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Can I deduct can you write off gas as a business expense?

TL;DR

Yes, you can deduct gas as a business expense if it is used for business purposes, but it's important to distinguish between personal and business use and maintain proper documentation.

Detailed Answer

Gas expenses can be deducted if they are directly related to the operation of a business vehicle. This deduction is applicable when the vehicle is used for business activities such as client meetings, transporting goods, or traveling between job sites. However, commuting from home to a regular place of business is not deductible. You can choose between deducting actual expenses, including gas, or using the standard mileage rate. The actual expense method requires detailed records of all vehicle-related expenses, while the standard mileage rate simplifies the process by multiplying the business miles driven by the IRS rate. For 2023, the standard mileage rate is 65.5 cents per mile. It's crucial to maintain a log of business miles driven and keep receipts for gas purchases if using the actual expense method.

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 for employee business expenses.

Real World Example

A freelance graphic designer drives to meet clients and attend industry events. They drive 5,000 business miles in 2023. Using the standard mileage rate, they can deduct $3,275 (5,000 miles x $0.655) on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the standard mileage rate, multiply the total business miles driven by the IRS mileage rate for the year. If using actual expenses, sum all vehicle-related costs and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed log of business miles driven, including dates, destinations, and purpose of trips. Save all gas receipts and maintain records of total miles driven for the year to substantiate the business-use percentage if using actual expenses.

IRS Reference

IRS Pub 463, Travel, Gift, and Car Expenses; IRS Pub 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 25, 2025

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