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Can I deduct how to write off gas on taxes?

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 distinguish between business and personal use accurately.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, attending business meetings, or transporting goods. If you use your vehicle for both personal and business purposes, you must calculate the percentage of business use. The IRS allows you to deduct actual expenses like gas, or you can use the standard mileage rate, which includes gas, maintenance, and depreciation. For example, if you drive 10,000 miles in a year and 6,000 of those miles are for business, you can deduct 60% of your gas expenses. It's crucial to maintain a mileage log to substantiate your business use. Gas expenses for commuting from home to your regular place of business are not deductible.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses, or Form 2106 for employee business expenses if applicable.

Real World Example

A freelance photographer drives 15,000 miles in a year, with 9,000 miles for business-related activities such as traveling to photo shoots and client meetings. They can deduct 60% of their gas expenses, assuming they choose to use actual expenses instead of the standard mileage rate.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, track total miles driven and business miles driven. Divide business miles by total miles to get the business use percentage. Multiply this percentage by 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 other vehicle-related expense records. Consider using a mileage tracking app to simplify record-keeping.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales RepresentativesDelivery 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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