Checkmark iconCan I Write This Off?

Is can i write off gas tax deductible?

TL;DR

Gas expenses can be deductible if they are directly related to business use of a vehicle. However, personal use of a vehicle is not deductible, and proper documentation is essential.

Detailed Answer

Gas expenses are deductible when they are incurred as part of the business use of a vehicle. This can apply to small business owners, freelancers, and independent contractors who use their personal vehicle for business purposes. The IRS allows you to deduct actual vehicle expenses, including gas, or use the standard mileage rate, which for 2023 is 65.5 cents per mile. To deduct actual expenses, you must keep detailed records of all costs and the proportion of business versus personal use. For instance, if you drive 10,000 miles in a year and 6,000 of those are for business, you can deduct 60% of your total gas expenses. Note that commuting from home to your regular place of business is considered personal use and not deductible.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses, or Form 2106 for employee business expenses if applicable.

Real World Example

A freelance graphic designer uses their car to visit clients and attend meetings. They drove 5,000 miles for business purposes out of a total of 12,000 miles driven during the year. They spent $2,000 on gas. They can deduct $833.33 (5,000/12,000 * $2,000) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, determine the percentage of total miles driven for business purposes and apply that percentage to the total gas expenses. For example, if 60% of your driving is for business, you can deduct 60% of your gas expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing dates, destinations, and business purposes of trips. Retain all gas receipts and maintain records of total miles driven and business miles driven. Consider using a mileage tracking app for accuracy.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsDelivery Services

Popular Related Pages

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

Back to Search