Checkmark iconCan I Write This Off?

Is can i write off gas a business expense?

TL;DR

Gas can be a deductible business expense if it is used for business purposes, but it must be properly documented and separated from personal use.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities, such as driving to meet clients, traveling to job sites, or making deliveries. Personal use of a vehicle is not deductible. To claim a deduction, you can either use the actual expense method, which involves tracking all vehicle-related expenses including gas, or the standard mileage rate method, which simplifies the process by multiplying business miles driven by a standard rate set by the IRS. For 2023, this rate is 65.5 cents per mile. It's important to keep detailed records of business mileage and expenses, including dates, destinations, and purposes of trips.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the actual expense method, also include on Form 4562 for depreciation.

Real World Example

A freelance graphic designer drives 1,000 miles in a year to meet clients and attend networking events. Using the standard mileage rate, they can deduct $655 (1,000 miles x $0.655). They must keep a mileage log with dates, destinations, and business purposes.

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 for the year. 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 and keep receipts for all vehicle expenses. Use apps or spreadsheets to track mileage and ensure logs include dates, destinations, and business purposes. Retain records for at least three years.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales Representatives

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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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