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.

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.

Remember, we work for you, not for the IRS. Many of our clients save many times the fee in reduced tax liability through careful planning and legitimate tax strategies.