Sourdough 2025 / 2026

Year one mileage choice locks the vehicle in

Pick standard mileage in year one or never get it on that car again

  1. Standard mileage is one number per mile. It covers gas, repairs, insurance, maintenance, and depreciation, all bundled.
  2. The alternative is 'actual': you save every gas receipt, every oil change, every repair, and depreciate the car over six years. Hard to do, and only a bigger deduction for expensive new cars.
  3. Pick standard mileage in year one and you can switch to actual later. Pick actual in year one and you're stuck with actual for that car's whole life.
  4. For most full-time drivers, standard mileage wins. For a $50K new vehicle with low business miles, actual can win. Run both before deciding.

SourceIRS Pub 463 Ch. 4; IRS Pub 946 Ch. 1

Note. General information, not tax advice. Tips reflect federal law and California rules where noted, current as of May 2026. For advice specific to your situation, consult a licensed CPA or Enrolled Agent. Sourdough Tax, Inc. is not your tax advisor unless we have explicitly accepted that engagement in writing.