Can I Write This Off?

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

TL;DR

Gas expenses can be deductible as a business expense if they are directly related to the operation of a business vehicle for business purposes. Personal use of the vehicle is not deductible.

Detailed Answer

Gas expenses are deductible when the vehicle is used for business purposes, such as meeting clients, traveling to job sites, or purchasing supplies. The IRS allows you to deduct actual vehicle expenses, including gas, or use the standard mileage rate, which encompasses gas and other vehicle-related costs. Personal commuting and non-business travel are not deductible. It's crucial to differentiate between personal and business use, and maintain accurate records of mileage and expenses. For example, a real estate agent driving to show properties can deduct the gas used for those trips.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the standard mileage rate, detailed records should be kept but not necessarily submitted.

Real World Example

A freelance graphic designer drives 200 miles in a month to meet clients and attend networking events. They can deduct the gas expenses for these trips, either by calculating the actual cost of gas or using the IRS standard mileage rate, which for 2023 is 65.5 cents per mile.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction using actual expenses, total all gas receipts for business trips. Alternatively, multiply the total business miles driven by the IRS standard mileage rate (e.g., 200 miles x $0.655 = $131).

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, including dates, destinations, purpose of trips, and odometer readings. Save all gas receipts and maintain a calendar or diary of business activities to substantiate the business purpose of trips.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses) and IRS Publication 535 (Business Expenses).

Relevant Industries

FreelancersReal Estate AgentsConsultantsContractors

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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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