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Uber Drivers and Standard Mileage Deduction

Uber Drivers and Standard Mileage Deduction

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Jan Hrdlicka EA sent us a question that we hope one of our community members can answer. Here's Jan's question:

Are Uber-style part-time "taxi" drivers able to take a standard mileage deduction, or are they subject to full-time taxi driver rules that require an actual expense deduction and depreciation?

 

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By profpat
Aug 17th 2015 19:08

Looks like the limitation on use of the standard mileage rate on taxis went away starting in 2011. Unless I have missed something more recent. So, Uber drivers should be able to use the standard mileage rate.
Per
Cash Intensive Businesses Audit Techniques Guide - Chapter 17 Taxicabs
Revision Date - April 2010
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Cash-Inte...

Revenue Procedure 2010-51, 2010-51 I.R.B. 883. Removed the limitation on the use of the standard mileage rate for "automobiles used for hire, such as taxicabs" effective 1-1-2011. The change is not retroactive. Revenue Procedures applicable to previous years prohibited the use of the standard mileage rate for automobiles used for hire, requiring these taxpayers to use actual costs.

Pub 463
Standard mileage rate not allowed. You cannot use the standard mileage rate if you:
Use five or more cars at the same time (such as in fleet operations),

Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Depreciation Deduction),

Claimed a section 179 deduction (discussed later) on the car,

Claimed the special depreciation allowance on the car,

Claimed actual car expenses after 1997 for a car you leased, or

Are a rural mail carrier who received a qualified reimbursement. (See Rural mail carriers , earlier.)

Note.

You can elect to use the standard mileage rate if you used a car for hire (such as a taxi) unless the standard mileage rate is otherwise not allowed, as discussed above.

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Replying to profpat:
Jason Bramwell
By Jason Bramwell
Aug 18th 2015 14:35

Thanks for your input, profpat!

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