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Can I deduct can you write off gas on your taxes?

TL;DR

Gas expenses can be deductible if they are incurred for business purposes, but personal use of gas is not deductible. It's important to distinguish between personal and business use to correctly claim this deduction.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities. For example, if you use your vehicle to travel to client meetings, deliver goods, or attend business-related events, you can deduct the cost of gas. However, commuting from home to your regular place of business is considered a personal expense and is not deductible. You have the option to deduct actual expenses, which include gas, or use the standard mileage rate, which covers all vehicle expenses including gas. The IRS requires that you maintain detailed records of your business mileage and expenses if you choose to deduct actual 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, it would be on Line 1.

Real World Example

A freelance graphic designer drives 200 miles in a year to meet with clients and attend industry conferences. She keeps a log of these trips and the gas expenses incurred. She can deduct the cost of gas for these 200 miles as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, you can use the actual expense method by totaling all gas expenses related to business use or use the standard mileage rate. For 2023, the standard mileage rate is 65.5 cents per mile. Multiply the business miles driven by this rate to determine the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records including a mileage log showing the date, destination, purpose of the trip, and miles driven. Save all gas receipts and any other vehicle-related expenses if you choose the actual expense method. Documentation should be maintained for at least three years.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses.

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsDelivery Services

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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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