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

TL;DR

Yes, you can write off gas as a business expense if it is used for business purposes.

Detailed Answer

Gas expenses can be deducted as a business expense if the vehicle is used for business purposes. This includes travel between job sites, client meetings, or other business-related travel. Personal travel or commuting from home to a regular place of business is not deductible. Taxpayers can choose to deduct actual expenses, which include gas, or use the standard mileage rate, which covers all vehicle expenses.

Where to Put It on the Tax Form

Schedule C (Form 1040) for sole proprietors, or Schedule E for rental activities, Part II, Line 9 for car and truck expenses.

Real World Example

A freelance photographer uses their car to travel to various photoshoot locations. They can deduct the cost of gas used for these trips as a business expense.

Calculation Required

A calculation is required for this deduction.

If using actual expenses, calculate the total amount spent on gas for business use. Alternatively, use the IRS standard mileage rate for business miles driven.

Audit Risk & Documentation Tips

Maintain a detailed mileage log and keep receipts for gas purchases. Document the purpose of each trip to substantiate the business use of the vehicle. This documentation will be crucial in the event of an audit.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessSales ProfessionalsContractorsConsultants

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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