GUIDE

Should I use the standard mileage rate or actual expenses?

Q: Should I use the standard mileage rate or actual expenses?

Decide based on which method provides a larger deduction for your specific vehicle costs. TradesTimer simplifies this by automatically logging every trip's distance, providing the precise data you need to compare both methods.

The Standard Mileage Rate

This method allows you to deduct a fixed amount for every business mile driven. For the 2025 tax year, the IRS rate is 70 cents/mile, and for 2026, it increases to 72.5 cents/mile.

To use this method, you must elect the standard mileage rate in the first year a car is used for business.

The Actual Expenses Method

This method requires you to track all actual costs of operating your vehicle, such as fuel, repairs, insurance, and depreciation.

It can be more beneficial if your total vehicle operating costs exceed the standard mileage deduction. This is general info, NOT tax advice.

Automating Your Records

A valid IRS mileage log must record the date, destination, business purpose, and business miles for every trip, kept weekly at a minimum.

TradesTimer automates this by using background GPS to detect 'stops' and 'trips.' It records the distance for every trip automatically, so you don't have to manually start or stop timers.

FAQ

Does TradesTimer track my fuel receipts?

No, TradesTimer is a mileage and trip logger, not an expense or accounting tool.

How often should I review my mileage logs?

To maintain a valid log, you should review and update your records at least weekly.

Last updated 2026-06-08.