Your AFH Mileage Deduction Guide for 2025

If you run an Adult Family Home (AFH), you probably spend a lot of time behind the wheel. From picking up groceries to transporting residents to appointments, driving is part of your daily routine.

But here’s what many AFH owners don’t realize: those miles could be saving you thousands on your taxes. The key is knowing which trips count as business deductions and which don’t. Let’s make it simple.

2025 IRS Mileage Rates

According to the Internal Revenue Service (IRS), the standard mileage rates for 2025 are: IRS+2IRS+2

• 70 cents per mile → Business miles

• 21 cents per mile → Medical miles (for yourself or dependents)

Note: The IRS has not yet announced the official rate for 2026 at this time. Many expect it to increase slightly, but until the notice is issued you should use the 2025 rate for trips in 2025.

When You Can Deduct at 70 Cents Per Mile (Business Mileage)

Business mileage applies to any driving directly related to running your AFH. Here are some common examples:

• Attending conferences or trainings for your AFH ✔️

• Visiting other AFH facilities or networking ✔️

• Transporting residents to medical appointments ✔️ (Yes — resident medical trips count as business!)

• Picking up prescriptions or supplies for your AFH ✔️

• Buying groceries or supplies for resident care ✔️

Example: How Business Mileage Adds Up

Here’s how just a few regular drives can add up to big deductions:

• Grocery & supply run: 20 miles each way = 40 miles round trip × $0.70 = $28 per trip → once per week → ~$1,456/year

• Transporting 2 residents to appointments every 2 weeks: 15 miles each way = 30 miles round trip → $21 per trip × 2 residents = $42 × 26 trips = ~$1,092/year

• Combined = ~$2,548 deduction from just these two activities

When You Must Use the 21 Cents Per Mile Rate (Medical Mileage)

Some miles are deductible — but not as business expenses. For example:

• Driving yourself or family members to personal medical appointments ➜ deductible only if you itemize your deductions and use the medical miles rate of 21 cents per mile

• These miles aren’t business miles for your AFH, so you apply the medical rate, not the business rate

Why Tracking Mileage Is Critical

Failing to track your mileage can cost you thousands each year. To get every deduction you’re entitled to and protect yourself, make mileage tracking part of your routine:

• Use a mileage‐tracking app or keep a log that records date, destination, miles driven, and purpose

• Separate business miles vs. personal or medical miles

• Total your business miles regularly (monthly or annually)

• Good records support your deduction and protect you in case of an audit

Final Thoughts

Driving comes with the territory when you own an AFH. By knowing when to apply the business vs. medical mileage rates — and when miles are not eligible — you make sure you’re not leaving money on the table.

AFH owners who track and deduct their miles properly pay less tax and run stronger businesses.

If you’d like help setting up a simple mileage tracking system and proper bookkeeping tailored for AFH owners, I’m here for you.

👉 Call Christina at 564-888-1687 or email christina@acuitytaxgroup.com to schedule a free consultation.