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How do I deduct is gas deductible for self employed on my taxes?

TL;DR

Gas expenses are generally deductible for self-employed individuals if the vehicle is used for business purposes. Personal use of the vehicle is not deductible.

Detailed Answer

Gas expenses can be deducted if they are directly related to the operation of a vehicle used for business purposes. Self-employed individuals can choose between the standard mileage rate or actual expenses method to calculate their deduction. The standard mileage rate for 2023 is 65.5 cents per mile. If using the actual expenses method, you can deduct the cost of gas, oil, repairs, insurance, and depreciation, but only the portion that applies to business use. Personal commuting or non-business travel is not deductible. For example, if you drive your car 10,000 miles in a year and 6,000 of those miles are for business, you can deduct 60% of your actual gas expenses.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses.

Real World Example

A freelance photographer drives 8,000 miles in a year, with 5,000 miles being for business purposes. They choose the actual expenses method and spend $2,000 on gas. They can deduct $1,250 (5,000/8,000 miles = 62.5% business use, so $2,000 x 62.5% = $1,250) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the percentage of business use by dividing business miles by total miles driven. Apply this percentage to your total gas expenses to find the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing dates, miles driven, and purpose of each trip. Retain all gas receipts and any other vehicle-related expenses. Use a mileage tracking app or a physical logbook to ensure accuracy and completeness.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery Services

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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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