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Is can you deduct gas and mileage a valid tax write-off?

TL;DR

Gas and mileage can be deductible if they are directly related to business use of a vehicle. However, personal use is not deductible, and there are specific methods to calculate the deduction.

Detailed Answer

To deduct gas and mileage, the vehicle must be used for business purposes. There are two methods to claim this deduction: the standard mileage rate and the actual expenses method. The standard mileage rate is simpler and involves multiplying the business miles driven by the IRS mileage rate (e.g., 65.5 cents per mile for 2023). The actual expenses method requires calculating the actual costs of operating the vehicle, including gas, and then multiplying by the percentage of business use. Personal commuting is not deductible. For example, if you drive 10,000 miles in a year and 6,000 of those are for business, you can deduct 60% of your actual expenses or use the standard mileage rate for those 6,000 miles.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106, it would be on Line 1.

Real World Example

A freelance graphic designer drives 5,000 miles for client meetings and project work in a year. Using the 2023 standard mileage rate of 65.5 cents per mile, 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 by the IRS mileage rate. For actual expenses, calculate the total vehicle expenses and multiply by the business use percentage.

Audit Risk & Documentation Tips

The audit risk is moderate. Keep a detailed mileage log showing the date, destination, purpose, and miles driven for each business trip. Retain receipts for all vehicle expenses if using the actual expenses method. Consistent and accurate record-keeping is crucial to substantiate the deduction.

IRS Reference

IRS Pub 463, IRS Pub 535, and IRC §162

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales RepresentativesContractors

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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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