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How do I deduct writing off gas on taxes on my taxes?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. However, you cannot deduct gas if you choose to use the standard mileage rate method for vehicle expenses.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, attending business meetings, or delivering goods. You have two options for deducting vehicle expenses: the actual expense method or the standard mileage rate. If you use the actual expense method, you can deduct the cost of gas, oil, repairs, insurance, and other vehicle-related expenses proportionate to the business use of the vehicle. If you opt for the standard mileage rate, you cannot separately deduct gas expenses, as they are included in the rate. It's important to maintain a log of business miles driven and keep receipts for gas purchases if using the actual expense method. Personal commuting and non-business-related travel are not deductible.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses if using actual expenses; Line 44 for other expenses if using standard mileage.

Real World Example

A freelance photographer drives 5,000 miles in a year for business purposes and spends $1,000 on gas. If they choose the actual expense method, they can deduct the $1,000 gas expense along with other vehicle-related costs. If they use the standard mileage rate, they cannot deduct the gas separately.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion using the actual expense method, determine the percentage of business use by dividing business miles by total miles driven. Multiply this percentage by total gas expenses. For example, if 60% of the miles are for business, then 60% of the gas expenses are deductible.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records including a mileage log showing dates, destinations, and purpose of trips, as well as gas receipts. Use a dedicated logbook or a digital app to track mileage and expenses accurately.

IRS Reference

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