If you’re driving for Uber, Lyft, DoorDash, Instacart, Amazon Flex, or any other gig platform in Los Angeles, understanding your taxes is just as important as understanding your GPS. 💸
At LA Elite Rentals, we provide cheap rental cars for rideshare and delivery drivers, and we also want to help you keep more of your hard-earned income. That’s why we’ve created this simple tax guide with what gig drivers can and can’t deduct in 2025.
✅ What You Can Deduct as a Rideshare or Delivery Driver
The IRS allows independent contractors to deduct “ordinary and necessary” business expenses. Here’s what qualifies:
🚗 1. Car Expenses
If you’re renting a car through LA Elite Rentals for gig work, many of the related expenses may be deductible:
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Rental fees (weekly or monthly payments)
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Insurance included with the rental
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Maintenance fees (if paid separately)
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Interest or fees on rental agreements (if applicable)
💡 Tip: Keep every receipt and track your rental dates to back up your claim.
🛣️ 2. Mileage (If using your own car)
Instead of claiming car expenses, you can choose the standard mileage rate:
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2025 mileage rate (estimated): ~$0.67 per mile
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Use a mileage tracking app like Stride or Everlance
Note: If you’re renting a car and expenses are covered by your rental agreement, claiming mileage might not apply.
⛽ 3. Gas and Tolls
If not using the mileage method, you can deduct:
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Gasoline (keep receipts)
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Bridge and freeway tolls
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Parking fees (during work-related shifts)
📱 4. Phone and Data Plan
You need your phone to accept trips, find customers, and navigate. You can deduct:
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A percentage of your monthly cell bill
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The cost of a phone used mainly for work
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Apps or subscriptions like Gridwise, Mystro, or Everlance
🍔 5. Supplies and Work Essentials
These might include:
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Insulated food delivery bags
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Phone mounts or chargers
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Cleaning supplies for your vehicle
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Floor mats or seat covers (especially if you purchased them)
🚫 What You Can’t Deduct
Even though you’re working, not everything you spend money on counts as a business expense. Here’s what you can’t write off:
❌ Personal Use of Car
You can only deduct mileage or expenses from the time the car is used for work. Commuting to the store, taking your kids to school, or personal errands are not deductible.
❌ Meals (Unless You’re Traveling)
You can’t deduct meals you eat during your regular shifts. However, if you drive out of town for a gig-related event or training, some travel meals may qualify.
❌ Clothes or Shoes
Even if you bought comfortable shoes or a polo shirt for work, they’re generally not deductible unless it’s required and branded (e.g., a uniform for Amazon Flex).
❌ Fines and Tickets
Speeding tickets, parking violations, and other legal penalties are not deductible, even if you were working at the time.
🧾 Keep Track and Stay Organized
The IRS loves documentation. Here’s what every gig driver should have ready before tax season:
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Digital or printed receipts for car rentals and supplies
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A mileage log or trip history (Uber, DoorDash, etc.)
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A record of income from each platform
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A breakdown of work-related vs. personal expenses
🚗 Maximize Your Deductions with LA Elite Rentals
When you rent with LA Elite Rentals, we make it easy to stay tax-ready:
All-in pricing: Insurance, unlimited miles, and maintenance included
No credit check
Same-day pickup
Perfect for Uber, DoorDash, Instacart, Amazon Flex & more
Downloadable rental history upon request for tax purposes
💰 Final Tip: Work Smarter, Not Harder
Knowing what you can and can’t deduct helps you save money, reduce stress, and stay on the IRS’s good side. Combine that with a rideshare-ready rental car from LA Elite Rentals, and you’re set up for success.
📞 Call or Text to Book Today
🌐 Reserve Now at LAEliteRentals.com
