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Is can you write off gas for work a valid tax write-off?

TL;DR

Yes, you can write off gas for work as a tax deduction, but it must be for business purposes and not personal use. The deduction can be taken as part of the actual vehicle expenses or by using the standard mileage rate.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities. If you use your vehicle for both personal and business purposes, you can only deduct the portion of gas expenses that relate to business use. You have two options: deducting actual expenses (including gas, oil, repairs, etc.) or using the standard mileage rate set by the IRS. For 2023, the standard mileage rate is 65.5 cents per mile. You must choose one method for the entire year. Note that commuting from home to your regular place of work is not deductible, but travel between different work sites or to meet clients is. For example, a freelance photographer driving to various client locations can deduct these 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 for employee business expenses.

Real World Example

A freelance graphic designer drives 3,000 miles in a year to meet clients and attend networking events. Using the standard mileage rate, they can deduct $1,965 (3,000 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 (e.g., 3,000 miles x $0.655). For actual expenses, calculate the percentage of business use and apply it to total vehicle expenses.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records, including a mileage log with dates, destinations, and business purposes. Retain receipts for gas and maintenance if using actual expenses. Consistent and accurate record-keeping is crucial to substantiate the deduction.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses)

Relevant Industries

FreelancersReal Estate AgentsConsultantsContractorsSales Representatives

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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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