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Can freelancers deduct is gas a business expense?

TL;DR

Yes, freelancers can deduct gas as a business expense if it is used for business purposes.

Detailed Answer

Freelancers can deduct gas expenses if they use their vehicle for business purposes, such as traveling to meet clients or purchasing supplies. However, only the portion of gas used for business activities is deductible. Personal use of the vehicle must be excluded from the deduction. Freelancers can choose between the actual expense method, which includes gas, or the standard mileage rate, which incorporates gas and other vehicle expenses.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 9 (Car and truck expenses)

Real World Example

A freelance photographer drives to various locations for photo shoots. They track the miles driven for each business trip and use the actual expense method to deduct the cost of gas used during these trips.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible gas expense using the actual expense method, track all business-related gas purchases and maintain records of business mileage versus total mileage to determine the business-use percentage. Multiply the total gas expense by this percentage to find the deductible amount.

Audit Risk & Documentation Tips

To minimize audit risk, maintain a detailed mileage log showing dates, destinations, and purposes of trips. Keep all gas receipts and records of total and business miles driven. Consider using apps or tools to track mileage and expenses accurately.

IRS Reference

IRS Publication 463 (Travel, Entertainment, Gift, and Car Expenses), IRS Publication 535 (Business Expenses)

Relevant Industries

FreelancersConsultantsIndependent ContractorsSmall Business

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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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