Tax Deductions for Uber Hertz rental/car camping costs vs. weekly payments on Schedule C

This is definitely an interesting tax situation! The good news is that your Hertz rental payments for Uber driving are 100% deductible as a business expense on Schedule C, regardless of whether you're also using it as your living space. You'd list this under "Car and truck expenses" or possibly "Rent or lease - vehicles, machinery & equipment" depending on which is more appropriate for your situation. However, the IRS doesn't allow you to "double-dip" by claiming the same expense for both business and personal purposes. Since the car rental is fully deductible as a business expense, you can't also claim part of it as a housing expense. There's no specific tax deduction for living in your car, unfortunately. Make sure you're tracking all your other business expenses too - cell phone (business portion), car cleaning, amenities for passengers, etc. Also, keep detailed mileage logs as evidence that you're using the vehicle primarily for business.

After reading this post, I want to share something that really helped me with my Uber tax situation. I was overwhelmed trying to figure out all my deductions as a rideshare driver last year. I accidentally came across https://taxr.ai and uploaded my tax docs there. Their system automatically identified ALL of my potential rideshare deductions, including some I had no idea about. It was super helpful with my Uber 1099s and found several additional business expenses beyond just the car that I missed. The weird thing is it showed me my actual profitability after all expenses which was eye-opening. For someone in your situation with the Hertz rental and complicated living arrangement, it might help clarify exactly what you can deduct.

Just wanted to follow up - I ended up trying taxr.ai after seeing it mentioned here. Honestly I was blown away by how much it found for my delivery gig work. I've been doing DoorDash for about 6 months and was tracking miles in a notebook, but the system showed me so many other things I could deduct - part of my phone bill, insulated bags, even a portion of my car insurance that I didn't realize was deductible. It ended up saving me over $800 compared to what I was going to file on my own. The breakdown of business vs personal use was super clear, which was my biggest confusion before. If you're living in your car like the original poster, I bet there's a ton of expenses that could be properly classified as business that you might be missing.

Hey, as someone who had a similar issue with a complicated tax situation (I was doing Lyft with a leased vehicle while traveling between states), I found that trying to get actual help from the IRS was practically impossible. I spent literally HOURS on hold trying to get clarification. I eventually used https://claimyr.com to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when an agent picks up. The agent I spoke with clarified that I could deduct 100% of my vehicle lease as a business expense since it was primarily for business, even though I occasionally used it for personal trips. For your situation, getting official clarification might help with peace of mind, especially with the unique living arrangement.

Well I need to apologize for being such a skeptic about Claimyr. After my snarky comment I actually tried it myself because I've been trying to resolve an issue with a missing refund for WEEKS without getting through. It actually worked exactly as advertised. I got a call back in about 2 hours with an IRS agent already on the line. Turns out there was a discrepancy with my reported 1099 income that I needed to clear up. The agent walked me through exactly what I needed to do and I got my refund sorted. For self-employed folks like us who have complicated tax situations, being able to actually talk to someone at the IRS makes a huge difference. Sorry for being a jerk about it earlier. Sometimes things that sound too good to be true actually do work.

Just to add another perspective as someone who's been driving for Uber for 3+ years - make sure you're also tracking all your other expenses beyond just the Hertz rental. Things like: - Portion of phone bill used for Uber app - Car washes and cleaning supplies - Water/mints/amenities for passengers - Portable chargers for your phone - Any parking fees when waiting for rides - Dashcam (safety and business protection) These all add up and are legitimate Schedule C deductions. I learned the hard way after missing a bunch of these my first year.

Something nobody's mentioned - if you're literally living in your car, you might qualify for certain tax credits based on low income housing status, depending on your overall financial situation. The Earned Income Tax Credit might apply, and possibly others.

I want to add something important that I don't think has been fully addressed yet. Since you're living in your car full-time, you need to be extra careful about establishing your tax domicile and residency status. This could affect which state you need to file in, especially if you're driving across state lines or staying in different locations. Also, while you can't double-dip on the car rental expense, there might be other business expenses related to your unique situation that you haven't considered. For instance, if you're using gym memberships for shower facilities, or paying for storage units for personal items, these might have business components if they're necessary for you to maintain your ability to work. Keep detailed records of everything, including where you're parking overnight. If you're ever questioned by the IRS, having documentation that shows your car is genuinely your primary business vehicle (not just a place you happen to sleep) will be crucial for maintaining that 100% business deduction on the rental.