Re:I Paid $250 to Drive for Lyft Last Year
by Danieru on Friday December 11, 2020 @11:07PM
(#25395427)
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.
Re:I Paid $250 to Drive for Lyft Last Year
by chrismcb on Saturday December 12, 2020 @12:10AM
(#25395771)
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.
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.