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Can you write off how to write off gas on taxes?

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 claim this deduction correctly.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. If you use your vehicle for both personal and business purposes, you can only deduct the portion of gas expenses that relate to business use. For instance, if you drive your car 60% of the time for business, you can deduct 60% of your gas expenses. The IRS allows you to choose between the actual expense method, where you track all vehicle-related expenses including gas, or the standard mileage rate, which includes gas in its calculation. It's crucial to maintain a mileage log to substantiate the business use percentage. Gas expenses are not deductible for commuting between your home and regular place of work, as this is considered personal use.

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, it would be included in the total on Line 1.

Real World Example

A freelance graphic designer drives 10,000 miles in a year, with 6,000 miles being for business purposes. They spend $1,500 on gas for the year. They can deduct 60% of their gas expenses, equating to $900, on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, determine the percentage of total miles driven for business purposes. Multiply this percentage by the total gas expenses for the year. Example: (Business miles / Total miles) x Total gas expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log showing dates, destinations, and business purposes of trips. Keep all gas receipts and any other vehicle-related expense records. Consider using a mileage tracking app to ensure accuracy and compliance.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales 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 15, 2025

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