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Is can you write off gas for work tax deductible?

TL;DR

Gas expenses for work can be tax-deductible if they are directly related to business activities, but personal commuting costs are not deductible. It's important to distinguish between business and personal use of a vehicle.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes, such as traveling to meet clients, attending business meetings, or transporting goods. However, commuting from home to your regular place of business is not deductible. If you use a vehicle for both personal and business purposes, only the portion of gas expenses attributable to business use is deductible. You can either deduct actual expenses, including gas, or use the standard mileage rate, which covers gas and other vehicle expenses. For 2023, the standard mileage rate is 65.5 cents per mile. It's crucial to maintain detailed records of your business mileage and expenses to substantiate your deduction.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using the standard mileage rate, also complete Part IV of Schedule C.

Real World Example

A freelance graphic designer drives to client meetings and industry events, logging 3,000 business miles in a year. Using the standard mileage rate, they can deduct $1,965 (3,000 miles x $0.655) on Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, multiply the total business miles driven by the standard mileage rate (e.g., 3,000 miles x $0.655). Alternatively, if using actual expenses, calculate the percentage of business use and apply it to total vehicle expenses, including gas.

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 using actual costs. Consistency and thorough records are key to defending this deduction.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsSales ProfessionalsDelivery Services

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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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