# Vehicle for hire or taxi?



## HERR_UBERMENSCH (Jun 3, 2016)

So is an Uber vehicle a car for hire or taxi? If so then according to this it won't qualify as a business vehicle and thus you cannot deduct mileage or expenses on your taxes. This would be very bad news and make all ridesharing not worth the trouble at all, drivers will be losing money.

https://turbotax.intuit.com/tax-too...-Taxes/Business-Use-of-Vehicles/INF12071.html


----------



## UberMeansSuper (Aug 3, 2015)

Well, we're not a taxi.

LOL Uber was pushing TurboTax so that we could take advantage of deductions!!


----------



## HERR_UBERMENSCH (Jun 3, 2016)

HERR_UBERMENSCH said:


> So is an Uber vehicle a car for hire or taxi? If so then according to this it won't qualify as a business vehicle and thus you cannot deduct mileage or expenses on your taxes. This would be very bad news and make all ridesharing not worth the trouble at all, drivers will be losing money.
> 
> https://turbotax.intuit.com/tax-too...-Taxes/Business-Use-of-Vehicles/INF12071.html


Here is the page from the IRS, apparently a car for hire can take the standard mileage deduction now, you just can't depreciate a vehicle used in that manner. Too bad for all of the geniuses who went and bought new cars to use for Uber.

https://www.irs.gov/publications/p463/ch04.html#en_US_2015_publink100033930


----------



## UberTaxPro (Oct 3, 2014)

HERR_UBERMENSCH said:


> So is an Uber vehicle a car for hire or taxi? If so then according to this it won't qualify as a business vehicle and thus you cannot deduct mileage or expenses on your taxes. This would be very bad news and make all ridesharing not worth the trouble at all, drivers will be losing money.
> 
> https://turbotax.intuit.com/tax-too...-Taxes/Business-Use-of-Vehicles/INF12071.html


That article is wrong about the car for hire and taxi not being able to use SMD. Don't believe everything you read! It was true a while back but the law has been changed. It looks like that article was written a while ago then updated but not correctly.


----------



## UberTaxPro (Oct 3, 2014)

HERR_UBERMENSCH said:


> Here is the page from the IRS, apparently a car for hire can take the standard mileage deduction now, you just can't depreciate a vehicle used in that manner. Too bad for all of the geniuses who went and bought new cars to use for Uber.
> 
> https://www.irs.gov/publications/p463/ch04.html#en_US_2015_publink100033930


The depreciation is built into the standard mileage deduction. I believe its 24 cents for 2016. When you sell or dispose of a vehicle that you've taken the standard mileage deduction on the depreciation part (.24 cents per mile) is subject to depreciation recapture.


----------

