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Is can you write off gas tax deductible?

TL;DR

Gas expenses can be deductible if they are incurred for business purposes.

Detailed Answer

Gas expenses are deductible when they are directly related to business use of a vehicle. This includes driving to meet clients, traveling between different work sites, or any other business-related travel. Personal use of a vehicle, commuting from home to a regular place of work, or any non-business travel is not deductible. Taxpayers can choose between deducting actual expenses, which includes gas, or using the standard mileage rate, which accounts for gas and other vehicle costs.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 9 for actual expenses or Line 44 for standard mileage rate.

Real World Example

A freelance photographer drives to various locations for photo shoots. She tracks her mileage and gas expenses. At the end of the year, she can deduct these expenses as part of her business costs.

Calculation Required

A calculation is required for this deduction.

If deducting actual expenses, calculate the total cost of gas used for business purposes. Alternatively, use the IRS standard mileage rate by multiplying the total business miles driven by the rate.

Audit Risk & Documentation Tips

Keep detailed records of all business trips, including dates, mileage, and purpose of travel. Maintain receipts for gas purchases if deducting actual expenses. Use a mileage log or app to track business miles accurately.

IRS Reference

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

Relevant Industries

FreelancersSmall BusinessSales ProfessionalsReal Estate Agents

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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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