Checkmark iconCan I Write This Off?

Can I deduct writing off gas on taxes?

TL;DR

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

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, attending business meetings, or traveling between different work sites. Personal use of a vehicle, such as commuting to and from a regular place of work, is not deductible. To claim this deduction, you can use either the actual expense method, where you deduct the actual cost of gas and other vehicle expenses, or the standard mileage rate, which includes gas costs.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, or Schedule E for rental activities, under 'Car and truck expenses'.

Real World Example

A freelance graphic designer drives to meet clients and attend workshops. They track their mileage and gas expenses, choosing to deduct these costs using the actual expense method on their Schedule C.

Calculation Required

A calculation is required for this deduction.

If using the actual expense method, calculate the percentage of business use of the vehicle and apply it to total gas expenses. For the standard mileage rate, multiply the business miles driven by the IRS standard mileage rate.

Audit Risk & Documentation Tips

Maintain a detailed mileage log and keep receipts for gas purchases. Document the purpose of each trip to substantiate the business use. This documentation will help in case of an audit.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessReal Estate AgentsSales 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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