Can I Write This Off?

How do I deduct can you deduct gas and mileage on my taxes?

TL;DR

Gas and mileage can be deducted as business expenses if you use your vehicle for business purposes, but you must choose between the standard mileage rate or actual expenses method.

Detailed Answer

To deduct vehicle expenses, you must use your vehicle for business purposes. You can choose between the standard mileage rate, which is a set rate per mile driven for business, or the actual expenses method, which involves calculating the actual costs of operating the vehicle (e.g., gas, maintenance, insurance) and multiplying by the percentage of business use. Personal commuting is not deductible. For example, if you drive 10,000 miles in a year and 6,000 of those are for business, you can deduct 60% of your actual expenses or use the standard mileage rate for those 6,000 miles. Note that once you choose a method for a vehicle, you must stick with it for the life of the vehicle unless you switch from the standard mileage rate to actual expenses in a later year.

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 graphic designer drives 5,000 miles for client meetings and project site visits in a year. Using the 2023 standard mileage rate of 65.5 cents per mile, they can deduct $3,275 (5,000 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 the year. For actual expenses, calculate the total vehicle expenses and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log with dates, destinations, and business purposes. Retain receipts for gas and maintenance if using the actual expenses method. Consider using apps or spreadsheets to track mileage and expenses accurately.

IRS Reference

IRS Pub 463

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 25, 2025

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