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Can you write off can i write off gas and mileage?

TL;DR

Yes, you can write off gas and mileage, but you must choose between the standard mileage rate or actual expenses method, with specific rules for each option.

Detailed Answer

Gas and mileage can be deducted if they are related to business use of a vehicle. You can choose between the standard mileage rate, which is a flat rate per mile driven for business purposes, or the actual expenses method, which involves calculating the actual costs of operating the vehicle, including gas, maintenance, insurance, and depreciation. The standard mileage rate is simpler and requires less record-keeping, while the actual expenses method may yield a larger deduction if your vehicle costs are high. Personal commuting is not deductible. For the 2023 tax year, the standard mileage rate is 65.5 cents per mile. You must keep detailed records of your business miles and expenses, and once you choose a method for a vehicle, you must stick with it for the life of the vehicle if you use the standard mileage rate in the first year.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, it would be Line 1 for unreimbursed employee expenses.

Real World Example

A freelance graphic designer drives 3,000 miles in 2023 for client meetings and project work. Using the standard mileage rate, they can deduct $1,965 (3,000 miles x $0.655 per mile).

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the standard mileage rate, multiply the total business miles driven by the IRS mileage rate for the year. For actual expenses, sum all vehicle-related costs and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate. Keep a detailed mileage log, including dates, destinations, and purpose of each trip. Retain receipts for gas and maintenance if using the actual expenses method. Consistent and thorough documentation is key to defending this deduction in an audit.

IRS Reference

IRS Pub 463

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsContractors

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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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