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How do I deduct how to write off gas as a business expense on my taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients or traveling between different work sites. Personal use of the vehicle does not qualify for a deduction. To claim this deduction, taxpayers can use either the actual expense method, which includes gas, or the standard mileage rate, which simplifies the deduction process by using a set rate per mile driven for business purposes.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, or Form 1120 for corporations, under 'Car and truck expenses'.

Real World Example

A freelance photographer drives 100 miles to a photo shoot location. They can deduct the cost of gas used for this trip if they choose the actual expense method, or they can use the standard mileage rate to calculate their deduction.

Calculation Required

A calculation is required for this deduction.

If using the actual expense method, calculate the total gas expenses for the year and multiply by the percentage of business use of the vehicle. If using the standard mileage rate, multiply the total business miles driven by the IRS standard mileage rate for the year.

Audit Risk & Documentation Tips

Maintain a detailed log of business miles driven, including dates, destinations, and purposes of trips. Keep all gas receipts if using the actual expense method. Documentation helps substantiate the deduction in case of an audit.

IRS Reference

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

Relevant Industries

FreelancersSmall BusinessSales ProfessionalsReal Estate Agents

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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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