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Can you write off can you write off gas for work?

TL;DR

Gas expenses for work can be deductible if they are directly related to business activities, but personal commuting costs are not deductible. It's important to distinguish between business and personal use.

Detailed Answer

Gas expenses can be deducted when they are incurred for business purposes, such as traveling to meet clients, making deliveries, or attending business-related events. However, commuting from home to your regular place of work is considered a personal expense and is not deductible. For self-employed individuals, the deduction can be taken using the actual expenses method, which includes gas, or the standard mileage rate method. The standard mileage rate for 2023 is 65.5 cents per mile. It's crucial to maintain a log of business miles driven and keep receipts if using the actual expenses method.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using actual expenses, detailed records must be kept.

Real World Example

A freelance graphic designer drives 150 miles in a month to meet with clients and attend networking events. Using the standard mileage rate, they can deduct 150 miles x $0.655 = $98.25 as a business expense.

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 (e.g., 150 miles x $0.655). For actual expenses, calculate the percentage of business use and apply it to total vehicle expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing dates, miles driven, and business purpose. Retain receipts for gas and maintenance if using the actual expenses method. Consider using apps or software to track mileage and expenses accurately.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses; IRS Publication 535, Business Expenses.

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales 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 25, 2025

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