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Is can i write off gas for work a valid tax write-off?

TL;DR

Gas expenses for work can be deductible if they are directly related to business use of a vehicle, but personal commuting costs are not deductible.

Detailed Answer

Gas expenses are deductible when they are directly related to the business use of a vehicle. This includes travel between job sites, client meetings, or other business-related trips. However, commuting from home to a regular place of business is not deductible. Business owners can choose between deducting actual vehicle expenses, including gas, or using the standard mileage rate, which covers all vehicle-related costs. It's important to maintain detailed records of business versus personal use to substantiate the deduction.

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 2.

Real World Example

A freelance graphic designer who drives to meet clients and attend industry events can deduct gas expenses for these trips. If they drive 1,000 miles for business in a year and use the standard mileage rate (e.g., 65.5 cents per mile for 2023), they can deduct $655.

Calculation Required

A calculation is required for this deduction.

Calculate the deduction by multiplying the total business miles driven by the IRS standard mileage rate, or by calculating the actual expenses (including gas) and applying the business-use percentage.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log, including dates, destinations, and purpose of each trip. Retain receipts for gas purchases and maintain records of total miles driven for both business and personal use to substantiate the business-use percentage.

IRS Reference

IRS Pub 463, Travel, Gift, and Car Expenses; IRC §162.

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