Uber/Lyft Drivers Maximize Your Tax Deductions

When you use your personal auto to drive for Uber/Lyft certain expenses must be allocated between business use and personal use. The amount deductible is based on a percentage generally calculated by dividing the total deductible miles for the activity by the total miles the vehicle was driven for all purposes during the year. Only the business portion of the following items of expense paid by a driver,  or collected by  Uber/Lyft on the driver’s behalf, can be deducted.

  • Uber Fuel Card Fees

  • Property Taxes

  • Interest on Auto Loans

  • Lease Payments*

  • Fuel, Oil, and Tires*

  • Repairs and Maintenance (including car washes)*

  • Insurance*

  • Registration and Tags*

  • Parking

*Expenses that are covered by the standard mileage rate, and therefore not deductible in addition to the amount deducted based on that rate.

 

Fully-Deductible Expenses

The following items of expense paid by a driver, or collected by Uber/Lyft on the driver’s behalf, are fully deductible as a business expense.

  • The Uber Fee

  • Uber Provided Device Subscriptions

  • Tolls Incurred During  On-Trip Mileage

  • Sales Tax Collected

  • Black Car Fund Fees

  • City Fees

  • Airport Fees

  • Split Fare Fees

  • Safe Rides Fees

Refreshments provided solely to riders. Items you consume are in most cases nondeductible.

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