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Can I Deduct Uber Rides?
Here’s what the CPA’s have to say
If you use Uber or other taxi services for business purposes, you can deduct your transportation expenses from your taxable income. But what is a legitimate business purpose?
In this case, Allison is a content creator, and she often has to travel around to attend a meeting or a photo shoot. So if she uses Uber rides to travel around for her business, she can deduct it from her taxes.
However, as a freelancer, if you use Uber for running personal errands, you cannot claim it as a legitimate business deduction
Can I Deduct Uber Rides?
Generally, as a freelancer or an independent contractor you can claim tax deductions for your business travels, this also includes your transportation expenses. However, moving to and fro from your home and your workplace does not count as a legitimate business deduction.
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Can you claim Uber Rides as a business expense?
According to the IRS, you can deduct any expense that is related to your profession as long as it is considered common and helps you in conducting your business. So, if you are out traveling for your business, you can claim a deduction for any sort of transportation expenses, this includes flight, train, bus, or car.
So, in other words, local transportation costs for taxi fares or other transportation between the airport or station and a hotel, or from one place of business to another is also considered as a deductible expense.
Who can claim Uber Rides as a deduction?
To deduct any expense, it must be directly related to your business. If you’re a freelancer and traveling to attend a business event, you can deduct several expenses associated with your trip, Some of the self-employed professionals who can claim Uber rides as a tax deduction include:
Actors/Models:
As an actor or a model, you may have to travel to different cities for auditions, performances, job searches, meetings, and seminars. You can claim a deduction for the transportation expenses on your income tax return, this includes your Uber expenses.
Uber Driver:
If you're an Uber driver and are routinely driving to pick up and drop off passengers, then all the car-related expenses such as gas, oil changes, car washes, and tires will be deductible. Moreover, you can also deduct the commission charges you pay to Uber.
Social Media Influencers:
Social media influencers generally have to travel to different locations for a photoshoot or an event campaign. Here, you can claim your transportation expenses (Uber rides) from your taxes.
Real Estate Agent:
If you’re an independent real estate agent, you may have to travel to and fro from the different property and rental sites. Here, if you rely on Uber to commute from different locations, you can deduct your transportation expenses from your taxes.
Click here to find out how FlyFin can help you to take this as a deduction.
Frequently asked questions
FAQs
Can I deduct the cost of lodging while traveling for business?
As an Uber driver, what sort of expenses can I deduct?
Can I deduct shipping expenses while out on a business trip?
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