Blog Archive

RIDE SHARING BUSINESS

Posted on January 31st, 2018 by Hwesu | No Comments

In just about every circle of friends in a major city, someone you know drives for Uber, LYFT or a 3rd party company for Amazon.

The income earned from these ride sharing services is reported on form 1099-MISC. These companies report the financial information to the IRS without withholding taxes and require the individual driver responsible for reporting their expenses. We have identified a few expenses to consider when creating your tax worksheet for your tax preparer. These deductions are both valid and allowable expenses for contract drivers. Review the list below and begin gathering your documents:

1. AAA Member – Annual membership
2. Cell Phone Charger
3. Cell Phone Monthly Bill – % is allowed as a deduction
4. Mileage – You must track the total miles driven for the year to claim deduction for the UBER/LFYT Miles
5. License, Insurance and Registration
6. Meals: purchased and consumed while your working or during your rest period
7. Gas
8. Depreciation
9. Parking
10. Internet Fees
11. Accounting and Tax services

These expenses are “real” and you must be ACCOUNTED FOR in order to be claimed on your taxes:

Let’s schedule a initial session to discuss your accounting and tax options and make sure that you are claiming all your expense deductions on your 2017 taxes.

Business Deduction – Home Based Business

Posted on September 19th, 2016 by Hwesu | No Comments

For home based businesses, the primary residence usually serves a dual purpose as the home for the owner and the principal place of business. The home also represents the largest cash deduction for the homeowner and potentially the largest expense for the same business owner, In order to claim the rent or mortgage paid, the following criteria must be considered when determining tax deduction for the business:

Continue reading “Business Deduction – Home Based Business” »

Deductions for UBER and LYFT Drivers

Posted on August 08th, 2016 by Hwesu | No Comments

In just about every circle of friends in a major city, someone you know drives for Uber, LYFT or both companies as source of income. We can now all agree that UBER and LYFT drivers are here to stay.

The downside to driving for UBER or LYFT is the reporting of income as a 1099 subcontractors. Both of these companies report the financial information to the IRS without taxes and make the individual drivers responsible for tracking of their expenses. Below are a few expenses to consider when creating your tax return file for your tax preparer. These deductions are both valid and allowable expenses for contract drivers for UBER and/or LYFT. Review the list below and begin gathering your documents:

These expenses are “real” and you must be ACCOUNTED FOR in order to be claimed on your taxes:

Let’s schedule a initial session to discuss your accounting and tax options and make sure that you are claiming all your expense deductions on your 2016 taxes.

Business Expenses

Posted on August 18th, 2015 by Hwesu | No Comments

When considering business expenses it is important to understand the following:A “write off” doesn’t mean that expenses is free, it only means you can reduce your taxable income and reduce the amount of taxes owed to the IRS and State.