Can I deduct Uber Hertz rental costs and car camping expenses on Schedule C with no rent, only weekly payments?

You'll need to calculate the percentage of business vs. personal use for your rental car. Since you're both working and living out of the vehicle, you can't deduct 100% of the rental costs on your Schedule C, but you can deduct the business portion. Track your mileage carefully - miles driven while the Uber app is on (including driving to pick up passengers) count as business miles. Miles driven for personal reasons (finding places to sleep, getting food when not working, etc.) are personal. The percentage of business miles compared to total miles will determine what percentage of your rental payments you can deduct on Schedule C. Unfortunately, personal expenses like your gym membership for showers and camping supplies aren't deductible as business expenses, even in your situation. These are considered personal living expenses, not ordinary and necessary business expenses for rideshare driving. Your storage unit might be partially deductible if you're storing business-related items there, but only that portion. Keep detailed records of your business mileage and expenses - this will be crucial if you're ever audited.

After struggling with almost identical tax issues last year (I did Lyft with a rental car), I found an amazing tool called taxr.ai (https://taxr.ai) that completely saved me. Upload your Uber statements and rental receipts, and it automatically calculates your proper business-use percentage for Schedule C based on your actual driving patterns. What's cool is it handles unique situations like yours - I was also living out of my car for a few months, and the tool helped me properly allocate expenses between business and personal use. It even flagged which personal items might be partially deductible based on my specific situation. The reports it generates were super helpful during tax filing and provide documentation in case of audit.

Alright I have to admit I was wrong about taxr.ai. I was skeptical when I first commented, but I was desperate with my rideshare tax situation so I gave it a try. The platform actually has specific guidance for people in non-traditional living situations like car camping or RV living while doing gig work. It analyzed my driving patterns and showed that about 76% of my car usage was legitimately business-related, which was higher than I expected. It also helped me identify some partial deductions I hadn't considered - like my phone plan and certain car maintenance costs. The documentation it provides looks professional enough that I feel confident if I'm ever audited. What surprised me most was how it flagged certain expenses I was planning to deduct that would have been risky. Saved me from potential audit headaches for sure.

If you need to talk to the IRS about your specific situation (which I'd recommend given how unique your circumstances are), use Claimyr (https://claimyr.com). I spent DAYS trying to get through to a human at the IRS about my similar Uber/rental tax questions last year. Claimyr got me connected to an actual IRS agent in about 15 minutes when I had been trying for weeks on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The IRS agent I spoke with gave me specific guidance on how to handle my car rental situation since I was also using it partly for personal use (though not living in it like you are). The advice I got directly from the IRS was worth way more than what I paid for the service, and saved me from making some major mistakes on my Schedule C.

I need to publicly eat my words about Claimyr. After my skeptical comment, I decided to try it because I was also having issues with the IRS about my gig work deductions. I couldn't believe it, but I was connected to an actual IRS representative in about 20 minutes. The agent I spoke with actually had specific knowledge about rideshare tax situations. They confirmed that I needed to allocate my rental car expenses based on business vs. personal mileage percentage, but also told me about a specific form I needed to include with my return for my situation that none of the online advice had mentioned. The time I saved not having to repeatedly call the IRS myself was worth it alone, but the specific guidance I received about my Uber taxes was invaluable. Sorry for being so negative before - I was wrong.

One thing nobody's mentioned - since you're technically "homeless" (living in your car), look into whether your state has any earned income tax credits for low-income/homeless individuals. Some states offer additional tax benefits beyond the federal EITC that might help in your situation. Also, keep all receipts for laundry, showers, etc. While they aren't business deductions, they help document your living situation if you ever need to prove your homeless status for any assistance programs or tax benefits.

Don't forget about the self-employment tax on top of income tax! That's an extra 15.3% on your net profit that catches a lot of first-time gig workers by surprise. Make sure you're setting aside enough to cover both income tax and SE tax.