Checkmark iconCan I Write This Off?

Can I deduct can i write off gas and mileage?

TL;DR

Yes, you can deduct either gas and other vehicle expenses or mileage, but not both. The deduction must be for business use of your vehicle, and personal use is not deductible.

Detailed Answer

You can choose between the actual expense method, where you deduct the actual costs of operating the vehicle (including gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation), or the standard mileage rate method, where you deduct a set rate per mile driven for business purposes. For 2023, the standard mileage rate is 65.5 cents per mile. You must use the same method consistently throughout the year. Personal commuting miles are not deductible. If you use the actual expense method, you must calculate the percentage of business use by dividing business miles by total miles driven. Keep in mind that if you use a vehicle for both personal and business purposes, only the business portion is deductible.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, report on Line 1.

Real World Example

A freelance graphic designer drives 5,000 miles for business meetings and client visits in 2023. Using the standard mileage rate, they can deduct $3,275 (5,000 miles x 65.5 cents). Alternatively, if they choose the actual expense method and their total vehicle expenses are $6,000 with 60% business use, they can deduct $3,600 ($6,000 x 60%).

Calculation Required

A calculation is required for this deduction.

For the standard mileage rate, multiply the total business miles by the IRS mileage rate. For actual expenses, calculate the total vehicle expenses and multiply by the percentage of business use (business miles/total miles).

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log with dates, destinations, and purpose of each trip. Retain all receipts for vehicle expenses if using the actual expense method. Consistency in record-keeping is crucial to substantiate the deduction.

IRS Reference

IRS Publication 463

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery DriversSales Representatives

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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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