4 ms·
The IRS $.56/mile takes into account estimated gas costs, wear&tear and insurance. You are double dipping. Also income tax is deducted off of profits not drive
by evjim 12y ago
The IRS $.56/mile takes into account estimated gas costs, wear&tear and insurance. You are double dipping.
Also income tax is deducted off of profits not driver revenue.
- bane 12y agoYeah you're right. The IRS mileage covers insurance. You can alternately calculate your true expense and deduct that, for example, since he's operating a taxi service, he's probably required to have taxi insurance or risk committing insurance fraud. Since that insurance is much higher than normal car insurance, he probably can deduct more.
- dnautics 12y agoit's not a taxi service, and I have one of the insurance companies that is ok with ridesharing. I am sure they have plenty of actuarial data that allows them to set the rates accurately. I'm not double dipping because I won't be deducting gasoline or insurance expenses as a part of the .56/mi deduction. (I don't keep my gas receipts)
- bane 12y agoSure, uber is not a taxi service in the same way McDonald's is not a restaurant.