Schedule C for Turo hosts: standard mileage or actual expenses?
If you rent out cars as a business in the US, your income and expenses are usually reported on Schedule C. One of the first questions is how to deduct the cost of running each car. There are two common methods, and the records you need are different for each one.
This is general information, not tax advice. Rules depend on how you operate and change over time. Confirm everything with a CPA.
The two methods in plain words
Standard mileage rate. You multiply the business miles you drove by a rate that the IRS publishes each year. It already includes things like fuel and wear, so you do not deduct those separately. Check the current rate on the IRS website.
Actual expenses. You add up what the car really costs to operate: fuel, repairs, insurance, registration, cleaning supplies, tires, and so on. Depreciation is part of this method as well.
Which records each method needs
| Standard mileage | Actual expenses | |
|---|---|---|
| Miles driven for the business | Required, with dates | Needed to split business and personal use |
| Fuel, repairs, insurance | Not deducted separately | Required, with receipts |
| Depreciation | Built into the rate | Calculated separately |
| Effort | Lower | Higher |
Why the first year matters
For a car you own, the method you use in the first year can limit what you may choose later. Some hosts discover this too late. If you are about to put a new car into service, talk to your CPA before you start using it, not after you file.
A simple way to compare
For one car and one year, estimate both numbers:
- Mileage method: business miles x the IRS rate.
- Actual method: total real costs for the year, plus depreciation, times the business-use percentage.
Higher deduction is not automatically better: the right choice also depends on the car, how many miles it drives, and the rules that apply to it. That is exactly why your CPA should make the final call.
What to track from day one
- A mileage log for every car, with dates, even if you end up using actual expenses. It is the proof of business-use percentage.
- Receipts for every expense, attached to the car they belong to.
- Trip records that show the car was rented, because they justify business use.
- Separate accounts for the business.
Where FleetWise helps
FleetWise keeps a mileage log, records each expense against its car, and prepares a Schedule C-style report so you can hand your accountant organized numbers instead of a box of receipts. See how reports look in the demo, or start free.
FleetWise brings your Turo earnings, expenses, tolls and direct bookings into one real set of books.
Start your free trial