Can I Write This Off?

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

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. However, personal use of the vehicle is not deductible, and accurate records must be maintained to substantiate the business use portion.

Detailed Answer

Gas expenses are deductible as part of the actual vehicle expenses method when the vehicle is used for business purposes. This includes costs like gas, oil, repairs, insurance, and depreciation. Alternatively, taxpayers can use the standard mileage rate, which includes gas costs. Personal use of the vehicle is not deductible, and taxpayers must differentiate between business and personal use. For example, a freelance photographer driving to a client shoot can deduct the gas used for that trip. However, driving to a personal event is not deductible. Taxpayers must keep detailed records of mileage and expenses to substantiate their claims.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, report on Line 2.

Real World Example

A freelance graphic designer uses their car to meet clients and attend networking events. They track their mileage and gas expenses for these business trips. At tax time, they choose to deduct actual expenses, including $1,200 spent on gas, by reporting it on Schedule C, Line 9.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, determine the percentage of total vehicle use that is for business. Multiply the total gas expenses by this percentage. Alternatively, use the IRS standard mileage rate to calculate the deduction based on business miles driven.

Audit Risk & Documentation Tips

Audit risk is moderate due to the potential for mixing personal and business expenses. Taxpayers should maintain a detailed mileage log noting the date, destination, purpose, and miles driven for each business trip. Keep all gas receipts and any maintenance records to substantiate the actual expenses claimed.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses.

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales 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 15, 2025

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