Uber/Lyft Business

As the Uber and Lyft community are continuously growing, tax questions come into play. It’s an easy way to make money and create your own work hours. That’s two great advantages wanted in any job! The downfall is, of course, taxes will come due on all that earned income.
Since a vehicle is a necessity, it is assuring to know that you can deduct some expenses to lessen the tax hit. You have two method options, Actual Expense Method or Standard Mileage Method.
Under the Actual Expense Method, you can deduct actual expenses like gas charges, wireless phone plans/accessories, repairs/maintenance and insurance. These are all of course limited on the percentage of business use vs. personal use. This method requires strict record keeping.
Under the Standard Mileage Method, you deduct $.535 (for 2017) per mile used for business use. This is favored sometimes because you don’t have to have in depth record keeping. Just keep track of miles used while working.
Depending on how much time is spent “Ubering” or “Lyfting” will determine which method is more advantageous. We all want the bigger tax deduction!