THE ACCOUNTANT'S CORNER

December 1, 2017

Tax Deductions for Uber and Lyft Drivers

Written by, Robert Clark
Uber Driver

Uber and Lyft Driver Tax Deductions

Now that Uber and Lyft are here in Key West, they will need local drivers.  These drivers will be able to take certain tax deductions based on being an Uber driver. I’ve listed a few of these here, however, discuss these with your CPA before actually taking the deductions.

  1. Mileage or Actual Costs of using your vehicle to drive for Uber. Because Key West is so small, it may be more advantageous to use Actual costs instead of mileage. Some actual costs are:
    1. Gas
    2. Maintenance
    3. Depreciation
    4. Insurance
    5. Registration fees
  2. Interest on your car loan (this may be limited depending on how much you use the auto driving for Uber and how much you use it for personal use)
  3. Cell Phone - Because passengers contact you via a cell phone app, your cell phone is a necessary business expense. Talk with you tax professional regarding how much of this cost is deductible.
  4. Cell Phone Plan - see above
  5. Uber fees - Any fees you pay to Uber and Lyft are tax deductible
  6. Parking fees - All parking fees you incur in Key West, while working, are tax deductible.
  7. Car wash-Because Uber and Lyft have certain cleanliness standards, car washes are deductible.
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