Checkmark iconCan I Write This Off?

Is can i use gas as a tax write off a business expense?

TL;DR

Gas expenses can be deductible as a business expense if the vehicle is used for business purposes. Personal use of the vehicle does not qualify for a deduction.

Detailed Answer

Gas expenses are deductible when the vehicle is used for business purposes. This includes travel between job sites, client meetings, or business errands. However, commuting from home to a regular place of work is not deductible. The deduction can be claimed using the actual expense method, where you track all vehicle-related expenses, or the standard mileage rate, which includes gas costs. For 2023, the standard mileage rate is 65.5 cents per mile. It's crucial to maintain a log of business miles driven and keep receipts if using the actual expense method.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106 for employee business expenses, report on Line 1.

Real World Example

A freelance graphic designer drives 150 miles in a month to meet clients and purchase supplies. Using the standard mileage rate, they can deduct $98.25 (150 miles x $0.655) on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using the standard mileage rate, multiply the total business miles driven by the IRS mileage rate (e.g., 150 miles x $0.655). For the actual expense method, calculate the percentage of business use and apply it to total vehicle expenses, including gas.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log showing dates, miles driven, and purpose of each trip. Keep receipts for gas purchases. Use apps or spreadsheets to track mileage and expenses accurately.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), IRS Publication 334 (Tax Guide for Small Business).

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsContractors

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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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