These expenses are only deductible by 50% if incurred while travelling out of town. Let’s say you used your cell phone 25% of the time while driving for Uber to run the app, calling passengers, using the navigation apps, then you can claim 25% of your phone plan. If you use the same phone for rideshare work as well as personal, you can only claim a partial deduction. You can claim part of it! Unless of course you have a separate phone that you use for work 100% of the time. It is better to keep track of it once you start a “shift” because the tax summary is only going to give you the kilometres you drove while on trips and not driving around waiting for pings, getting to a surge zone or on your way to pick up a passenger. Ideally you want to keep track of the kilometres as you are driving for Uber but if you didn’t you can find that number in the annual tax summary Uber provides you. Things like the purchase price (capital cost) of your car are calculated a little differently. That means that you can claim 25% (for most) expenses like gas, oil changes, etc. Now let’s say you report a total of 5,000 kilometres while doing your Uber taxes. Let’s say you drove 20,000 kilometres the whole year. The easiest way to do this is to take a reading of your vehicle’s odometer January 1st and again at the end of the year. Most rideshare drivers are using their personal car, so it is important you separate the kilometres you drove for Uber and for personal use. Nope, sorry! Breaking the law does not count as an eligible business expense. Can I deduct parking and speeding tickets as a expense? Lyft: What is the difference in Driver Pay and Taxes. For more information on the two companies in Toronto have a look at Uber vs. It works a little different between Uber & Lyft. This is why it may seem like your income is higher on annual tax summary because the total fare is included as your earnings and then the fees each rideshare company keep are expenses. This is important because HST is actually charged on the total fare including these fees. The terminology is bit different between each company, like Uber & Booking Fee, Lyft & Service Fee, but they are basically the same. You will get a summary at the end of the year from the rideshare company that will break all this down for you. These fees can be classified as an administrative/management or agent fee. It just doesn’t seem that way because you never actually get that money in the first place. The customer is paying you and then you have to pay the rideshare company for their services. Yes they are! The cut that Uber and Lyft takes is basically a business expense. Tax software costs and accountant or bookkeeping fees Are the service/booking fees and commissions considered an expense?.Transponder for toll roads like the 407.Some parking fees, such as when you are attending the Greenlight Hub.Safety Standards Certificate for your vehicle inspection.Fluids like windshield wiper fluid, antifreeze, etc.Phone accessories like chargers, auxiliary cords and handsfree headsets. Vehicle licensing and registration fees.Snacks or freebies you give to your riders, like water or candy.Parts for your vehicle, like new tires or windshield wipers.Some things you can deduct or claim as business expenses are: What kind of expenses can I deduct or claim? This does not include the HST you collected on paid. For example, if you made $40,000 in 2017 as an Uber and/or Lyft driver, and you had $10,000 of (eligible) expenses, then it is kind of like you only made $30,000 that year and will be taxed accordingly.
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