1. Standard Mileage Rate
For 2025 the standard mileage rate was 70 cents per business mile. For 2026 the IRS set two rates — 72.5 cents for January through June, and 76 cents for July through December — so a full-year log should apply each period's rate to that period's miles. Verify the current rate on irs.gov. This rate covers depreciation, gas, oil, insurance, repairs, and other vehicle costs. Using the standard rate simplifies recordkeeping and generally requires less documentation than the actual expense method.
2. What Qualifies as Business Travel
Driving from your home or office to a signing location is deductible business mileage. Return travel to your home or office is also deductible. Travel between multiple signing locations in the same day is fully deductible. Commuting from home to a regular workplace is not deductible.
3. Contemporaneous Mileage Logs
The IRS requires contemporaneous mileage logs. Reconstructing logs at year-end from memory or appointment books may not withstand audit scrutiny. Your log should include: date, starting location, destination, business purpose, and miles traveled. Apps and mileage tracking software can automate this process.
4. Sample Log Entry
Date: 3/15/2026 | From: Home Office | To: 123 Main St, Anytown | Purpose: Loan signing for ABC Title Co. | Miles: 18 | Notes: Retained copy of confirmation email.
5. Actual Expense Method
Alternatively, you can deduct actual vehicle expenses: gas, oil changes, repairs, insurance, registration, depreciation, and leases. This method requires tracking all expenses and calculating the business use percentage. Business use percentage equals business miles divided by total miles driven. Only that percentage of expenses is deductible.
6. Once Chosen, Stay Consistent
If you use the standard mileage rate in the first year you place a vehicle in service, you may switch to actual expenses in a later year (though straight-line depreciation applies if you do). But if you use actual expenses — including depreciation — in the first year, you cannot switch to the standard mileage rate for that vehicle later. Your first-year choice drives your options, so choose carefully. One more rule for **leased vehicles**: if you choose the standard mileage rate in the first year of a lease, you must use the standard mileage rate for the entire lease period. The flexibility to switch methods belongs to owned vehicles.