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How do I deduct can i deduct gas from taxes on my taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. Personal use of gas is not deductible, and proper documentation is crucial to substantiate the business use.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. This includes driving to meet clients, traveling between different work sites, or purchasing supplies. However, commuting from home to your regular place of business is not deductible. You can choose to deduct actual expenses, including gas, or use the standard mileage rate, which covers all vehicle-related expenses. For the 2023 tax year, the standard mileage rate is 65.5 cents per mile. If you opt for actual expenses, you must keep detailed records of all costs, including gas, maintenance, and repairs, and calculate the business-use percentage of your vehicle.

Where to Put It on the Tax Form

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

Real World Example

A freelance photographer drives 1,000 miles in a year for client shoots and meetings. They keep a log of each trip, noting the date, purpose, and miles driven. They opt to use the standard mileage rate, deducting $655 (1,000 miles x 65.5 cents per mile) on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using actual expenses, total all vehicle-related expenses (e.g., gas, maintenance) and multiply by the business-use percentage. Alternatively, use the standard mileage rate by multiplying total business miles by the IRS rate.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log, receipts for gas and other expenses, and records of the business purpose for each trip. Use apps or spreadsheets to maintain accurate records and ensure they are contemporaneous.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales RepresentativesDelivery 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 25, 2025

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