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DoorDash makes tipping an afterthought to protest New York City’s wage raise
(www.theverge.com)
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this post was submitted on 05 Dec 2023
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The $0.655 per mile is the IRS rate for travel, and is intended to cover gas, maintenance, depreciation, etc.
You are not counting the replacement cost of the vehicle in your calculations. Once you deplete your current vehicle of all of its value, you have to acquire another vehicle, functionally equivalent to the vehicle you started with. If you don't do that, your "income" is partially from depleting the value of your asset.
Most drivers make that specific error, because it is not a straightforward calculation, and varies considerably on the driver's specific circumstances. I use the IRS numbers in an attempt to normalize widely disparate expenses.
Even if it does indeed cost you far less than $0.655 per mile, your AGI will be based on the assumption that you do pay that number.
lol yeah sure. I don't know what kind of car you're exclusively using for delivery driving, but by your logic mine was covered very quickly. So no, it definitely didn't cost me $0.65 a mile to drive with that in mind.
That's fine.
The only thing it really tells me is that you are better off using the standard mileage deduction than itemizing your actual vehicle expenses.
I guess you missed the part where your $0.65/mile driving cost argument totally breaks down.
I already addressed that you are not adequately accounting for replacement costs. I further doubt you are adequately accounting for repair costs as well. You're probably "saving" money doing your own repairs, and not counting the value of your labor as your own mechanic. You're probably not accounting for insurance costs either. I'd bet the cash in my pockets that you're underestimating miles driven on your insurance, significantly lowering your rates.
If you are not budgeting $0.655 per mile for vehicle expenses, you are one major repair away from hardship.
It is far more likely that you are not correctly accounting for your expenses than you are significantly below that number over the long run. Using a common, $0.655 per mile estimate negates the effects of all the "tricks" used to artificially lower costs.
I trust the IRS's numbers far more than I trust some random Lemming.
Can you read? I mean obviously you can but your selective comprehension is baffling. I already told you my car has been "replaced." Actually it's been replaced multiple times over and it's still going. Your petty assumptions about my situation are frankly wrong, and when I compared deducting the mileage rate vs itemized deductions, the mileage rate was so much better I wondered why anyone would consider itemizing. Drive cheap, efficient cars my friend, you can really game that mileage rate.
Also do you really think the IRS has local couriers driving tiny used cars in mind when they're creating their mileage deduction? No, they don't.
Well, just hop on a bicycle, and you can lower your per mile expenses to almost nothing!
I stand by my use of the IRS numbers fot demonstrating this point. The methodology used to calculate those numbers is reasonable and sound. Your own methodology is... not.