Can I Write This Off?

Can freelancers deduct can i write off gas on my taxes?

TL;DR

Freelancers can generally deduct gas expenses if they are directly related to business use of their vehicle, but personal use is not deductible. It's important to differentiate between business and personal mileage.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients or traveling to a work site. Personal commuting expenses, like driving from home to a regular place of business, are not deductible. Freelancers can choose between deducting actual vehicle expenses, which include gas, or using the standard mileage rate. If using actual expenses, they must track all vehicle-related costs and allocate them based on the percentage of business use. For example, if 60% of the total miles driven in a year are for business, then 60% of the gas expenses can be deducted. The IRS requires detailed records to substantiate the business use percentage.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, it would be included in the total vehicle expenses.

Real World Example

A freelance graphic designer drives 10,000 miles in a year, with 6,000 miles for business purposes. They spend $1,500 on gas. They can deduct 60% of their gas expenses, which is $900, as a business expense on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, determine the percentage of total miles driven for business purposes. Multiply the total gas expenses by this percentage. For example, if 60% of total miles are for business, multiply the total gas expenses by 0.60.

Audit Risk & Documentation Tips

The audit risk is moderate. Taxpayers should maintain a detailed mileage log, including dates, destinations, and business purposes of trips. Keep all gas receipts and any other vehicle-related expenses. Using a mileage tracking app can help maintain accurate records.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersConsultantsReal Estate AgentsIndependent Contractors

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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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