Ask an Accountant

Question
Can I claim the payments on my car that I use for deliveries (Doordash and UberEats) even if I purchased it with a loan 18 months before I started with the delivery services?
Answer

Great question! The short answer — yes. Generally you have two options:

1) Track your business mileage and claim the “standard mileage deduction” on your taxes, which is $0.56/mile in 2021

2) Add your vehicle as a “listed asset” on your tax return and claim the actual business costs of the vehicle.

It doesn’t matter that it was purchased 18 months prior, all that matters is when it was “placed in service,” which would be the date you started driving for work. For a more in-depth instructions, check out our Guide to Car Tax Deductions on Keeper Tax’s Free Resources page!

No answer given yet!

Sarah York, EA

Sarah is an Enrolled Agent with the IRS and has 6 years of tax and accounting experience. She's an avid hiker, animal lover, and self-proclaimed chocolate connoisseur.

Followup question?
Ask away.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Got a different question? Ask our accountants.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Find write-offs.
File taxes.

Keeper Tax helps independent contractors and freelancers discover tax deductions and file taxes.

try free →