Can I Deduct Mileage for My Business?
If you’re driving for your business—whether it’s YouTube shoots, Shopify delivery runs, dental consultations, or creative collaborations—you may be eligible to deduct those miles on your taxes. Here’s what you need to know.
Two Methods to Calculate Mileage Deductions
The IRS allows two ways to deduct business vehicle use:
- Standard Mileage Rate (Simplified)
- For tax year 2025, the rate is 70 cents per business mile.
- Covers most vehicle-related costs such as gas, maintenance, insurance, and depreciation.
- You can deduct parking fees and tolls separately, on top of mileage.
- Actual Expense Method
- Deduct the actual costs of operating your vehicle, including:
- Gas, oil, repairs, tires
- Insurance, registration, licenses
- Depreciation or lease payments
- Parking and tolls
- Multiply total expenses by the percentage of the vehicle’s business use.
Choosing the Right Method & Switching Rules
- First year rule: If you use the standard mileage rate in your first year, you can choose either method in later years.
- But if you start with actual expenses, you’re locked into that method for that vehicle under IRS rules.
Example: Which Method Wins?
An Uber driver traveled 30,000 business miles in 2024.
- Standard rate (2024): 30,000 × $0.67 = $20,100
- Actual expenses: Total costs of $11,300 × 75% business use = $8,475
Result: Standard mileage wins by $11,625.
Keeping Good Mileage Records
Regardless of method, the IRS requires thorough documentation:
- A mileage log with date, destination, purpose, and miles driven.
- Odometer readings at start and end of year.
- Receipts for expenses if using actual method.
What Counts as “Business Mileage”?
You can deduct:
- Driving between work sites
- Trips from home to temporary business locations
- Errands related to business
Commuting to your regular workplace does not qualify as deductible.
Quick Reference Table
| Deduction Method | Key Features |
| Standard Mileage Rate | Easier to track; good for high-mileage users; 2025 rate is 70¢/mile |
| Actual Expense Method | May yield larger deduction for expensive vehicles or high maintenance costs, but needs detailed records |
| Switching Rule | Starting with standard gives flexibility; starting with actual locks method in future |
Why This Matters
Accurate mileage deductions can save thousands in taxes—especially for creators and professionals who rely on travel. Without careful tracking, you may pay taxes on income you never actually kept.
Get Expert Help Tailored to You
At Velin & Associates, Inc., we support:
- YouTubers, TikTokers, Shopify & Amazon sellers
- Filmmakers, Creators, Podcasters
- Doctors, Dentists, Beauty Salons, High-Net-Worth Individuals
Let us help you track vehicle use correctly, choose the best deduction method, and maximize your tax savings while staying compliant.
Contact Us Today:
Velin & Associates, Inc
8159 Santa Monica Blvd STE 198/200
West Hollywood, CA 90046
📞 323-902-1000
📧 dmitriy@losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.