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Is how to write off gas as a business expense a valid tax write-off?

TL;DR

Gas expenses can be deducted as a business expense if they are directly related to business use of a vehicle. However, personal use of the vehicle is not deductible, and proper documentation is crucial to substantiate the business use portion.

Detailed Answer

Gas expenses are deductible when they are incurred for business purposes. This includes driving to meet clients, traveling between job sites, or other business-related travel. Personal commuting from home to a regular place of business is not deductible. Taxpayers can choose between deducting actual expenses, which includes gas, or using the standard mileage rate, which covers all vehicle expenses. For actual expenses, only the business-use portion is deductible. For example, if a vehicle is used 60% for business, then 60% of the gas expenses can be deducted. It's important to maintain a log of business miles driven and keep receipts for gas purchases.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses, or Form 2106 for employees claiming unreimbursed expenses.

Real World Example

A freelance graphic designer uses their car to visit clients and attend networking events. They drive 10,000 miles in a year, with 6,000 miles being for business purposes. They spend $2,000 on gas for the year. They can deduct 60% of their gas expenses, which is $1,200, as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion of gas expenses, determine the percentage of total miles driven for business purposes. Multiply the total gas expenses by this percentage to find the deductible amount.

Audit Risk & Documentation Tips

The audit risk for gas deductions is moderate. Taxpayers should keep detailed mileage logs showing the date, destination, purpose, and miles driven for each business trip. Retain all gas receipts and any relevant contracts or client communications that justify the business purpose of the travel.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses.

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesSales Representatives

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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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