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Can freelancers deduct is gas deductible for self employed?

TL;DR

Gas expenses are generally deductible for freelancers if they are directly related to business activities. However, only the portion used for business purposes is deductible, not personal use.

Detailed Answer

Freelancers can deduct gas expenses when the vehicle is used for business purposes, such as traveling to client meetings or purchasing supplies. The IRS allows for two methods: the actual expense method, where you track all vehicle-related expenses including gas, or the standard mileage rate, which covers gas and other vehicle costs. Personal use of the vehicle must be excluded from the deduction. For example, if a freelancer uses their car 60% of the time for business, only 60% of the gas expenses are deductible. It's important to maintain a logbook or use an app to track mileage and distinguish between business and personal use.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the actual expense method, additional details may be required.

Real World Example

A freelance graphic designer drives 10,000 miles in a year, with 6,000 miles for business purposes. Using the standard mileage rate of 65.5 cents per mile (2023 rate), they can deduct $3,930 (6,000 miles x $0.655) as a business expense.

Calculation Required

A calculation is required for this deduction.

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

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records such as mileage logs, receipts for gas purchases, and a calendar of business trips. Use a mileage tracking app to ensure accuracy and maintain a clear distinction between business and personal use.

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 25, 2025

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