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Can you write off can i deduct gas from taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. However, personal use of a vehicle is not deductible, and proper documentation is crucial.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. If you use your vehicle for both personal and business purposes, you can only deduct the portion of gas expenses that applies to business use. You have two options for deducting vehicle expenses: the standard mileage rate or actual expenses. If you choose actual expenses, you can deduct the business portion of gas, along with other vehicle-related expenses like maintenance and insurance. For example, if you drove 10,000 miles in a year and 6,000 of those miles were for business, you can deduct 60% of your gas expenses. It's important to keep detailed records of your mileage and the purpose of each trip to substantiate your deduction.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses, or Form 2106 if you are an employee with unreimbursed expenses.

Real World Example

A freelance graphic designer uses their car to meet clients and attend networking events. Over the year, they spend $1,200 on gas. They determine that 70% of their car use is for business, allowing them to deduct $840 (70% of $1,200) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, divide the business miles driven by the total miles driven to get the business use percentage. Multiply this percentage by the total gas expenses.

Audit Risk & Documentation Tips

Moderate. Keep a detailed mileage log that includes the date, purpose, and miles driven for each business trip. Save all gas receipts and maintain a record of total miles driven during the year. Consider using a mileage tracking app to simplify record-keeping.

IRS Reference

IRS Publication 463

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery Drivers

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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 25, 2025

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