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How do I deduct can i write off gas and mileage on my taxes?

TL;DR

Gas and mileage can generally be deducted as business expenses if they are incurred for business purposes. However, you cannot deduct both gas and mileage; you must choose one method for calculating your vehicle expenses.

Detailed Answer

You can deduct vehicle expenses using either the standard mileage rate or actual expenses method. The standard mileage rate, set annually by the IRS, covers all vehicle-related costs, including gas, maintenance, and depreciation. Alternatively, the actual expenses method allows you to deduct the actual costs of operating the vehicle, such as gas, oil, repairs, insurance, and depreciation, but only the portion that applies to business use. To use either method, you must keep detailed records of your business miles driven. Note that commuting miles (driving from home to your regular place of work) are not deductible. For example, if you drive to meet clients or attend business meetings, those miles are deductible.

Where to Put It on the Tax Form

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

Real World Example

A freelance graphic designer drives 3,000 miles in a year for client meetings and project work. Using the 2023 standard mileage rate of 65.5 cents per mile, they can deduct $1,965 (3,000 miles x $0.655) on their Schedule C.

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

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing dates, miles driven, and business purpose. Save all receipts if using the actual expenses method. Consider using a mileage tracking app for accuracy and convenience.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales 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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