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Can you write off can you write off fuel on taxes?

TL;DR

Fuel expenses can be deductible if they are directly related to business use. However, personal fuel expenses are not deductible, and proper documentation is essential.

Detailed Answer

Fuel expenses are deductible when they are incurred for business purposes. For example, if you use your vehicle to meet clients, deliver goods, or travel between job sites, you can deduct the cost of fuel. However, commuting from home to your regular place of business is considered personal use and is not deductible. You can choose to deduct actual expenses, including fuel, or use the standard mileage rate, which covers fuel and other vehicle expenses. It's crucial to keep detailed records of your business mileage and fuel receipts to substantiate your deduction.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses if using actual expenses. If using the standard mileage rate, also report on Schedule C, Line 9.

Real World Example

A freelance photographer who drives 5,000 miles a year for photo shoots can deduct fuel costs if they choose the actual expense method. If they spend $1,000 on fuel for these business trips, they can deduct this amount, provided they have kept all fuel receipts and a log of business miles.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using actual expenses, track all fuel receipts and business miles. If using the standard mileage rate, multiply the business miles driven by the IRS standard mileage rate for the year.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records, including a mileage log showing dates, destinations, and purpose of trips, and all fuel receipts. Use a vehicle logbook or app to track business vs. personal use.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses)

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesTradespeople

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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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