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Can I deduct can you write off gas on taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. However, personal use of a vehicle is not deductible, and accurate records must be maintained to substantiate the business use portion.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. For example, if you use your car to travel to meet clients, deliver goods, or attend business meetings, you can deduct the cost of gas as a business expense. However, commuting from home to your regular place of business is considered personal use and is not deductible. To claim this deduction, you can either use the actual expense method, which includes gas, or the standard mileage rate, which encompasses gas and other vehicle-related expenses. The IRS requires that you keep detailed records of your business mileage and the purpose of each trip. For instance, if you drove 10,000 miles in a year and 6,000 of those were for business, you could deduct 60% of your gas expenses if using the actual expense method.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses.

Real World Example

A freelance graphic designer drives to various client sites for meetings and project discussions. Over the year, she drives 5,000 miles for business purposes. She keeps a log of her trips and chooses to use the actual expense method. She spends $1,200 on gas for the year, and since 50% of her driving is for business, she deducts $600 as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, determine the percentage of business miles driven compared to total miles driven. Multiply this percentage by the total gas expenses for the year. For example, if 60% of your total mileage is for business, and you spent $1,000 on gas, you can deduct $600.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log, including dates, destinations, business purposes, and odometer readings. Retain all gas receipts and any other documentation that supports the business use of your vehicle. Consider using a mileage tracking app for accuracy and convenience.

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 15, 2025

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