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Can freelancers deduct can i write off gas?

TL;DR

Freelancers can generally deduct gas expenses if they are directly related to business activities, but they must distinguish between personal and business use.

Detailed Answer

Gas expenses are deductible for freelancers when the vehicle is used for business purposes, such as traveling to client meetings or purchasing supplies. Personal use of the vehicle is not deductible. Freelancers can choose between deducting actual expenses (including gas) or using the IRS standard mileage rate. To use actual expenses, they must keep detailed records of all costs associated with the vehicle. The standard mileage rate simplifies this by allowing a deduction based on miles driven for business purposes, which inherently accounts for gas and other vehicle expenses.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses.

Real World Example

A freelance photographer drives 3,000 miles in a year for client shoots and meetings. They can either deduct the actual cost of gas and other vehicle expenses or use the standard mileage rate. If they choose the standard mileage rate for 2023, they would multiply 3,000 miles by the rate (e.g., $0.655 per mile), resulting in a $1,965 deduction.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the standard mileage rate, multiply the total business miles driven by the IRS mileage rate for the year. For actual expenses, calculate the percentage of business use and apply it to total vehicle expenses, including gas.

Audit Risk & Documentation Tips

Moderate audit risk. Freelancers should maintain a mileage log detailing the date, destination, purpose, and miles driven for each business trip. Keep receipts for all vehicle expenses if using the actual expense method. Documentation should be kept for at least three years.

IRS Reference

IRS Pub 463

Relevant Industries

FreelancersConsultantsReal Estate AgentsDelivery Drivers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 25, 2025

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