Author Topic: Buy Luxury car for UberSelect, just to write off miles?  (Read 513 times)

teltic

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Buy Luxury car for UberSelect, just to write off miles?
« on: June 03, 2019, 10:49:36 AM »
https://www.youtube.com/watch?v=ui9Q-sqXhgg
TL:DR = He bought a Tesla 3, signed for uber, and does uber-premium when he drives.  99% of the time he doesn't get any request, and he writes off $0.58 per mile going to wherever he is driving.  Even when he gets uber requests, it's worth it because he earns about double the regular rate (he claims to make more in tips too).



National average is 10k miles annually, so if you did this 100% of your miles, that's $5800 you deduct.

Meaning I save $5800 in taxes, or $5800 * tax rate?

Thoughts on this idea? Could I buy a $25k used 2013 Tesla Model S and then write off $5800 a year?

Cromacster

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #1 on: June 03, 2019, 10:58:11 AM »
What about insurance?  Average consumer auto insurance does not cover rideshare.  And I believe uber/lyft only covers you when you have a passenger (or enroute).

If are driving around with the app open and get in a major accident, it could get pretty messy.



teltic

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #2 on: June 03, 2019, 11:01:55 AM »
What about insurance?  Average consumer auto insurance does not cover rideshare.  And I believe uber/lyft only covers you when you have a passenger (or enroute).

If are driving around with the app open and get in a major accident, it could get pretty messy.

https://www.uber.com/drive/insurance/

You are insured by Uber when waiting for a ride request.


ketchup

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #3 on: June 03, 2019, 11:25:08 AM »
I drive way more than 10k miles/yr due to a clown commute.  Hmm.

mlipps

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #4 on: June 03, 2019, 11:41:09 AM »
From a tax perspective, this seems dubious at best. IRS looks very carefully at people claiming to operate a business (filing a schedule C, as one has to do for Uber expenses) and claiming a loss continuously. I can't imagine they wouldn't see this as fraud since the person clearly has no real intention to be an Uber driver.

Rcc

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #5 on: June 04, 2019, 09:24:32 AM »
From a tax perspective, this seems dubious at best. IRS looks very carefully at people claiming to operate a business (filing a schedule C, as one has to do for Uber expenses) and claiming a loss continuously. I can't imagine they wouldn't see this as fraud since the person clearly has no real intention to be an Uber driver.

First wanted to say this ^^^. My memorized rule of thumb, was IRS would declare your business a hobby if you didnt show a return in 3-5 yearsish.

With that said, this how I paid for my current daily driver. After trade in, I only put 7.5k cash into it. After plotting with the wife to check my numbers - I signed up for Uber and "sold" the IRS roughly 22k miles across two tax years. Since I had plenty of taxes paid via our W2 jobs, I cut my tax bill nicely in those two years.

However, would I try that with a Model 3? or a Model S? Ignoring the insane # of miles you'd have to put on the cars you still have tires to deal with. Further, thinking it through - if I wanted to generate a $300 "loss" per day thats 500ish dead miles to put on the car and at least two battery charges (which eats into your driving time quite a bit).

Ignoring the Tesla models - there are plenty of used sedans that would "qualify" for Uber Select that would cost less than 25k used.

I'd love to hear how this works out in a year :)

Rcc

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #6 on: June 04, 2019, 09:31:55 AM »
Wow. Didnt catch the fact the guy posted a VIDEO of what hes doing. Watched it.

Again, WOW. He explained it, on youtube. Hes technically right, but he is absolutely inviting the IRS to give him a call.

teltic

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #7 on: June 04, 2019, 09:48:41 AM »
He does accept Uber rides though when they come... Because they are worth it for premium customers.

Digging around, Uber/Lyft does allow you to set a destination you are trying to get to.  So there is potential of doing this with my 2013 Hyundai Elantra whenever I'm trying to go further than 15 miles from my house.  I'll probably get customers along the way, if it they truly are going the same direction as me... I wouldn't mind taking an extra half hour to get somewhere if that meant mile write offs plus ~$20.  I may sign up with Uber to test this out.

Rcc

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Re: Buy Luxury car for UberSelect, just to write off miles?
« Reply #8 on: June 04, 2019, 10:04:13 AM »
He does accept Uber rides though when they come... Because they are worth it for premium customers.

Digging around, Uber/Lyft does allow you to set a destination you are trying to get to.  So there is potential of doing this with my 2013 Hyundai Elantra whenever I'm trying to go further than 15 miles from my house.  I'll probably get customers along the way, if it they truly are going the same direction as me... I wouldn't mind taking an extra half hour to get somewhere if that meant mile write offs plus ~$20.  I may sign up with Uber to test this out.

Yeah destination filter comes on and off periodically in my region. I used it to avoid rides :) In my day, some days I'd do select only, and occasionally uberX just to get moving. Give it a whirl, would love to hear your experiences.