Can I Write This Off?

Can I write off my Gas for work?

TL;DR

Yes, you can write off gas for work under certain conditions, but not for commuting.

Detailed Answer

If you use your vehicle for business purposes, you can deduct the cost of gas as a business expense. This includes driving to meet clients, going to different work locations, or running business errands. However, you cannot deduct the cost of commuting from your home to your regular place of work. There are two methods to calculate this deduction: the standard mileage rate (which includes gas) and the actual expense method (where you track all car-related expenses including gas). The standard mileage rate for 2021 is 56 cents per mile. Remember to keep detailed records of your business-related driving.

Where to Put It on the Tax Form

Schedule C, Line 9

Real World Example

A freelance photographer who uses their car to travel to different photo shoots can deduct the gas expenses associated with those trips.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of your gas expenses, you need to determine the percentage of your car's use that is for business. For example, if you drove 10,000 miles in a year and 3,000 of those miles were for business, you can deduct 30% of your gas expenses.

Audit Risk & Documentation Tips

Keep detailed records of your business-related trips, including dates, mileage, and the purpose of each trip. Receipts for gas purchases should also be kept. The IRS may request these documents if your return is audited.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessReal EstateSalesConsultants