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How do I deduct how to write off gas on taxes on my taxes?

TL;DR

Gas expenses can be deductible if they are incurred for business purposes.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities. If you use your vehicle for business, you can deduct either the actual expenses (including gas) or the standard mileage rate. Personal use of your vehicle, such as commuting, is not deductible. For example, if you are a freelancer who drives to meet clients, the gas used for those trips can be deducted. However, driving from your home to your regular place of work is considered commuting and is not deductible.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, Part II, Line 9 (Car and truck expenses)

Real World Example

A freelance graphic designer uses their personal car to travel to client meetings and industry events. They track the miles driven for these business purposes and choose to deduct the actual gas expenses incurred during these trips.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, you can either track and deduct actual expenses or use the standard mileage rate. For actual expenses, keep records of all costs related to the vehicle, including gas. For the standard mileage rate, multiply the total business miles driven by the IRS standard mileage rate.

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed records of all business trips, including dates, mileage, and purpose. Maintain receipts for gas purchases and consider using a mileage tracking app to ensure accuracy.

IRS Reference

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

Relevant Industries

FreelancersSmall BusinessReal Estate AgentsSales Professionals

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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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