Tax Deduction in Vehicle Use

[Baikuntha]

Thank you for your responses but I do need to clarify something as things have changed:
1) Uber Driving: My wife is titled owner of the new vehicle & I'm added as a registered driver in the auto insurance. Since we file a joint tax, can we deduct the car-downpayment & monthly payments as an itemized deduction for Uber driving? I do not plan to change the private vehicle no. to a livery/taxi plate.
2) Real Estate driving: I will not be transporting my real estate clients for house showings as they just meet me at the houses I'm showing (transporting clients has never been my plan). Can I deduct 58 cents/mile for real estate driving & do itemized deduction for Uber driving? If not, how should I present this to the IRS for better deduction? Thank you so much!

 

[Taxing Matters]

Thank you for your responses but I do need to clarify something as things have changed:
1) Uber Driving: My wife is registered owner & I'm added as a registered driver in the insurance. We filed joint tax.

You still have the problem that you don't own the vehicle. Being an authorized driver on her insurance doesn't give you any ownership in the car. And if you don't own the vehicle that will limit your options in terms of tax deductions.

Also, are you sure that the insurance you have will cover you for the Uber rides? If you don't have the insurance Uber offers its drivers then you better be darn sure the other insurance you have will cover it.

 

[LdiJ]

Thank you for your responses but I do need to clarify something as things have changed:
1) Uber Driving: My wife is registered owner & I'm added as a registered driver in the insurance. We filed joint tax.

That still does not put you in a position where you can claim tax deductions for the car. You didn't take out the loan and you don't own the car.

The only thing that you can do at this point to make it work, is to set up a formal lease between you and your wife, where she leases the car to you. You should probably get an attorney to draw up the lease.

 

[Baikuntha]

That still does not put you in a position where you can claim tax deductions for the car. You didn't take out the loan and you don't own the car.

Can I just do mileage reimbursement for the Uber driving though? I will check with Uber about their insurance policy (they're still reviewing my application).

 

[Taxing Matters]

Can I just do mileage reimbursement for the Uber driving though?

In order to deduct vehicle expenses using the standard mileage rate when you are self-employed you need to own or lease the vehicle.

You could still deduct the actual gas and other expenses of operating the car with the set up you have now (though only the portion attributable to the business driving) but you'd get no depreciation for the car.