Checkmark iconCan I Write This Off?

Is can i write off my gas for work a business expense?

TL;DR

Gas expenses for work can be deductible if they are directly related to business activities, but commuting costs from home to a regular place of work are not deductible.

Detailed Answer

Gas expenses can be deducted if they are incurred for business purposes, such as traveling to meet clients, attending business meetings, or transporting goods. However, the IRS does not allow deductions for commuting expenses, which are the costs of traveling between your home and your regular place of business. To qualify, the vehicle must be used for business purposes, and you can either deduct actual expenses (including gas) or use the standard mileage rate. For 2023, the standard mileage rate is 65.5 cents per mile. If you choose to deduct actual expenses, you must keep detailed records of all costs, including gas, maintenance, and insurance, and calculate the business-use percentage of the vehicle.

Where to Put It on the Tax Form

Schedule C, Line 9 or Form 2106 for unreimbursed employee expenses.

Real World Example

A freelance graphic designer uses their car to meet clients and attend industry events. They drive 5,000 miles for business purposes in a year. Using the standard mileage rate, they can deduct $3,275 (5,000 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 the year. Alternatively, if using actual expenses, calculate the total costs of operating the vehicle and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed mileage log showing dates, destinations, and business purposes of trips. Retain receipts for gas and other vehicle expenses if deducting actual costs. Use apps or spreadsheets to maintain accurate records.

IRS Reference

IRS Pub 463

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsContractors

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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 15, 2025

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