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Is it possible to take the mileage for car expenses and at the same time depreciate the car for an uber or lyft driver?
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No. Actual expenses or cents per mile.
Depreciation is included in the cents per mile rate.
The more I know the more I don’t know.
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You can probably make the software do it, but it would be a mistake on a preparer's part to be a party to filing a return that way.
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Any IRS reference that it is not allowed?
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On second though - I removed my comment. Good luck.
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Are you a tax professional?
I don't mean any offense, but this is VERY basic knowledge for a tax professional that prepares a tax return with self employment. If you are not familiar with this very basic information, you may want to turn down this client until you have had a chance to learn more about how to report self employment income and expenses.
Again, this is NOT meant to offend you, because we ALL have things that we are not knowledgeable about for tax returns. But as tax professionals, we should not be accepting clients that have situations that we don't even know the basics.
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Thank TaxGuyBill.
I was trying to figure out how to say something along your lines, but gave up. You were much clearer than I would have been.
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It took me a while to figure out how to say it too. 😂
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It's called double dipping and the IRS isn't an ice cream shop so it can't be done.
Slava Ukraini!
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"Any IRS reference that it is not allowed?"
Find the Breakdown for the mileage allowance components. You will see depreciation is already in there. You cannot take things separately as well as in the Mileage Allowance. That's why it's called Double Dipping.
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