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

TL;DR

Gas expenses can be deductible if they are directly related to business activities, but personal use is not deductible. It's important to distinguish between business and personal use to ensure compliance with IRS rules.

Detailed Answer

Gas expenses are deductible when they are incurred as part of operating a vehicle for business purposes. This includes traveling to client meetings, job sites, or other business-related destinations. However, commuting from home to your regular place of business is not deductible. You can choose to deduct actual expenses, which include gas, or use the standard mileage rate, which covers gas and other vehicle expenses. For 2023, the standard mileage rate is 65.5 cents per mile. It's crucial to maintain a detailed log of business miles driven and keep receipts for gas purchases if you choose the actual expense method.

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 200 miles in a year to meet with clients and attend industry events. Using the standard mileage rate, they can deduct $131 (200 miles x $0.655) on their Schedule C. They keep a logbook detailing each trip's date, purpose, and miles driven.

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 percentage of business use and apply it to total vehicle expenses, including gas.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log with dates, destinations, and business purposes. Save all gas receipts if using the actual expense method. Consider using apps to track mileage automatically to ensure accuracy and compliance.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery Drivers

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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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