What is a Ride-Sharing Operating Business?

Uber and Lyft!

Uber and Lyft drivers are considered self-employed. Therefore, they are required to report their self-employment income on form T2125 - Statement of Business or Professional Activities.

Are food delivery services self-employed?

Uber eats, SkipTheDishes and many others are considered self-employed businesses that must be reported for taxes.

How to prepare Income Taxes as a Ride-Sharing Driver

To prepare, you should gather documents related to your income, mileage and other tax-related expenses, such as:

The Annual Tax Summary from Uber, Lyft, or your Ride-share partner

Receipts, bills, and statements for all tax-deductible expenses

The total vehicle mileage that was driven for the year (E.g., Odometer reading from the beginning of the year and at the end of the year)

Number of Kilometres driven for business and personal

The GST/HST number (business number)

What kind of expenses can be claimed as a Ride-Sharing Driver

The annual statement will include costs such as:

Booking fees

Service fees

Ride sharing fees

You can also report other related expenses such as:

Meals (food or water services provided for clients)

Parking fees during pick-up and delivery

Telephone (air-time for business use only)

License fees to work as a driver

Regarding vehicle expenses:

If you own the vehicle, you cannot deduct the total cost of the car as expenses. Instead, you will need to determine the Capital Cost Allowance (CCA) you may claim. Instead of claiming the price as an expense, you depreciate the value over the years. Choose the depreciation class type depending on the type of vehicle - a passenger vehicle, a motor vehicle, or a zero-emission vehicle.

Ride-Sharing is a great way to create income. Know what tax rules apply when declaring this business to make the most of your new occupation!