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If your business driving has dropped this year, it might be time to rethink how you deduct your vehicle expenses.

If your business driving has dropped this year, it might be time to rethink how you deduct your vehicle expenses.

For 2025, the actual expense method (fuel, repairs, insurance, plus depreciation) can often beat the standard mileage rate of 70¢ per business mile, especially if your mileage is low.Why? Because you can still claim depreciation under the actual method — even if you barely drove.

  • The smart move:
  • Run the numbers for both methods using your 2025 records and see which gives you the bigger deduction.

Important: If you take depreciation using the actual expense method this year, you can’t switch back to the mileage method next year. Choose carefully.