Mileage Log Template for Contractors (IRS-Ready)
A mileage log that survives an audit records, for every business trip: the date, the destination/purpose, the miles, and ideally the odometer reading. You then deduct either the IRS standard mileage rate (70¢/mile for 2025 — the IRS resets it each year, so confirm the current rate) or your actual vehicle costs — not both. For most contractors with a paid-off work truck, the standard rate wins and the log is the only thing standing between you and a denied deduction.
The vehicle deduction is one of the biggest a contractor has — and one of the first things the IRS disallows when there’s no contemporaneous log. “I drove about 15,000 miles” doesn’t survive scrutiny. A dated log does. Here’s what to track and how to choose your method.
What an IRS-ready mileage log records
- Date of the trip.
- Destination + business purpose — “Supply house → 1421 Oak St job,” not just “driving.”
- Miles driven for that trip.
- Starting/ending odometer where you can — and your odometer reading on Jan 1 and Dec 31 to establish total annual miles.
The key word the IRS uses is contemporaneous — logged at the time, not reconstructed in April from memory. A spreadsheet you update weekly, or an app that does it automatically, both qualify. (See IRS Pub 463 for the recordkeeping rules.)
Standard mileage rate vs actual expense
Two methods, pick one per vehicle:
- Standard mileage rate — multiply business miles by the IRS rate (70¢/mile for 2025). Simple, and usually better for an owned, paid-off, fuel-efficient vehicle.
- Actual expense — add up gas, insurance, repairs, depreciation, etc., then deduct the business-use percentage. Often better for an expensive or heavy vehicle with high running costs.
Either way you need the log, because both methods depend on knowing your business-use percentage (business miles ÷ total miles).
A real example
| Item | Detail | Value |
|---|---|---|
| Business miles (logged) | 2026 work driving | 12,000 |
| Standard rate | example @ $0.70 | $0.70 |
| Mileage deduction | $8,400 |
At a 22% effective tax rate, that $8,400 deduction is roughly $1,848 back in your pocket — entirely dependent on having the log. Skip the log, and an auditor can wipe the whole thing out.
Contractor Bookkeeping Spreadsheet (Income, Expense & Mileage)
Tracks mileage alongside income and expenses, with business-use percentage and a year-end deduction summary already built. Editable in Excel and Google Sheets — update it weekly and tax season is a non-event.
Commuting doesn’t count
The trip from home to your first regular work location is generally non-deductible commuting. But travel between job sites, to suppliers, to the bank for the business, and to client meetings is deductible. If you have a qualifying home office, the calculus changes — more trips can count. Keep the purpose column honest and specific; that’s what separates a deductible mile from a commute. (Informational, not tax advice — confirm with your CPA.) Pair the log with a per-job estimate and clean invoicing so your books reconcile at year end.
Trade Templates Co. builds back-office templates for solo trade businesses, QA’d against real job numbers before they ship. Informational, not tax advice — confirm the current IRS rate and rules with your CPA.
Frequently asked questions
What does the IRS require in a mileage log?
Date, destination and business purpose, miles, and ideally odometer readings — recorded contemporaneously (at the time), not reconstructed later.
Standard mileage rate or actual expenses?
Standard rate (70¢/mile for 2025) is simpler and usually better for an owned, efficient vehicle; actual expense can win for expensive or heavy vehicles. You need the log either way.
Does my commute count?
No — home to your first regular work location is non-deductible commuting. Trips between job sites, to suppliers, and to clients are deductible.
Can I keep the log in a spreadsheet?
Yes — a spreadsheet updated weekly or a tracking app both satisfy the contemporaneous-record rule.
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