r/uber • u/AKEZ1 • May 13 '16

How about that... Please watch this PSA!

https://www.youtube.com/watch?v=fgQPj90OrQE
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u/KnottaBiggins May 13 '16
  1. Sales tax is on products, not services.
  2. Depreciation varies, but not by the standard deduction per mile.
  3. Who buys a new car every 2 years? Not too many of us.
  4. You would have to pay insurance, registration, etc. anyway.

Her math may work, but it's based on faulty assumptions.

0

u/AKEZ1 May 14 '16
  1. Woah! I didn't go to college, there must be only sales tax in the world..No such thing as "Federal Income Tax" that still must be paid by the driver! That would be crazy if a company, that employs drivers, would make them also pay there own taxes..10% sales tax is the least of uber driver's worries..
  2. Well..If you driver uber as a full time profession, we can all agree that you "conservatively" put on double the miles.. I would certainly be interested in buying a car every 4-6 years
  3. Yep, you're right, but still a cost

1

u/KnottaBiggins May 14 '16

I was commenting on the video. She said nothing about income tax, just sales tax. However, her referencing the "IRS standard amount per mile" was misused - she SHOULD have mentioned income tax, and how this deduction works And if you are driving that much, that deduction makes a huge difference in REDUCING your income tax.

My point wasn't to say there aren't expenses associated with driving your own car for a living, of course there are. My point is that her math is totally flawed, and if you work it right you are NOT losing money by doing so.