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Can you write off can you write gas off on your taxes?

TL;DR

Gas expenses can be deductible if they are incurred for business purposes.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities. For instance, if you use your personal vehicle for business travel, you can deduct the cost of gas. However, commuting expenses from home to your regular place of business are not deductible. You can choose to deduct actual expenses, which include gas, or use the standard mileage rate set by the IRS.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, or Form 2106 for employees if applicable.

Real World Example

A freelance photographer drives to various locations for photo shoots. They track their mileage and gas expenses for these trips and deduct them as business expenses on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, you can either track actual expenses (including gas, maintenance, and repairs) or use the IRS standard mileage rate. For 2023, the standard mileage rate is 65.5 cents per mile.

Audit Risk & Documentation Tips

Maintain a detailed log of business miles driven, including dates, destinations, and purpose of trips. Keep receipts for gas purchases and any other vehicle-related expenses if claiming actual expenses. Consistent and accurate record-keeping reduces audit risk.

IRS Reference

IRS Publication 463 (Travel, Entertainment, 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