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Is can you write off gas for work a business expense?

TL;DR

Gas expenses can be deductible as a business expense if they are directly related to business activities, but personal commuting costs are not deductible.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as driving to meet clients, travel between job sites, or other business-related travel. However, commuting from home to your regular place of business is not deductible. For example, a real estate agent driving to show homes or a consultant traveling to a client meeting can deduct gas expenses. You can choose to deduct actual expenses, including gas, or use the standard mileage rate, which covers gas and other vehicle-related costs. It's important to maintain accurate records of business miles driven and the purpose of each trip.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using actual expenses, detailed records should be maintained.

Real World Example

A freelance photographer drives 100 miles to a photo shoot for a client. They can deduct the cost of gas for this trip as a business expense. If they spent $30 on gas for this trip, they can include this in their deductible vehicle expenses.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, you can either use the actual expenses method, where you total all vehicle expenses and multiply by the business-use percentage, or use the standard mileage rate, which for 2023 is 65.5 cents per mile. For example, if you drove 1,000 business miles, your deduction would be 1,000 x $0.655 = $655.

Audit Risk & Documentation Tips

Moderate audit risk. Keep a detailed log of business miles driven, including dates, destinations, and business purposes. Retain receipts for gas purchases and maintain records of total miles driven during the year to substantiate the business-use percentage if using actual expenses.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsContractors

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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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