I am curious if this is truly legal. I went to a local REIA meeting last night. When i arrived this newer looking Chevy Colorado Zr2 diesel pickup pulled up next to me in the parking lot at the same time as i was parking. I asked him if he was here for the REIA just trying to be friendly and he stated he was, but shortly after his phone went off and told me one second he had to log off the UBER app. So i just thought he was a uber driver on the side for extra money and i asked how profitable it was for driving a 4x4 truck for uber just out of curiosity. He mentioned he had no clue really, he stated he only uses it for tax purposes. So out of being intrigued i asked what did he mean, care to explain. He stated that he logs into the uber app when he leaves home, and when he arrives where he is going he logs out. This gives him a taxable log of him using the truck for business use while he travels to destinations he wants to go, for example the REIA meeting. He said the app will notify you when there is a ride available to take, but he just ignores them while he drives and only a handful of times he has taken a customer, purely because he noticed they were going to the same area he was driving to, basically along his route.
I have never written off my vehicle on my taxes, because i share it for both personal and business use, but is this truly a way to go about it? He said he uses this for when he is driving to and from his W2 job during the week, so his truck is "95%" business use.
Also he stated that the Chevy truck he had is rated at 6,000lbs, so it allowed him to deduct the cost of the vehicle on his taxes over 5 years along with bonus deductions.
It is legal, because the Uber business is taxi, so he can write off his truck for that business.
If you're self employed, you can write off the mileage on your business, but if your W-2 there is no deductions.
That's smart....too much hassle but smart
@William Huston My guess is that is tax fraud. if you keep a log of your miles you can deduct a standard mileage expense base on the number of miles you drive for business. I only have one vehicle but I make a deduction every year for mileage.
Edit: He is not in the Uber business it is a sham simply to be able to claim more expenses. If he gets caught my guess is that is not going to fly.
Interesting, i was doing some quick searches.. on the uber site there is a FAQ and under that this statement is listed...
"For example, if you go online with your Uber app at home in Oakland, but drive to San Francisco before you get your first passenger, you can calculate how many miles you drove to the city and include those in your tax deductions."