How to Keep a Record of Miles & Gas for Tax Deductions

by Mark Kennan
Deduct repair and maintenace costs when you use the IRS actual expense method.


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When you drive vehicles for your business, you can include the associated expenses as a deduction on your income tax return. You can use either the standard mileage method, which calculates your deduction based on how far you drive and does not allow gas costs to be added, or the actual costs, which allows you to include gas, maintenance and oil but not the standard mileage rate. By keeping the required records for both the standard mileage method and the actual expenses method, you can calculate both valuations at the end of the year and claim the method that results in the larger deduction.


Create a mileage log template that has columns for the date of travel, where you drove, the starting and ending odometer readings, how far you drove and the business purpose of the trip.


Update the mileage log as you drive the car rather than waiting until the end of the year and guessing at your deduction. For example, one entry might read, "8/15; trip to Chicago from Springfield; 115,000; 115,210; 210 miles; sales call to potential customer."


Keep all of your receipts or invoices for any gas purchased or other expenses incurred, such as oil changes, with each trip.


  • For actual expenses, a mileage log helps establish business use percentage. You should also retain receipts, invoices and other documentation to show cost and establish the identity of the vehicle for which the expense was incurred. For depreciation purposes, you need to show the original cost of the vehicle and any improvements as well as the date it was placed in service.


  • You do not have to attach your mileage and gas records with your tax return, but you do have to keep them in case you get audited.

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