Is Mileage / Gas Tax Deductible for Your Business?

Yes, mileage / gas is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and mileage / gas typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Mileage / Gas

Deductible for travel between work sites (office to client, client to client). IMPORTANT: Commuting from home to your regular workplace is NEVER deductible. Exception: If home is your principal place of business, travel to first client is deductible.

Requirements to Claim This Deduction

• Must be business travel, not commuting
• Keep contemporaneous mileage log (date, miles, destination, purpose)
• Record odometer readings on Jan 1 and Dec 31
• Choose Standard Mileage OR Actual Expenses (not both)

How to Document Mileage / Gas for Tax Purposes

Proper documentation is critical for any business deduction. For mileage / gas, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 463; Rev. Proc. 2019-46. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.