A good rule of thumb is: You should record your mileage with Stride Tax when you're actively working.
The mileage that you incur on your way to your first passenger, between passengers, and back home is all deductible.
Here's some more information on each of those mileage types:
From home (or wherever you start driving from) to first passenger: Whenever you're online with your rideshare app and you have the intention of accepting rides, your mileage is deductible. If you're matched with a passenger, your mileage from your current location to the passenger is deductible since you're actively working!
Between passengers: As long as you're both online with your rideshare apps and you intend to accept rides, you are still considered to be working--which makes your mileage deductible!
From your last passenger to home: There are a few different ways you would be able to deduct this mileage. If any of the following circumstances are true, then this mileage is deductible:
- You stay online with your ridesharing app (and intend to accept rides!) until you reach home. Note that if you stay online but deny all trips, then your mileage would not be deductible since you don't intend to make money.
- Your home is your primary place of business. If you tend to do administrative tasks for your rideshare business from your home (such as organizing your finances, planning your driving shifts for the week, etc.), then you could classify your home as your "primary place of business." This means that driving from your last trip to home would have a business purpose.
- You're returning home from a temporary work location. If you tend to work in one area, but drive elsewhere in search of higher fares for a special occasion, then you are technically returning from a "temporary work location," which would make your mileage deductible.
What this means is that many people only need to open the app twice throughout the day: when they start driving at the beginning of their day, and when they finish driving at the end. You can run the app in the background while you use your rideshare app.
Questions? Suggestions? Please don’t hesitate to reach out via email at email@example.com. We'd be happy to talk through any of these features!