Deductions
5 min read
Mileage or actual car costs: which one to use
The standard rate is simpler. Actual costs win for some expensive cars. Here is how to tell.
Standard mileage
You multiply business miles by the IRS rate for the year. The rate was 70 cents a mile for 2025. Parking and tolls for business trips are added on top.
Actual costs
You add up gas, insurance, repairs, registration and depreciation, then deduct the business share. It needs every receipt and a log of all miles, not only business ones.
What to log
Date, start and end, purpose and miles for every business trip. Ashford can log trips from your phone and fills in the purpose from your calendar when it can. Commuting to a regular office is never deductible.
Connect the accounts you get paid through and Ashford shows your fourth-quarter estimate in about five minutes. Bookkeeping and estimates are free; filing starts at $24 a month.