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Can freelancers deduct can i write off gas as a business expense?

TL;DR

Freelancers can generally deduct gas as a business expense if it is directly related to business use of their vehicle. However, they must choose between deducting actual expenses or using the standard mileage rate.

Detailed Answer

Gas expenses are deductible when the vehicle is used for business purposes, such as traveling to client meetings or job sites. Freelancers can choose to deduct actual vehicle expenses, which include gas, or they can use the IRS standard mileage rate, which covers gas and other vehicle-related costs. Personal use of the vehicle is not deductible. For example, if a freelancer uses their car 60% for business, they can deduct 60% of their gas expenses if opting for the actual expense method. It's important to maintain detailed records of business miles driven and the purpose of each trip.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using actual expenses, include on Line 27a as 'Other expenses'.

Real World Example

A freelance graphic designer drives 5,000 miles in a year, with 3,000 miles for business purposes. They can either deduct 60% of their actual gas expenses or use the standard mileage rate for the 3,000 business miles. If gas costs $1,500 for the year, they can deduct $900 (60% of $1,500) if using actual expenses.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using actual expenses, determine the percentage of business use by dividing business miles by total miles driven. Multiply this percentage by the total gas expenses. Alternatively, use the IRS standard mileage rate for business miles driven.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log, including dates, destinations, and purpose of each trip. Retain gas receipts and any maintenance records if using actual expenses. Ensure personal and business use is clearly distinguished.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), IRS Topic No. 510 (Business Use of Car).

Relevant Industries

FreelancersConsultantsReal Estate AgentsSales Professionals

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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 15, 2025

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