Answers · Individual tax · Form 1040
Vehicle Expenses: Actual Expenses vs. Mileage
Eligible taxpayers may use standard mileage or actual expenses subject to method and substantiation rules. For 2026 business mileage, the IRS rate is 72.5 cents per mile for Jan. 1-June 30 and 76 cents per mile for July 1- Dec. 31. Keep contemporaneous mileage records.
This question is answered in full on the main page for it.
How it works
The rule, and what it turns on.
Strict substantiation applies to business use. Commuting is generally personal. Standard mileage substitutes for many operating costs; actual method uses the business share of costs and depreciation.
Example
10,000 documented business miles from July-Dec. 2026 can yield $7,600 using the 76-cent rate if the taxpayer qualifies.
Common mistakes
What we see go wrong, and what we do instead.
- Estimating mileage at year-end.
- Deducting commuting.
- Using mileage plus full actual operating costs.
A better approach
- Use contemporaneous mileage tracking and compare allowable methods when permitted.
Authority
Where this comes from, so you can check it.
IRC §§162 and 274(d); Treas. Reg. §1.274-5T; IRS Publication 463; current IRS standard mileage guidance.
Relevant case law
Commissioner v. Flowers, 326 U.S. 465 (1946) - travel expenses must have the required business connection;
ordinary commuting/personal choices are not converted into business travel.
Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930) - reasonable estimates may sometimes be permitted, but the rule
does not override strict substantiation requirements such as IRC §274(d).
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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