Can I Write This Off?

Is can i write off gas and mileage a business expense?

TL;DR

Gas and mileage can be deductible business expenses if they are directly related to business activities. However, personal use of a vehicle is not deductible, and accurate records must be maintained.

Detailed Answer

Gas and mileage expenses are deductible when they are incurred for business purposes, such as traveling to meet clients, attending business meetings, or transporting goods. The IRS allows two methods for calculating vehicle expenses: the standard mileage rate or actual expenses. The standard mileage rate is often simpler, allowing a deduction based on the number of business miles driven multiplied by the IRS mileage rate (e.g., 65.5 cents per mile for 2023). Alternatively, actual expenses include costs like gas, oil, repairs, insurance, and depreciation, but must be prorated for business use. Personal commuting is not deductible. Accurate mileage logs and receipts are essential for substantiating the deduction.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses.

Real World Example

A freelance graphic designer drives 1,000 miles in a year for client meetings and project site visits. Using the 2023 standard mileage rate of 65.5 cents per mile, they can deduct $655 (1,000 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. For actual expenses, calculate the total vehicle expenses and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log, including dates, destinations, and purpose of trips. Keep receipts for gas and other expenses if using the actual expense method. Consistent and thorough documentation is crucial to defend this deduction.

IRS Reference

IRS Pub 463

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 25, 2025

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