Does driving your vehicle for uber count as vehicle for hire

[mulox]

I see this same question asked elsewhere on here and it's answered "Yes" by a TurboTax Pro... which is it?

[TaxGuyBill · Accepted solution]

Yes, it is for hire.  You are receiving money for driving.  That is practically the dictionary definition of "vehicle for hire".

https://ttlc.intuit.com/questions/3603887-i-get-conflicting-answers-about-using-my-vehicle-for-hire-...

[jonwilcox22]

When considering taxes you may use your vehicle for deductions for things such as gas, mileage, washes, maintenance and other expenses which may occur during your job.
A comparison would be a carpenter using his truck for work.
*However your vehicle itself is NOT considered vehicle-for-hire. In all 50 states the requirement for vehicle-for-hire require commercial insurance and often require special plates and decals supplied by the state. Vehicles must be inspected by the state and require regular inspections. Furethermore alcohol limits are much lower when operating a commercial vehicle. In the USA the BAC is .4 half of a personal operated vehicle.
Uber/Lyft fall under a different category called "ride-share" which drivers are summoned by an app requested by the account holder.  
Vehicles that fall under state mandate as commercial use also limit the amount of use or hours of operating equipment, heavy equipment and transporting larger groups of passengers. Uber has none of these requirements nor follow any of the state regulations that encompasses vehicle-for-hire.
Lastly Uber and Lyft  being classified as "ride-share" app-hailing firm avoid their drivers being scrutinized for drug testing, eye exams, health exams, tuberculosis, hernias, and FBI fingerprinting background checks which has allowed these firms to grow to quickly.
These methods though have become the topic of much debate and have caught the attentions of regulators and law makers due to high profile cases and thus changing laws to close these loopholes.

[TaxGuyBill]

Although the DOT and insurance companies may vary if Uber is "for hire" or not, it is clear the Tax Code *DOES* classify it as "for hire".

TurboTax asks that question because the Tax Code has a rule in regards to a vehicle used for a "business of providing to unrelated persons services consisting of the transportation of persons or property for compensation or hire".
<a rel="nofollow" target="_blank" href="https://www.law.cornell.edu/uscode/text/26/280F#d_4">https://www.law.cornell.edu/uscode/text/26/280F...>

[jonwilcox22]

The question is "does your car fall under vehicle-for-hire." It doesn't. However as a independent contractor you may use for vehicle expenses for tax deduction. So whereas you need the tax deductions for taxes you may implement the deductions.
The new tax deductions that may go into effect essentially will kill this deduction by the new Trump administration. Fleet owners will benifit by not independent contractors which many drivers have stated will leave the platform if this occurs.

The car itself is not classified as a vehicle-for-hire by state and statue standards.
I'd also point out many drivers are involved in acccidnets and Uber is well known to distance themselves from responsibility by making statements they are not responsible for liability and simply provide a service to connect two people.
Commercial vehicle-for-hire cars do not allow outside persons to operate the vehicle. Only drivers with passed checks are on commercial policy of the vehicle. No outside family members or friends.
You can find an overwhelming amount of requirements to be classified as commercial vehicle-for-hire which are non existent when utilizing your car for these firms.
So for taxes as a independent contractor you may make vehicle deductions but the vehicle  is clearly not a commercial ride.

If you had a few drinks and blew a .5 would you tell the officer "I'm over the limit and guilty, this is a commercial vehicle".(?)  I highly doubt it and it's not. Right there would give you a clear indication of the differences.

On both firms websites they claim they do not provide any transportation and drivers are independent contractors.

Uber's app clearly states they are not responsible for any actions of the driver and you as the passenger assume all risk and they are not liable even if death occurred.

*Take the app away and the vehicle itself doesn't carry commercial endorsements. Uber's insurance provided by James Rivers protects the passengers in case of an accident. If the driver is involved in an accident they do not have any coverage from injuries. Uber has a $1,000 deductible for crashes the driver is responsible for and Lyft has a $2,500 deductible. It's at this point when a crash does occur does the reality set in working for the app firms.
This is why many drivers remove the required by law placard in their windsheild to avoid claims through Uber and paying the high deductible or having their insurance find out they are working as a driver.  Uber also makes it clear drivers are responsible for notifying their policy of such endeavors and must obtain extra ride-share coverage to fill the gap. In most cases insurance will drop the policy holder once they are involved in an accident. Some airports are now requiring proof from their insurance they have obtained the extra coverage to fill the gap.
With a commercial vehicle the policy is clear, the vehicle has 24/7 commercial coverage.

[TaxGuyBill]

The purpose of the question is to determine the vehicle rules.  For Uber drivers, the correct answer is YES, the vehicle is for hire (for TAX purposes).

[PatriciaV]

No, driving for Uber is ride-sharing. Taxis, limos, and rental cars are considered vehicles for hire.

See also: Tax Tips for Uber, Lyft, Sidecare, and other Car Sharing Drivers

[moiruak]

yes