If you drive to your short-term rental property for business purposes, those miles may be deductible. The IRS provides clear guidelines on mileage deductions in Publication 463 (Travel, Gift, and Car Expenses), but the deduction requires consistent documentation.
Standard Mileage Rate vs. Actual Expenses
The IRS offers two methods for deducting vehicle expenses. The standard mileage rate for 2025 is $0.70 per mile for business use. The actual expense method requires tracking all vehicle costs and calculating the business-use percentage. Your CPA can help determine which method produces a better result for your situation.
Trips That May Qualify
Generally, trips with a business purpose related to your STR may be deductible. Common examples include driving to the property for turnovers, inspections, or maintenance; trips to purchase supplies; meetings with contractors or property managers; and trips to your CPA's office for STR-related business. Your CPA can clarify what qualifies in your specific situation.
IRS Documentation Requirements
Per Publication 463, the IRS requires contemporaneous records for each trip — meaning documentation created at or near the time of the trip. Required elements include the date, destination, business purpose, and miles driven. A mileage log that is reconstructed from memory at year-end may not satisfy IRS requirements.
The Numbers Can Add Up
For illustration: if your property is 30 miles away and you make 50 round trips per year, that's 3,000 business miles. At the 2025 standard rate, that's a potential $2,100 deduction. Add supply runs and other trips, and the total may be significantly higher.
Making Tracking Easy
The challenge with mileage deductions is consistent logging. DeductFlow's mileage tracker lets you log trips as they happen — date, purpose, miles — and automatically calculates the deduction at the current IRS rate. Everything exports alongside your other records for your CPA.