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

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. It's important to distinguish between personal and business use to ensure compliance with IRS rules.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. This includes driving to meet clients, traveling between job sites, or running business-related errands. Personal commuting from home to a regular place of work is not deductible. Taxpayers can choose between the actual expense method, which includes gas, or the standard mileage rate method, which factors in gas costs. For the actual expense method, you must keep detailed records of all vehicle expenses and the percentage of business use. The standard mileage rate for 2023 is 65.5 cents per mile. For example, if you drive 1,000 miles for business, you can deduct $655 using the standard rate. Special rules apply to certain professions, such as real estate agents or delivery drivers, who may have more complex travel patterns.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106 for employee business expenses, enter on Line 1.

Real World Example

A freelance graphic designer drives 2,000 miles in a year to meet clients and attend business events. By using the standard mileage rate, they can deduct $1,310 (2,000 miles x 65.5 cents). They must keep a log of each trip, including the date, destination, and purpose.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, multiply the total business miles driven by the IRS standard mileage rate (e.g., 2,000 miles x 65.5 cents = $1,310). If using 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, including dates, destinations, and business purposes. Retain all receipts for gas and vehicle expenses if using the actual expense method. Ensure personal and business use are clearly separated.

IRS Reference

IRS Pub 463 (Travel, Gift, and Car Expenses), IRS Pub 535 (Business Expenses), IRC §162

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery DriversSales Representatives

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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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