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

TL;DR

Gas expenses for work can be deductible as a business expense if the vehicle is used for business purposes. However, personal use of the vehicle is not deductible, and proper documentation is essential to substantiate the business use.

Detailed Answer

Gas expenses are deductible when they are directly related to business activities. For example, if you use your car to travel to client meetings, job sites, or to purchase supplies, the gas used for these trips can be deducted. However, commuting from your home to your regular place of business is considered a personal expense and is not deductible. To claim this deduction, you must keep detailed records of the business miles driven and the total miles driven during the year. You can choose between the actual expense method, where you deduct the actual cost of gas, or the standard mileage rate method, which includes gas as part of the per-mile rate. For 2023, the standard mileage rate is 65.5 cents per mile. It's important to choose the method that provides the greater deduction and to consistently use that method each year.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using Form 2106 for employee business expenses, report on Line 1.

Real World Example

A freelance graphic designer drives 5,000 miles in a year for client meetings and project work. 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 business miles driven by the IRS mileage rate (e.g., 5,000 miles x $0.655 = $3,275). For the actual expense method, total all vehicle expenses (gas, maintenance, insurance) and multiply by the percentage of business use.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain a detailed mileage log, including dates, destinations, purpose of each trip, and odometer readings. Keep receipts for gas purchases and any other vehicle-related expenses. Consistent and thorough documentation will help substantiate the deduction if audited.

IRS Reference

IRS Publication 463 (Travel, Gift, and Car Expenses), IRS Publication 535 (Business Expenses), and IRS Topic No. 510 (Business Use of Car).

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 18, 2025

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