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Can I deduct can i write off gas?

TL;DR

Gas expenses can be deductible if they are directly related to business use, but personal use of gas is not deductible. It's essential to differentiate between personal and business use to claim this deduction correctly.

Detailed Answer

Gas expenses are deductible when they are incurred as part of operating a vehicle for business purposes. This includes driving to meet clients, attending business meetings, or traveling between different work sites. However, commuting from home to your regular place of business is not deductible. Business owners can choose between deducting actual expenses (including gas) or using the standard mileage rate, which covers gas and other vehicle-related costs. For 2023, the standard mileage rate is 65.5 cents per mile. To deduct actual expenses, you must keep detailed records of all costs, including gas receipts, and calculate the percentage of business use. For example, if you drive 10,000 miles in a year and 6,000 of those are for business, you can deduct 60% of your actual vehicle expenses.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106 for employee business expenses, refer to Line 1.

Real World Example

A freelance photographer drives 8,000 miles in a year, with 5,000 miles for business purposes such as traveling to photo shoots and meeting clients. They choose to deduct actual expenses, including $1,200 spent on gas. They can deduct $750 (5,000/8,000 miles = 62.5% of $1,200) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, divide the business miles by total miles driven to find the business-use percentage, then apply this percentage to the total gas expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, including dates, destinations, and purpose of trips. Retain all gas receipts and any other vehicle-related expense documentation. Consider using a mileage tracking app for accuracy.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), IRC §162.

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsContractors

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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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