Gas Expenses Deductions
Gas, oil, repairs, insurance, registration fees, lease payments, depreciation, bridge and tunnel tolls, and parking can all be written off. Keep a detailed log, all receipts, or track yearly mileage. Then deduct.
Mileage Reimbursement Rates
Beginning January 1, 2019, the car use standard mileage reimbursement rate is 58 cents per mile, up from 54.5 cents. Employers can reimburse employees up to 58 cents per business mile.
Documentation for Deductions
Gas receipts best prove valid gas expense deductions. Without complete records, you must provide specific written or oral statements.
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Ideally, save gas receipts all year instead of compiling deductible driving expenses at tax time.
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Log each driving session for write offs: Date, starting/ending locations, trip reason, beginning/ending odometer readings, round-trip mileage. Tolls and parking are deductible too.
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To write off driving costs, apply the IRS per-mile deduction to business miles driven. Or deduct part of actual driving expenses ‒ gas, maintenance, repairs, tires.
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For 2020 filings, self-employed can claim 57.5 cents per business mile driven. All miles are deductible regardless of how much one drives for work.