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Uber as a tax dodge idea

ErrosionOfAccord

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#1
It just occurred to me to use Uber. I find myself in a position where I am "paying my share" and then some. For the last few years I can't write anything off. Mortgage is too low to make the threshold and I have no personal business. By becoming an uber driver I could write in a home office,my paid off vehicle, computer, and phone. Seems tempting enough to do the research and see if it is indeed worth the hassle.
 

edsl48

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#2
It just occurred to me to use Uber. I find myself in a position where I am "paying my share" and then some. For the last few years I can't write anything off. Mortgage is too low to make the threshold and I have no personal business. By becoming an uber driver I could write in a home office,my paid off vehicle, computer, and phone. Seems tempting enough to do the research and see if it is indeed worth the hassle.
Off the top of my head I think to get an office in home you have to have set aside an area used strictly for and only for business use. Computers and autos have some sticky rules as do telephones. Remember also that when you sell a depreciated item there are recapture rules applicable to the sale.
Just some things to consider.
 

ErrosionOfAccord

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Montecristo

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#6
The idea sounds good. I'm not sure how you could work your vehicle into the equation if it's already paid off, besides taking the millage deduction?
I think as long as you do a couple shifts and show at least a few rides here and there it would work.
 

Joe King

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Sixteen things you can write off. I'm a single man with a three bedroom house, dedicating space isn't an issue. I live in an isolated town of 30,000 with low crime. I could log in at stupid hours and never be called out, or spend a couple of hours on a Saturday night and haul drunk chicks home : )
F' uber, just start some BS "business", make your home office, then only pursue it half-assed (if at all) so you always show a loss you can deduct. I mean, that's what you're really after here, right? A second job with a home office that doesn't involve much if any work, but creates a deduction/write off? Or am I reading this wrong?
 

97guns

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#8
iRS allows .54 a mile for standard mileage d suction, no receipts to show.

I work with DoorDash and wrote off $2200 in mileage deductions on $4800 income, actual numbers, nothing skewed.

With DoorDash they consider you a contract worker, I believe all these app based jobs classify the same
 

ErrosionOfAccord

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F' uber, just start some BS "business", make your home office, then only pursue it half-assed (if at all) so you always show a loss you can deduct. I mean, that's what you're really after here, right? A second job with a home office that doesn't involve much if any work, but creates a deduction/write off? Or am I reading this wrong?
You read it right. I already make a very good living, which is the problem. I pay too much in taxes, like everyone else! I wouldn't be in it to make money as I also think of Uber as a scam. Without the home office it might not be worth the hassle though.
 

Joe King

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You read it right. I already make a very good living, which is the problem. I pay too much in taxes, like everyone else! I wouldn't be in it to make money as I also think of Uber as a scam. Without the home office it might not be worth the hassle though.
Try starting a Foundation. Works for the Clintons.
 

Rusty Shackelford

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#11
Would a loss on a second business result in lower taxes on you successful income stream? Or would you just owe $0 on the second side income? Can you enter a negative number on line 12 of form 1040 (Sched C/CEZ Business income)?
 

Silvergun

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#13
Auto insurance will cost more ...
THIS.

Every Uber I have been in I always ask this question and I always get an "I dont know" answer. Meaning they never told their car insurance company that they are driving for Uber. Sounds like a potential serious problem down the road to me. If you get in an accident and the insurance company finds out you were driving for uber....Good luck paying your own bill. I am always curious to find out what insurance companies charge to cover this (it aint cheap is my bet), but apparently no one says anything at least from my small anecdotal experiences.
 
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97guns

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#14
I make really good use of the mileage deduction for my rental properties that are 140 miles away round trip, that and the host of other deductions I pay around $2000 in taxes on $68k rental income:oriental:
 

Thecrensh

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#15
and THAT shows just how screwed up our tax code is. When you have a business, but operating that business comes will all sorts of loopholes. Flat tax now. No loopholes.
 

