Uber 485300 Was your vehicle used for hire?

Forum|Forum|1 year ago
February 19, 2025
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If I am filing code 485300 for Taxis, Limos & Ride Share that are all grouped as one code. Do I answer the question: "Was your Vehicle used for hire?", yes or no? It specifies that for hire includes things like hauling, taxi service, limo service, etc. If same code is used for taxis and limos, is this answer yes or no?

I have seen many confusing answers in this forum, some say no, some say yes. Please an expert advise so this question can finally be solved.

Ask the Experts - Deciphering - Feb 2025

Best answer by DawnC

You should answer Yes if you drive a taxi, limo, or drive for Uber. You can’t use the standard mileage rate if you:

Use five or more cars at the same time (such as in fleet operations);
Claimed a depreciation deduction for the car using any method other than straight line for the car’s estimated useful life;
Used the Modified Accelerated Cost Recovery System (MACRS) (as discussed later under Depreciation Deduction);
Claimed a section 179 deduction (discussed later) on the car;
Claimed the special depreciation allowance on the car; or
Claimed actual car expenses after 1997 for a car you leased.

From Pub 463

DawnCAnswer

Employee

You should answer Yes if you drive a taxi, limo, or drive for Uber. You can’t use the standard mileage rate if you:

Use five or more cars at the same time (such as in fleet operations);
Claimed a depreciation deduction for the car using any method other than straight line for the car’s estimated useful life;
Used the Modified Accelerated Cost Recovery System (MACRS) (as discussed later under Depreciation Deduction);
Claimed a section 179 deduction (discussed later) on the car;
Claimed the special depreciation allowance on the car; or
Claimed actual car expenses after 1997 for a car you leased.

From Pub 463

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