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I Paid $250 to Drive for Lyft Last Year

jalopnik.com

29 points by plerpin 5 years ago · 7 comments

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chrismcb 5 years ago

The author got paid almost 30k, doesn't 6k... Yet paid 250? That isn't how the IRS reimbursement works.

The author is right, if he didn't do the work himself, he probably would have paid 250, as the labor costs on the vehicle works probably come close to 25k. And there is one of the problems with Uber, and one reason why conventional taxis are not expensive.

Danieru 5 years ago

Uh, author is committing tax fraud. The standardized tax deduction for mileage includes maintance and fuel etc. So to both itemize your costs plus taking the standard deduction is to double count the same costs.

Author is also benefiting from negative deduction on the value of his car. His car was long ago worthless, yet thanks to the standard deduction he is discounting it for tax purposes below zero. This is not normal accounting and not what the irs intended by offering the standard deduction.

If anything this means author is able to earn cash tax free. Except for the whole fraud aspect. If you are willing to commit fraud any business can run in the red for tax purposes.

  • chrismcb 5 years ago

    How do you figure he is taking both the standard deduction and itemizing the cost? He is saying he found 50k, at 59 cents a mile that is 29k. More than he made.

howeyc 5 years ago

> For 2019, my gross income, pre-expense income for both apps was around $29,272. Using the IRS’s $0.58 per mile reimbursement fee, and writing off a portion of my cell phone bill, totals out to about $29,500. So, last year I technically paid about $250 to work.

That's not how that works. So much misunderstanding in that statement.

ClumsyPilot 5 years ago

I am not 100% clear on the math here, but it does seem like the Uber and Lyft innovate more in accounting, tax-dodging and sidestepping regulation than they do in any real technology. Their value to society is seems marginal to possibly negative.

  • matt-attack 5 years ago

    They count on drivers being enticed by the apparently income without realizing the true net gain. Hidden expenses include: vehicle depreciation, repairs, gas, etc.

    If those expenses aren’t taken into account, the jobs seem pretty decent. If you take those into account drivers would realize they’re making far less than they think.

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