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

TL;DR

Freelancers can generally deduct gas as a business expense if it is used for business-related travel, but they must differentiate between personal and business use and maintain proper documentation.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities, such as traveling to meet clients, attending business meetings, or purchasing supplies. Freelancers must distinguish between personal and business use of their vehicle. If a vehicle is used for both purposes, only the business portion of gas expenses is deductible. Freelancers can choose between the actual expense method, which includes gas, or the standard mileage rate method, which covers all vehicle expenses. The IRS requires accurate records, such as mileage logs or receipts, to substantiate these deductions.

Where to Put It on the Tax Form

Schedule C, Line 9 (Car and truck expenses)

Real World Example

A freelance graphic designer drives 200 miles in a month for client meetings and project site visits. They track these miles and choose to use the actual expense method, deducting $50 spent on gas for these business trips.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses using the actual expense method, track total business miles and divide by total miles driven to find the business use percentage. Apply this percentage to total gas expenses for the deduction.

Audit Risk & Documentation Tips

Moderate audit risk. Freelancers should keep detailed mileage logs, including dates, destinations, and purpose of trips, as well as gas receipts. Using a mileage tracking app can simplify record-keeping and help substantiate the deduction if audited.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses)

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 25, 2025

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