I’ve long been a happy Getaround member, first renting cars and now, sharing my Tesla Model S. In fact, I’ve earned quite a lot sharing my car and given tax season is here, I thought I’d share some of my learnings around taxes. Disclaimer: I am not a tax expert and you should consult an accountant for tax advice specific to your situation.
Here’s my situation: I made $11,120 in 2013 and according to my accountant I’m able to deduct $10,613.
Here’s how it works:
- Getaround will issue you a 1099: The 1099 form you receive from Getaround will have details of the total income your received over the year. That has to be reported as taxable income on your state and federal filings. In my case the total income was $11,120.
- Add up your deductions: To reduce your taxable income, you may be able to deduct certain expenses involved with owning and maintaining your vehicle, such as Car Payments, Garage, Insurance, Warranties and other related expenses. You may only deduct these costs in proportion to the time the vehicle is used for Getaround – this includes the time when the vehicle was made available for rental on your Getaround calendar even if no one used it. In my case, I reported that the vehicle was either rented, or available for rent, for 166 days of 2013. That amounts to 45% of the year.
- Calculate your reduced income: To calculate my deductible expenses, I add up all the expenses then multiply it by 45%. I then subtract that from my income to report the final income. If I end up losing money on the vehicle, then that reduces your income. In my case, I am fortunate enough to own a Tesla Model S. Here are the calculations that I’ve used:
As you can see. I ended up making a small loss on the vehicle for tax purposes. I expect that in future years, I will make a modest income as it becomes rented more often. Speaking of which, be sure to check out Getaround for my Model S.
I hope you find this information useful! Again, be sure to speak to a certified accountant first before you make any financial or tax decisions. I just wanted to share my experience.