Checkmark iconCan I Write This Off?

Is can i write gas off on my taxes tax deductible?

TL;DR

Gas expenses can be tax deductible if they are directly related to business use of a vehicle. Personal use of gas is not deductible.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. This typically applies to self-employed individuals, freelancers, and small business owners who use their vehicle for business activities such as meeting clients, traveling to job sites, or delivering goods. You cannot deduct gas expenses for personal use. To claim this deduction, you must track and document the business use of your vehicle. You can choose between deducting actual expenses, including gas, or using the standard mileage rate, which for 2023 is 65.5 cents per mile. The choice between these methods should be based on which provides a larger deduction. Note that commuting from home to your regular place of business is considered personal use and is not deductible.

Where to Put It on the Tax Form

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

Real World Example

A freelance photographer drives 200 miles in a year to various client locations. Choosing the standard mileage rate, they deduct $131 (200 miles x $0.655) instead of tracking actual gas expenses.

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., 200 miles x $0.655). If using actual expenses, track and sum all vehicle-related expenses, then multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log showing dates, miles driven, and business purpose. Keep receipts for all vehicle expenses if using the actual expense method. Consider using apps or tools to track mileage automatically.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales 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 25, 2025

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