01 16

Can i write off fuel expenses

can i write off fuel expenses What You Can and Can't Write Off With Business Travel. by Susan Payton. 2 min read. Try QuickBooks Free. and expect to write it off. Unreasonable Expenses. You can write off gasoline costs for your vehicle as long as. Can You Write Off Gas on. you can take the deduction if all expenses exceed 2 percent of. How to Write Off Your Car or Truck for Business Christopher Hann. Magazine Contributor. How much of my vehicle usage can I claim as a business expense? A.

Can I deduct commuting expenses like gas, mileage, - TurboTax

With the mileage deduction, the IRS only lets you deduct trips that are for business. The natural question is: what types of trips are considered business drives? We’ve put together this simple chart to let you know what drives are considered business by the IRS:

  • Travel between Offices: You can take this deduction for travel from your office or work site and you drive to a second place of business.
  • Errands/Supplies: Driving for business-related errands qualifies. This can include trips like going to the bank, office supply store or post office. Additionally, these small trips add up quickly. Many business owners forget to keep track of these drives.
  • Business Meals and Entertainment: Trips you make to meet with clients or vendors qualify for this deduction. This can include drives for dinner, coffee, drinks, etc.
5 cents per business mile.

Business Mileage Does Not Include Commuting

There are some strict rules on what makes up deductible business driving. The one that most people get in trouble with is commuting. Commuting occurs when you go from home to a permanent work location—either your:

  • Office or other principal place of business
  • Another place where you have worked or expect to work for more than one year.

Even if a trip from home to your office (or other principal place of business) has a specific business purpose—for example, to meet with a client at your office—it is still considered commuting and is not eligible for a mileage deductible if you start out from your home.

Working during a commuting trip doesn’t make it a business drive. Even if you make business calls on your cell phone, listen to work-related tapes or have a business discussion with an associate or employee, it’s still considered commuting.

What remains is what you get to write off.

New Job

If you land a post-college job that requires relocating, you can write off the costs of the move. That includes a 24 cent deduction per mile if you drive to your new home. Just moving out of the house and down the street doesn't cut it. Your first full-time job has to be at least 50 miles from your home to claim the write-off. You also need at least 39 weeks of full-time work in the year following the move.


If you help pay for college by working on the side, your work-related driving may be another write-off.

For example, if you use the standard medical rate and drive 1,000 miles for medical treatment in 2016, you’d get a $190 deduction to add to all your other deductible medical expenses for the year. You can also deduct your parking fees and tolls. Whichever method you use, you must keep track of your mileage while driving for medical treatment.

Cost of Meals

You can deduct the cost of meals at a hospital or similar facility if a main reason for being there is to get medical care. You can't include in medical expenses the cost of meals that aren't part of inpatient care. For example, you can’t deduct meals you pay for while traveling to a hospital or other medical facility.

Cost of Lodging

Lodging costs you incur while traveling out of town are deductible if:

  • the lodging is primarily for, and essential to, medical care
  • the medical care is provided by a doctor in a licensed hospital or in a medical care facility
  • the lodging isn't extravagant
  • there's no significant element of personal pleasure, recreation, or vacation in the travel away from home.

A: The IRS code governing vehicle use runs roughly the length of "Infinite Jest." But it doesn't have to be that complicated, says Jay Soled, a professor of accounting and information systems at Rutgers University, who has testified before Congress on tax compliance issues. "The problem is the rules are a morass," Soled says.

So let's break it down. Like all taxpayers, entrepreneurs who use their car, truck, minivan or rickshaw for business purposes may be eligible to claim a deduction or exclude the value of said vehicle from their income. This is typically done in one of two ways.

If you own the vehicle, the most common method is known to the bean counters at the IRS as an accountable plan, which is akin to an expense account. You drive your vehicle for work purposes, keep track of the costs incurred while doing so and seek reimbursement. We're talking about tolls, parking, gas, car washes, mileage, maintenance and repairs. Sorry, but the tax code does not permit deductions for commuting to work, which is considered a personal use.

Typically, Soled says, you submit these expenses to your employer, and the employer ponies up.

There are some important restrictions on who can use the standard mileage rate. If you don’t qualify to use it, you must use the more complicated actual expense method. First, and most important, you must use the standard mileage rate the first year you use a car for business. If you fail to do so, you are forever stuck using that method for that car.

If you use the standard mileage rate the first year, you can switch to the actual expense method in a later year, and then switch back and forth between the two methods after that, subject to certain restrictions. For this reason, if you’re not sure which method you want to use for, it’s a good idea to use the standard mileage rate the first year you use the car for business.

Download MileIQ to start tracking your miles »


MileIQ is a smart mileage tracking app for iOS and Android that catches your drives automatically, calculates their value, then lets you easily classify them as business or personal when you’re ready.
As Soled says, "It's supposed to constitute a checks-and-balances system."

In the second scenario, an entrepreneur may supply an employee with a company-owned vehicle. The employee keeps track of the time he or she spends driving the car for business and personal use. The time spent using the car for business purposes should not be considered as income, but the employee's personal use of the car must be considered income (based on the fair-market annual lease value of the car). For example, you provide an employee with a car that has an annual lease value of $20,000. If the employee spends one-quarter of his or her driving time for personal use, the employee must claim $5,000 as noncash income.

Those are two common ways in which vehicle claims are considered for tax purposes--the easy part, if you will. In reality, it can get more complicated. What if an entrepreneur drives to more than one job site? Or to two different jobs? "It's not black and white," Soled concedes, "and it's hard for the average taxpayer to decide."

Which might help explain why compliance with IRS rules on autos is less than perfect.


  1. Rowoceceququdi

    I need to claim comp for the delay/expenses/downgrade - can I do in 1 form rather than all separately? Silver club member

  2. Teyufawinol

    I"m not sure id be able to cover your expenses in addition to mine

  3. Wigimequfobafe

    I thanked my mom for paying all of my expenses for Bangtan"s concert last May 7 in Manila Such a supportive mother I"ll save next time

  4. Domecevivim

    I believe insurance companies are only allowed to make around ~1% profit. It"s expensive because of administrative expenses

  5. Fatusufusutu

    Yeah, make it great by leaving it for good! PLEASE!!!!!!! I"ll start a gofundme for your travel expenses.

  6. Kizoyihi

    IKR! I bought everything that I own and paid for my own vacation and expenses! What is movie tickets?

  7. Filucolixe

    I want to publicly shame Pete Smith for medical expenses because a 2007 Britney Spears role play

  8. Diyojakowote

    Me when I finish my expenses

  9. Mayegasi

    So refuse further correspondence with me on expenses claim, though I did what they told me to. Won"t be flying with them again

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>