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

TL;DR

Yes, you can deduct gas as a business expense if it is used for business purposes.

Detailed Answer

Gas expenses can be deducted when the vehicle is used for business purposes. This includes travel between job sites, client meetings, or other business-related travel. However, commuting from home to a regular place of business is not deductible. You can choose between deducting actual expenses, which include gas, or using the standard mileage rate, which covers all vehicle-related costs.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 9 for sole proprietors or as a business expense on Form 1120 or 1120S for corporations.

Real World Example

A freelance photographer uses their car to travel to various photo shoot locations. They track the miles driven for these business trips and either deduct the actual gas expenses or use the standard mileage rate for the deduction.

Calculation Required

A calculation is required for this deduction.

If using actual expenses, calculate the total cost of gas used for business trips. If using the standard mileage rate, multiply the business miles driven by the IRS standard mileage rate for the year.

Audit Risk & Documentation Tips

Keep detailed records of all business trips, including dates, destinations, and purpose of the trip. Maintain receipts for gas purchases and a mileage log. Ensure personal and business use of the vehicle is clearly separated.

IRS Reference

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

Relevant Industries

FreelancersSmall BusinessSales ProfessionalsConsultants

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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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