Checkmark iconCan I Write This Off?

Is can you write off gas to work a business expense?

TL;DR

Gas expenses for commuting to a regular workplace are not deductible as a business expense. However, gas used for business-related travel is deductible, provided it meets specific IRS criteria.

Detailed Answer

Gas expenses incurred while commuting from home to a regular place of work are considered personal commuting expenses and are not deductible. However, if you use your vehicle for business purposes, such as traveling to meet clients, attending business meetings, or transporting goods, the gas expenses for these trips can be deducted. To qualify, the travel must be ordinary and necessary for your business. For example, a self-employed consultant driving to a client site can deduct the gas used for that trip. The IRS allows you to deduct either the actual expenses incurred for gas or use the standard mileage rate, which includes gas, maintenance, and depreciation.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses. If using actual expenses, calculate on Form 4562.

Real World Example

A freelance graphic designer drives 15 miles to a client's office for a project meeting. The gas used for this trip is deductible as a business expense. If the designer drove 300 miles for business purposes in a month, they could deduct the gas costs for those miles.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, you can use the standard mileage rate (e.g., 65.5 cents per mile for 2023) or the actual expense method, which requires tracking all vehicle expenses and calculating the business-use percentage.

Audit Risk & Documentation Tips

Audit risk is moderate. To defend this deduction, keep a detailed mileage log or use a mileage tracking app, noting the date, purpose of the trip, and miles driven. Retain receipts for gas purchases and any other vehicle-related expenses if using the actual expense method.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersConsultantsReal Estate AgentsSales Professionals

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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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