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Uber bill format for Accounting

hey guys welcome back to our daily tax update on tax attorney Joshua sells uh with uh for the tax law guy YouTube channel and today I wanted to talk about uh tax deductions for Uber drivers now of course this obviously applies to to Lyft or any of those other uh uh ride share drives uh and so I want to talk to you about the the most common tax deductions for Uber drivers and so today we're going to look at seven of those uh because we do get a lot of calls uh we this is obviously something that has exploded in the last couple years uh there are Uber drivers Lyft drivers everywhere and so uh we want to look at the seven most common tax deductions we'll get to number seven which is obviously the big one uh and at the end but the the first one we want to talk about tolls uh obviously if you are doing any amount of driving on the highway you may encounter tolls those tolls are absolutely tax deductible make sure that you you uh when you pay those you do get that receipt scan that into your system save that receipt note it in your account that absolutely is tax deductible you may say well wait a minute what if my would we pass that cost along to the the rider no problem that uh that what they pay goes in Revenue uh so if it's a 30 ride plus a 10 toll forty dollars of Revenue uh and that and then that toll would get deducted off as an expense uh so it is still a deduction uh so tolls make sure you get those number two parking uh how many times have you had to uh uh uh park at the airport or maybe a parking lot and pay that uh paid that parking uh fee those are deductible so make sure you keep that documented take a picture of it put it in your filing system however you have to record that but parking fees absolutely are deductible about the fees that Uber charges or any of the other programs obviously you'll get the net amount when they release the funds to you but they take off a certain percentage of it that is an expense so you would want to report the gross amount that you receive or that you charged really less the expenses any of those fees that are that the provider that Uber or Lyft or any of the other providers would charge those are absolutely a deduction okay uh what about your mobile phone now this is tricky because obviously we may use those mobile phones for personal use my recommendation you want to be absolutely audit proof get a separate line for your Uber business they're not that expensive but get a second line you need to separate the personal and the business there there are some tax court cases out there that if it's a personal line and you would have had that personal line even if you didn't have the Uber business that you cannot include that so it's a lot easier to say hey I got a second line uh specifically for my Uber business so you'll want to make sure that you get that second line make sure even a better scenario make sure it's in the business name if you have one if you don't having two lines is fine as long as you've designated that line as your Uber specific mobile phone number five hey I've had some great Uber drivers over the year and years when they have some snacks and water that they give me when I get in the car I love it that's a five-star rating right there assuming the drive goes well but if you buy snacks and water and you know a little knickknacks to put in the car for uh for your Riders those are tax deductible don't forget to include those hey you probably went to Walmart Sam's Club something like that to get all that save that receipt because the IRS if they audit you uh showing that you have a Walmart expense on your bank statement isn't going to cut it what was that for were you out buying something for your home or were you buying snacks for the for the car so you want to make sure sure that you save those receipts hey my advice when you go to Walmart to get the snacks for the car separate the transaction Don't put personal items on that receipt for the business items okay keep everything separate see the pattern here separate you want to separate the business and the personal all right then the next one those airport fees hey we know that many of your rides may come from the airport to or from and so any of those fees that you have to pay to the airport absolutely tax deductible you want to make sure you include those finally number seven this is the big one mileage that's your big one you get uh the current rate I think it's around 58 cents per mile remember it's not just the drive it's getting to where you need to go to pick up the person you should not be using a paper mileage app that's 2023 get a mileage program on your phone your business specific phone that is uh and track those miles uh when the moment that you get into your car to start your Uber drives you should turn that mileage up on everything from the point you you leave to when you return home or you end your business portion of the day should be included make sure you document clearly what the business purpose is picking up somebody maybe you went to Walmart to get those snacks put that down that's absolutely deductible too any kind of mileage that's done for the purpose of the business is deductible be very careful it may be easy to go on a personal trip during that time period make sure you uh segregate that on your mileage log that hey that particular trip was personal you don't want to mix those together again make sure you document that somehow again we recommend using a mileage app there are plenty of them on on the uh that you can find in the app store or in the Android app store or the iPhone app store so take a look find one that works for you at document document document that's the only thing that would save you in the event of an IRS audit all right hey hope that was helpful again that those are the top seven deductions for Uber drivers we do get a lot of questions about what an Uber driver can deduct and so we wanted to address that hey if there's a deduction that we did not cover uh that you may be wondering about just drop a question in the comment section below we will look at that and address that to the best of our ability all right hey thanks for watching uh tax law guy for our daily tax updates we'll see you tomorrow