with unlimited mileage, the cost per mile is low, just gasoline. So there are a lot more trips that would be worth taking.

There's no free lunch, though. You'd be paying a BIG chunk of money up front for that.
 

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Yes. One catch though. You have to drive 16 hours a day to make any real money. Try that. All I can tell you is I get sick of it after about 3.
 

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The plus side is that if the rental comes with unlimited mileage, the cost per mile is low, just gasoline. So there are a lot more trips that would be worth taking.

There's no free lunch, though. You'd be paying a BIG chunk of money up front for that.
One of the things that makes RS profitable is mileage depreciation, which allows you to pay less taxes and keep more of what meager money you do earn. You do not have that with a rental vehicle...
 
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nobody actually tells others strategy! Jeepers! beg, borrow, rent, lease...whatever! have a plan! realize how you can profit on the incentives! IF there is a 10/10 incentive...how are you going to plot out your area? short trips are best. So, do you know what itme of day and where you can always get those? know where and when to avoid turning on meter! how can you be sure you get good reviews? what are key phrases/topics to get that empathy and a 5 star or no rating (thus 5 star) from a passenger? do you know how to print "Cash Tips Accepted" on a card visible to riders?
 
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