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Can I deduct is gas tax deductible for business?

TL;DR

Gas expenses for business use are deductible, but not the gas tax specifically.

Detailed Answer

When using a vehicle for business purposes, you can deduct the cost of gas as part of your vehicle expenses. However, the gas tax itself is not separately deductible. You can choose between deducting actual vehicle expenses, which include gas, or using the standard mileage rate, which encompasses all vehicle-related costs, including gas.

Where to Put It on the Tax Form

Schedule C, Part II, Line 9 for actual expenses or Line 44 for standard mileage rate

Real World Example

A freelance photographer uses their car to travel to various photo shoot locations. They track their mileage and gas expenses throughout the year. At tax time, they choose to deduct actual vehicle expenses, including gas, on their Schedule C.

Calculation Required

A calculation is required for this deduction.

If using actual expenses, calculate the total cost of gas used for business purposes. If using the standard mileage rate, multiply the total business miles driven by the IRS standard mileage rate for the year.

Audit Risk & Documentation Tips

Maintain a detailed mileage log and keep all receipts for gas purchases. Ensure that you can distinguish between personal and business use of the vehicle. Documentation should clearly support the business purpose of each trip.

IRS Reference

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

Relevant Industries

Small BusinessFreelancersConsultantsSales 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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