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Is can i deduct gas from taxes tax deductible?

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. For example, if you use your personal vehicle for business travel, you can deduct the cost of gas as a business expense. However, commuting from home to your regular place of work is not deductible. You can choose to deduct actual expenses or use the standard mileage rate, which includes gas costs.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 for sole proprietors or as an unreimbursed employee expense on Schedule A if you qualify.

Real World Example

A freelance photographer uses their personal car to travel to various photo shoot locations. They track the miles driven for business purposes and deduct the corresponding gas expenses using the actual expense method or the standard mileage rate.

Calculation Required

A calculation is required for this deduction.

If using the actual expense method, calculate the percentage of business use of the vehicle and apply it to total gas expenses. Alternatively, use the IRS standard mileage rate, which includes gas costs, multiplied by the business miles driven.

Audit Risk & Documentation Tips

Maintain a detailed mileage log and keep receipts for gas purchases. Document the business purpose of each trip to substantiate the deduction in case of an audit.

IRS Reference

IRS Publication 463 (Travel, Entertainment, 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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