Can I Write This Off?

Is can i write off gas on my taxes a business expense?

TL;DR

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

Detailed Answer

Gas expenses are deductible when they are incurred for a vehicle used in the course of conducting business. To qualify, the vehicle must be used for business activities such as traveling to meet clients, transporting goods, or attending business meetings. Personal commuting expenses are not deductible. Taxpayers can choose to deduct actual expenses, including gas, or use the standard mileage rate, which covers gas and other vehicle-related costs. It's essential to maintain detailed records of business versus personal use. For instance, if a vehicle is used 70% for business, only 70% of the gas expenses can be deducted.

Where to Put It on the Tax Form

Schedule C, Line 9

Real World Example

A freelance graphic designer uses their car to visit clients and attend industry events. They drive 10,000 miles in a year, with 7,000 miles for business. They can deduct 70% of their gas expenses as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion, first determine the total business miles driven. Divide this by the total miles driven to find the business-use percentage. Multiply the total gas expenses by this percentage to find the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing dates, destinations, and purpose of each trip. Retain all gas receipts and any maintenance records. Consider using a mileage tracking app for accuracy.

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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