Sharing expenses is compensation and the reg alludes to that fact in part (a) and by virtue of the list of the exceptions to said reg. If you really need a concrete example that includes the &quot;compensation or hire&quot; verbiage look at exception (b) of the reg.<p>(a) Except as provided in paragraphs (b) through (h) of this section, no person who holds a private pilot certificate may act as pilot in command of an aircraft that is carrying passengers or property for compensation or hire; nor may that person, for compensation or hire, act as pilot in command of an aircraft.<p>(b) A private pilot may, for compensation or hire, act as pilot in command of an aircraft in connection with any business or employment if:<p>(1) The flight is only incidental to that business or employment; and<p>(2) The aircraft does not carry passengers or property for compensation or hire.