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Can you write off is gas tax deductible for business?

TL;DR

Gas expenses for business use are deductible as part of vehicle expenses.

Detailed Answer

Gas expenses can be deducted if they are incurred for business purposes. This deduction can be claimed using either the actual expense method, where you track and deduct the actual costs of gas along with other vehicle expenses, or the standard mileage rate method, which includes gas as part of the per-mile rate. Personal use of the vehicle is not deductible, and you must keep detailed records to substantiate the business use.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 for car and truck expenses

Real World Example

A freelance photographer uses their car to travel to various photoshoot locations. They track the miles driven for business purposes and choose to deduct the actual gas expenses along with other vehicle costs.

Calculation Required

A calculation is required for this deduction.

If using the actual expense method, calculate the percentage of business use of the vehicle and apply it to the total gas expenses. Alternatively, use the standard mileage rate, which includes gas, by multiplying the business miles driven by the IRS mileage rate.

Audit Risk & Documentation Tips

To minimize audit risk, maintain a detailed mileage log and keep receipts for all gas purchases. Clearly distinguish between personal and business use of the vehicle.

IRS Reference

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

Relevant Industries

Small BusinessFreelancersSales ProfessionalsDelivery Services

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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