Continuing our list of Rideshare Operator deductions, here are 5 MORE tax deductions you need to know about:
Tolls and Parking
Whether you pay for tolls in cash or by a transponder (like EZPass), your tolls while a rideshare operator are deductible.
If you have to pay to park (while waiting for a ride, or fees to wait at an airport, these are also deductible.
For both tolls and parking, the only expenses that are deductible are those while actually performing rideshare services. Parking at an airport while you are on a trip doesn't count.
Advertising (Logos and signs on your vehicle)
Anything you do to advertise your rideshare operation could be an expense. These items could include:
- A full wrap for your vehicle
- "Car Hats" - magnetic signs for the top of your vehicle
- LED "Uber" or "Lyft" signs for your windshield, bumper, license plate, or side/back windows
- Bumper stickers
- "Tip/Five Star" accessories that hang on the back of your front seats
- "Must Wear Seatbelts" signs
- business cards
Advertising can be very creative. If you have something else that you use for advertising and aren't sure if it is a business expense, just send us a note and ask!
If you lease your vehicle, you can deduct a portion of the lease payment. This is based on the amount of mileage you use your vehicle for rideshare services.
If half of your mileage is for rideshare, and half for personal use, then 50% of your lease payment is a valid business expense.
Personal Property Tax
Not all localities have personal property tax, but if you do, take advantage of this deduction.
This is like the lease payments, above.
If half of your mileage is for rideshare, and half for personal use, then 50% of your personal property tax payment is a valid business expense.
Just like the deductions above, this is based on the percentage you use your vehicle for rideshare activities.
If half of your mileage is for rideshare, and half for personal use, then 50% of your AAA or roadside assistance plan is a valid business expense.
In addition, if you have to call AAA or other plan while performing rideshare activities, then any expense you incur is 100% deductible.
You didn't become a rideshare operator to do taxes; Hampton Roads Accounting is here to help. Please contact our office to have a tax professional, experienced with Rideshare Operators, prepare your tax return.