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How do I deduct is gas a business expense on my taxes?

TL;DR

Gas can be deducted as a business expense if it is used for business purposes.

Detailed Answer

Gas expenses are deductible when they are incurred for business-related travel. This includes driving to meet clients, attending business meetings, or traveling between different work sites. Personal travel or commuting from home to a regular place of business is not deductible. Taxpayers can choose to deduct actual expenses, including gas, or use the standard mileage rate, which covers gas and other vehicle-related expenses.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 9 for car and truck expenses

Real World Example

A freelance photographer uses their car to travel to various client locations for photo shoots. They keep a log of miles driven for each business trip and choose to deduct the actual gas expenses incurred during these trips.

Calculation Required

A calculation is required for this deduction.

If using actual expenses, calculate the total gas expenses for business use by keeping detailed records of gas purchases and business mileage. Alternatively, use the IRS standard mileage rate by multiplying the total business miles driven by the rate (e.g., 65.5 cents per mile for 2023).

Audit Risk & Documentation Tips

To minimize audit risk, maintain a detailed mileage log that includes dates, miles driven, and the business purpose of each trip. Keep receipts for all gas purchases. Consistent and accurate record-keeping is crucial to substantiate the deduction.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses; IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessReal Estate AgentsConsultantsSales 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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