Joe King

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and THAT shows just how screwed up our tax code is. When you have a business, but operating that business comes will all sorts of loopholes. Flat tax now. No loopholes.
One reason it is the way it is, is that the current tax code allows the gov to reward activity they want more of, and to punish activity they want less of.

For example, business deductions have the effect of offering an incentive to people to start new businesses. If there were no deductions for businesses, we as consumers would probably have less choice in the market place and pay higher prices.
...and IMHO, I don't think that any business should pay any income tax, because it's impossible for a business to pay tax without passing the cost along to their customers in the form of higher prices, lower wages for employees and lower quality products.

Companies pass along the tax bill same as they pass along their all their other expenses. If all their costs are not accounted for in their business model, they'll just end up going out of business.
 

Agavegirl1

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#17
Uber actually charges the driver certain fees which are deductible. Your mileage for Uber is tracked by the App. The standard Mileage Rate is deductible to you. There are minimum standards for your vehicle. You will receive a detailed 1099K which is reported to the IRS and must be reported on your tax return.

I am trying to post a sample...I'll see if this works. Okay.

So all third party payments are reported to the IRS. The fees paid to Uber are expenses. There are other expenses besides mileage you can deduct. A home office for Uber would raise red flags. Your "office" is your car for the most part. Your phone, however is an essential tool and an obvious deduction. Washing your car and having it detailed counts too. There are specific tax tools I have for the "Gig" economy such as Uber, Lyft, AirBNB, Home Away etc. that we focused on in preparation for TS17 which stands for Tax Season 2017.

http://quickbooks.intuit.com/r/driver/tax-help-uber-drivers-file-uber-1099/
 

edsl48

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#18
If you buy a new vehicle don't forget to claim the investment tax credit that would be determined by the ratio of business usage to total usage.
 

edsl48

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#19
THIS.

Every Uber I have been in I always ask this question and I always get an "I dont know" answer. Meaning they never told their car insurance company that they are driving for Uber. Sounds like a potential serious problem down the road to me. If you get in an accident and the insurance company finds out you were driving for uber....Good luck paying your own bill. I am always curious to find out what insurance companies charge to cover this (it aint cheap is my bet), but apparently no one says anything at least from my small anecdotal experiences.
I would imagine that the additional coverage would be very expensive in our lawsuit riddled society. One accident could wipe out a lifetime of savings and assets just to pay the legal bills. My wife is constantly complaining about the insurance bills on our rental properties that, under further investigation, turn out to be attributable to public liability coverage.
 

Flight2gold

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#20
Probably be a good idea to install a interior camera for your fares.
Drunks tend to want to fight you or throw up.
 

GOLDBRIX

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#21
How are YOU gonna dodge taxes via Uber when Uber gets paid and then Uber pays YOU ?
 

ToBeSelfEvident

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#22
2017 mileage is $0.535 per mile.
I could not figure out how to take the mileage deduction. I have a spreadsheet showing every work mile I drove, but the IRS forms were all about VIN numbers, placing vehicles into a "fleet", then estimating the % of driving that was for business, etc.

The "home office" deduction is almost impossible to claim. We have TWO home offices and don't even bother trying to take the deduction.
 

GOLDBRIX

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#23
I could not figure out how to take the mileage deduction. I have a spreadsheet showing every work mile I drove, but the IRS forms were all about VIN numbers, placing vehicles into a "fleet", then estimating the % of driving that was for business, etc.
It has been DECADES since I dealt with MILEAGE deduction. I guess along the way the IRS bean counters found their calling at making Simple into Difficult.
 

Rusty Shackelford

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#24
I could not figure out how to take the mileage deduction. I have a spreadsheet showing every work mile I drove, but the IRS forms were all about VIN numbers, placing vehicles into a "fleet", then estimating the % of driving that was for business, etc.
What form were you using? Pretty easy in Schedule C. Line 9 enter the value of your miles drive time .54. Just have a record of what you drove. Can't get much easier