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Can I deduct can you write off fuel on taxes?

TL;DR

Fuel expenses can be deductible if they are directly related to business use.

Detailed Answer

Fuel costs can be deducted if they are incurred for business purposes. This typically applies to self-employed individuals, freelancers, and businesses that use vehicles for business operations. Personal fuel expenses are not deductible. For example, if you use your car for both personal and business purposes, only the portion of fuel used for business can be deducted. You can choose to deduct actual expenses, including fuel, or use the standard mileage rate, which covers fuel and other vehicle-related costs.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, under 'Car and truck expenses'.

Real World Example

A freelance photographer drives to various locations for photo shoots. They track their mileage and fuel expenses, and at tax time, they deduct the portion of fuel costs related to their business trips.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, determine the percentage of business use of the vehicle by dividing business miles by total miles driven, then apply this percentage to the total fuel expenses.

Audit Risk & Documentation Tips

Maintain a detailed mileage log and keep all fuel receipts. Document the business purpose of each trip to substantiate your deduction in case of an audit.

IRS Reference

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

Relevant Industries

FreelancersSmall BusinessDelivery ServicesReal Estate Agents

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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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