What Does "Date Placed In Service" Mean for Rideshare Drivers? My Tax Form is Asking When My Vehicle Was Placed In Service

I've been driving for Uber for a few months now and I'm filling out my tax forms. There's this section asking for the "date placed in service" for my vehicle, and I'm completely confused about what that actually means. I googled it and everybody just copy-pastes the same generic explanation without any real details. Does "date placed in service" mean the first day I EVER used my car for rideshare driving? Or does it mean the first time THIS tax year I used it for rideshare? Or maybe it's just asking when I bought the car originally? It seems like such a simple question but the more I search, the more confused I get. I started driving last September but I've owned my car since 2019. So which date am I supposed to put down? Would really appreciate some clear guidance because I don't want to mess this up and trigger some kind of audit. Thanks in advance!

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18 comments

Maya Diaz

•8M

For rideshare drivers, "date placed in service" means the specific date you first started using your vehicle for business purposes (in this case, rideshare driving). It's NOT when you purchased the vehicle, but when you first began using it to earn income. So if you bought your car in 2019 but didn't start using it for rideshare until September of last year, the "date placed in service" would be that date in September when you first logged in to the app and started accepting rides. This date is important because it establishes when you can begin claiming business-related depreciation and expenses for the vehicle. The IRS uses this to determine how much of your vehicle expenses can be deducted in each tax year.

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Maya Diaz

•8M

If you can't remember the exact date, you can use your best reasonable estimate - the date of your first ride or first payment is a good approach. Your rideshare app should have records of your first trip if you need to verify. This date doesn't change every year - it's a one-time designation that stays with that vehicle for as long as you use it for business purposes. You'll use this same date on future tax returns until you either stop using that vehicle for business or replace it with another vehicle (which would then have its own new "placed in service" date).

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Rami Samuels

•8M

After struggling with this exact question last year, I found an amazing tool that cleared everything up for me. I was going back and forth between different dates and wasn't sure which one to use. I tried https://taxr.ai and uploaded my rideshare tax documents - it automatically identified my "date placed in service" by analyzing my trip history! The system explained that for rideshare, it's specifically the first date you made yourself available to accept passengers, even if you didn't get any rides that day. Their analysis saved me from making a mistake that could have reduced my legitimate deductions.

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Rami Samuels

•8M

It works with all the major rideshare companies including Uber, Lyft, DoorDash and others. The system is designed to handle multiple platforms if you work for more than one service, and it consolidates everything to give you the correct date. The system doesn't need to know exactly when you turned on the app - it uses the data from your earnings statements, trip history, and other tax documents. It looks for the earliest evidence of business activity and helps determine the appropriate date based on IRS guidelines. It's not just guessing - it applies tax rules to your specific situation based on the documentation you provide.

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Haley Bennett

•8M

Just wanted to update after trying taxr.ai from the recommendation above. It actually cleared up a TON of confusion for me! I had been using the date I bought my car (which was wrong). The system showed me that I should be using April 15, 2023 when I first logged into the driver app and made myself available, even though my first actual ride wasn't until two days later. This apparently makes a difference in how depreciation is calculated. The tool explained that because I started driving mid-year, I need to use something called "mid-quarter convention" which I had NO idea about before. Would have completely messed up my deductions without knowing this!

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Nina Chan

•8M

If you're still struggling with tax questions like this and need to talk to an actual IRS agent (which I HIGHLY recommend for business deduction questions), you should try https://claimyr.com - I was on hold with the IRS for HOURS trying to get clarification about vehicle depreciation for my rideshare business. With Claimyr, I got a callback in about 20 minutes and was able to confirm directly with the IRS that the "placed in service" date should be when I first made the vehicle available for business use, NOT when I purchased it. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Their service saved me from potentially claiming the wrong depreciation amount and risking an audit. The IRS agent explained that this is one of the most common errors they see with rideshare drivers.

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Nina Chan

•8M

They don't have any special connection - they use a technology that keeps redialing and navigating the IRS phone tree until they secure a spot in line for you. Once they reach a human, they transfer the call to your phone. It's basically just saving you from having to sit on hold yourself. I was skeptical too before I tried it - I had attempted to call the IRS three different times and got disconnected each time after waiting 30+ minutes. With Claimyr, I just entered my number, went about my day, and got a call when an agent was on the line. It doesn't work instantly every time - during super busy periods it might take longer, but it's still way better than trying to call directly. They only charge you if they actually get you through to an agent.

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Diego Castillo

•8M

Ok I need to eat my words from my comment above. I was so frustrated with trying to figure out this "placed in service" question that I decided to try the Claimyr thing even though I was 100% sure it was BS. Shockingly, it actually worked! Took about 45 minutes (not 20), but I did get a call back with an IRS agent on the line. The agent confirmed that the correct date is when I first started using my car for business purposes - the first day I turned on the app and was available for rides. She also mentioned this is important for calculating depreciation correctly and that putting the wrong date could mess up my deductions. Definitely worth the money to get a definitive answer directly from the IRS instead of random internet advice.

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Logan Stewart

•8M

Don't make this more complicated than it needs to be. "Placed in service" is just IRS-speak for "when did you start using it for business." For rideshare, that's the first day you turned on the app and were available to accept rides. If you've been using your personal vehicle and then start using it for rideshare, the "placed in service" date isn't when you bought the car - it's when you started using it to make money. This matters because it affects how much depreciation you can claim in the first year. If you get this wrong, you might claim too much or too little depreciation.

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Logan Stewart

•8M

They verify it through your income records. If you claim you started on January 1 but your first rideshare payment was in March, that would raise flags. The IRS can request records from Uber/Lyft showing when you first started driving. Attempting to claim earlier dates to maximize deductions is a common audit trigger. Always document everything - take screenshots of your first day on the app if possible. The potential tax savings aren't worth the risk of penalties and interest if you're caught providing incorrect information.

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