Welcome back to The Write-Off.
Last week we tackled the June 15 deadline. This week, something that puts money back in your pocket: your vehicle. If you drive for your business, you're likely sitting on one of the easiest deductions there is — and one of the most commonly fumbled.
The Main Thing: Two ways to deduct your vehicle
The IRS gives you a choice, and you take whichever saves you more:
1. The standard mileage method. Multiply your business miles by the IRS rate — 72.5 cents per mile for 2026. Drive 5,000 business miles and that's a $3,625 deduction, no receipts for gas or repairs required. Simple and clean.
2. The actual expense method. Add up what the car actually costs you — gas, insurance, repairs, registration, depreciation — and deduct the business-use percentage. More paperwork, but it can win big if you drive an expensive vehicle or have high costs.
Most self-employed people with a normal car come out ahead with the standard mileage method and far less hassle. One catch worth knowing: if you want the flexibility to choose, use the standard mileage method the first year you put the car in service — starting there keeps your options open in later years.
The trap: not every mile counts
Business miles are trips for work — to a client, a job site, the bank, the supply store. Commuting from home to a regular workplace is not deductible. But here's the key exception: if your home is your principal place of business, the drive from your home office to a client does count. For many self-employed people, that flips a lot of "commuting" into legitimate business miles.
Parking and tolls for business trips are deductible too — on top of either method.
Do This Now
Start a mileage log today. For each business trip, note the date, where you went, the purpose, and the miles. A phone app that auto-tracks (MileIQ, Everlance) makes this painless.
Write down your odometer reading now, so you have a clean starting point for the year.
Don't try to reconstruct miles from memory in April — a contemporaneous log is what holds up if the IRS ever asks.
On the Calendar
Quick reminder from last week: if you haven't sent your Q2 estimated payment, it's due Monday, June 15. Don't let it slip.
Quick Hits
The mileage log is the #1 thing auditors check on vehicle deductions. Good records turn a deduction into one you can defend.
Switched cars mid-year? Track each vehicle separately.
Even short local errands add up — five miles here and there across a year is real money at 72.5¢ each.
See you next week,
Tyler, EA
The Write-Off is general educational information, not personalized tax advice. Your situation may differ — consult a tax professional about your specifics. The Write-Off