Daperis CPACan I Write Off My Car for My Business?
Yes, you can write off a vehicle you use for business, and no, it doesn't need to be titled in the business's name. What matters is documented business use. The bigger question isn't whether you can deduct it. It's which of the two methods gets you the bigger number, and that depends on your specific vehicle and mileage, not a rule of thumb someone told you at a networking event.
Your Two Options
Standard mileage rate. The standard mileage rate for 2026 is 72.5 cents per business mile from January 1 through June 30, rising to 76 cents per mile from July 1 through December 31. You track miles driven for business, apply the rate, and that's your deduction. No receipts for gas or repairs required, just a mileage log.
Actual expense method. You track everything: gas, insurance, repairs, depreciation, registration, lease payments, and apply your business-use percentage to the total. This tends to win out for vehicles that are expensive to operate or that you use almost entirely for business.
The Rules That Trip People Up
You have to choose in year one, and it locks you in
If you own the vehicle (not lease it) and you use the standard mileage rate in the first year it's in service, you can switch to actual expenses in a later year. Go the other way first, actual expenses in year one, and you're locked into that method for the life of the vehicle. For leased vehicles, whichever method you pick applies for the entire lease term. Choose deliberately.
Track every mile, every time
The IRS requires a contemporaneous mileage log: date, destination, business purpose, and miles driven. "I probably drove about 8,000 business miles" doesn't survive an audit. An app that logs trips automatically is worth the five dollars a month.
Personal use isn't free
If you use the vehicle 60% for business and 40% to pick up your kids and run errands, you deduct 60% of the actual expenses, or you only count the business miles under the mileage method. Commuting from home to a regular place of business doesn't count as business mileage either, even if you're self-employed.
One big change for W-2 employees
If you're an employee (not self-employed) driving your own car for work, you generally can't deduct those unreimbursed vehicle expenses anymore. This deduction is really built for the self-employed, LLC owners, and small business operators who aren't getting mileage reimbursed by an employer.
Keep It Simple / Key Takeaway 🍕
Drive 15,000 business miles this year at the blended 2026 rate and you're looking at roughly $11,000 in deduction, no receipts required beyond your log. If you're driving a gas-guzzling work truck instead of an efficient sedan, run the actual expense numbers too. The cheaper the car is to operate, the more the mileage rate tends to win.
Vehicle rules are one part of running the business side of a trade. Here is how we help tradespeople with entity setup, equipment write-offs, and paying yourself.
Disclaimer: This article is for educational and informational purposes only and is not intended as financial, investment, legal, or tax advice. The author assumes no liability whatsoever in connection with its use. This content is not an exhaustive explanation of any topic, practice or process. You should always seek the advice of a licensed professional before making any accounting, tax, financial, investment or legal decision.