I’m not saying people are rolling in money who do it, but it’s a viable income stream. Again, no matter how foolish you think people may be, Uber drivers would not be doing it if it weren’t profitable.I’ve worked with enough people to tell you many have no clue.
The year the casino at Evansville opened I had a new client come in from Terre Haute. She had retired from Crane. The first time she went she won over $50,000 in slots. Of course she was hooked and continued going back. She had a stack of W-2Gs totaling over $150,000 that first year. It’s been too long to remember so my numbers aren’t exact. Anyway she thought she owed a bunch of taxes. She didn’t have her Win/Loss statement so we called the casino and obtained it. The Win/Loss statement showed net losses $90,000. She said great I only owe taxes on $60,000. I said no you lost $240,000. On the federal you can only deduct up to your winnings as itemized deduction and you owe state taxes on all $150,000. She continued over the years winning and net losses ate up all her retirement income each year. Eventually she lost her house and moved in with her elderly mom. She did finally stop going to casino.
This is extreme story but many folks have no idea what they’re making. I am guessing uber and others aren’t generating big profits when taking into account depreciation on their auto and all costs of operating (gas, repairs, insurance and license).
Since I’ve never worked with anyone doing it, I could be wrong and they’re making big bucks.
The Uber deduction for tax purposes is super straight forward. $0.65/ mile which encompasses driving costs, gas, repairs/ maintenance, and depreciation. Tolls and parking are separate.