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Can I deduct can you write off gas?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle, but personal use is not deductible. It's important to differentiate between actual expenses and the standard mileage rate method for claiming deductions.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, traveling between job sites, or making deliveries. You can choose to deduct actual expenses, which include gas, or use the IRS standard mileage rate, which covers all vehicle expenses. Personal commuting costs are not deductible. For example, if you drive your car 70% for business, you can deduct 70% of your gas expenses if using the actual expense method. It's crucial to maintain detailed records of your business mileage and 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, report on Line 1.

Real World Example

A freelance graphic designer who drives 10,000 miles a year for business meetings and client visits can deduct gas expenses. If they choose the actual expense method and spend $1,500 on gas, they can deduct $1,050 (70% of $1,500) if 70% of their driving is for business.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing business miles by total miles driven. Multiply this percentage by the total gas expenses to determine the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log with dates, destinations, and purpose of trips. Keep all gas receipts and any related vehicle maintenance records. Use apps or spreadsheets to track mileage and expenses consistently.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales Professionals

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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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