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Can you write off can i write off gas on my taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. Personal use of gas is not deductible, and proper records must be maintained to substantiate the business use.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. This includes driving to meet clients, traveling between job sites, or any other business-related travel. Personal commuting expenses are not deductible. To claim gas expenses, you can either use the actual expense method, which involves tracking all vehicle-related expenses including gas, or the standard mileage rate, which simplifies the process by allowing a deduction based on miles driven for business purposes. The IRS requires that you keep detailed records of your business mileage and expenses, such as receipts and a mileage log. For example, if you drive your car 10,000 miles in a year and 6,000 of those miles are for business, you can deduct 60% of your gas expenses if using the actual expense method.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses, or Form 2106 for employees claiming unreimbursed expenses.

Real World Example

A freelance graphic designer drives to meet clients and attend networking events. In a year, she drives 5,000 miles for business out of a total of 12,000 miles driven. She keeps all her gas receipts, totaling $1,200 for the year. Using the actual expense method, she can deduct $500 (5,000/12,000 x $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 find the business-use percentage, then apply this percentage to the total gas expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log showing dates, miles driven, and purpose of each trip. Keep all gas receipts and any other documentation that supports the business use of the vehicle, such as appointment confirmations or contracts.

IRS Reference

IRS Pub 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery Services

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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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