Can I Write This Off?

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

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. Personal use of gas is not deductible, and proper documentation is essential to substantiate the deduction.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, traveling between job sites, or making deliveries. If a vehicle is used for both personal and business purposes, only the business portion of the gas expenses is deductible. To determine the deductible amount, you can use the actual expense method, which involves tracking all vehicle-related expenses, including gas, or the standard mileage rate, which simplifies the process by multiplying business miles driven by the IRS mileage rate. The actual expense method requires detailed records of all expenses and the percentage of business use, while the standard mileage rate requires a log of business miles driven. It's important to note that commuting from home to a regular place of business is considered personal use and not deductible.

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 on Line 1.

Real World Example

A freelance graphic designer drives 3,000 miles in a year for client meetings and project site visits. They choose to use the standard mileage rate method, which for 2023 is $0.655 per mile. Therefore, 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 the year. For the actual expense method, calculate the total vehicle expenses and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Audit risk is moderate. To defend this deduction, maintain a detailed mileage log showing dates, destinations, business purpose, and miles driven. Keep all receipts for gas purchases and any other vehicle-related expenses if using the actual expense method. Regularly update records to ensure accuracy and compliance.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), IRC §162

Relevant Industries

FreelancersReal Estate AgentsConsultantsContractorsSales 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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