Can I Write This Off?

How do I deduct can you deduct gas as a business expense on my taxes?

TL;DR

Gas expenses can generally be deducted as a business expense if they are directly related to business use of a vehicle. It's important to differentiate between personal and business use to avoid disallowance of the deduction.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, attending business meetings, or transporting goods. Personal commuting expenses are not deductible. You can choose to deduct actual expenses, including gas, or use the standard mileage rate, which covers gas and other vehicle-related costs. The choice between these methods should be consistent throughout the tax year. 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 gas expenses if using the actual expense method. Alternatively, you can use the standard mileage rate, which is updated annually by the IRS.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106 for employee business expenses, it would be reported there.

Real World Example

A freelance graphic designer drives to client meetings and industry events. Over the year, they drive 5,000 miles for business out of a total of 12,000 miles. They choose to use the standard mileage rate, which is $0.56 per mile for 2021, resulting in a deduction of $2,800 (5,000 miles x $0.56).

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the actual expense method, determine the percentage of business use by dividing business miles by total miles driven. Apply this percentage to your total gas expenses. Alternatively, multiply business miles by the standard mileage rate.

Audit Risk & Documentation Tips

Moderate. Keep a detailed log of business miles driven, including dates, destinations, and purpose of each trip. Retain all gas receipts and maintenance records if using the actual expense method. Consistency in record-keeping is crucial to substantiate the deduction.

IRS Reference

IRS Pub 463

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales 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 18, 2025

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