Checkmark iconCan I Write This Off?

Can I deduct how to write off gas as a business expense?

TL;DR

Gas expenses can be deducted as a business expense if they are directly related to business use of a vehicle.

Detailed Answer

Gas expenses are deductible when they are incurred for the business use of a vehicle. This includes travel between business locations, client meetings, and other business-related travel. Personal use of the vehicle is not deductible. Taxpayers can choose to deduct actual expenses, including gas, or use the standard mileage rate, which covers gas and other vehicle-related expenses.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 for sole proprietors, or on the appropriate business tax form for other entities.

Real World Example

A freelance photographer drives to various locations for photo shoots. The gas used for these trips can be deducted as a business expense.

Calculation Required

A calculation is required for this deduction.

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

Audit Risk & Documentation Tips

Maintain a detailed mileage log, including dates, destinations, and purpose of each trip. Keep receipts for all gas purchases. This documentation will support your deduction in case of an audit.

IRS Reference

IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessSales ProfessionalsReal Estate Agents

Popular Related Pages

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

Back to Search