Standard mileage vs actual expenses for drivers

If you drive for your business, you can usually deduct the cost — but there are two methods, and you generally pick one. The standard mileage method is simpler; the actual-expense method can be larger but involves depreciation and more record-keeping.

Standard mileage

You multiply your business miles by the IRS standard rate for the year. The catch is documentation: you need a contemporaneous log showing the date, business purpose and miles for each trip. Reconstructing it months later from memory is weak support if questioned.

Actual expenses

You deduct the business-use share of real costs — gas, repairs, insurance and depreciation. This involves depreciation rules and is a good moment to talk to a CPA/EA, so our checker routes actual-expense situations to review rather than self-prep.

What to keep either way

• A mileage log kept as you drive (an app or a notebook both work).
• Total business miles and total miles for the year.
• Receipts if you think actual expenses might be the better method.

Sources

• IRS — Topic on Car and Truck Expenses; Schedule C Instructions