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Can you write off is gas a write off?

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, such as driving to client meetings, job sites, or business-related errands. Personal use of a vehicle is not deductible. Business owners can choose between deducting actual expenses, which include gas, or using the standard mileage rate, which covers all vehicle-related expenses. For 2023, the standard mileage rate is 65.5 cents per mile. To deduct actual expenses, you must keep detailed records of all costs, including gas, maintenance, and repairs. It's crucial to maintain a log that separates business and personal use.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the standard mileage rate, no separate line for gas is needed.

Real World Example

A freelance photographer drives 200 miles in a month to various photo shoots and meetings. They can either deduct the actual gas expenses incurred or use the standard mileage rate, which would be 200 miles x $0.655 = $131.00 for that month.

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. For actual expenses, calculate the percentage of business use and apply it to the total gas expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing the date, miles driven, and purpose of each trip. Retain all gas receipts and any vehicle maintenance records. Use apps or spreadsheets to track mileage and expenses accurately.

IRS Reference

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