Keeping records of mileage is an important part of maximizing your tax savings as a P2P car rental host. By keeping accurate records of your mileage, you can effectively reduce your taxable income and save money on your taxes.
You can decide to deduct either your actual expenses (fuel, repairs, maintenance, and depreciation) or your standard mileage rate, which is a set amount for each business mile driven. As of January 2024, the standard mileage rate for business use of a vehicle is $0.67 per mile and for 2025 is $0.70 per mile, $0.33 of that rate is depreciable rate that can be claim be the business taxpayer.
Note that the IRS expects car rental hosts to keep a log of all the miles you drive for business purposes. This includes the date, destination, purpose of the trip, and starting and ending odometer readings.
