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1. When it comes to Bookkeeping for gas expenses while writing off mileage for your business, it’s important to understand how mileage deductions work and how to properly account for expenses related to vehicle use. Below is a detailed guide on how to manage these expenses:

   Mileage Deduction vs. Actual Expenses

   When deducting vehicle expenses for tax purposes, you generally have two options:

   1. Standard Mileage Rate: You deduct a specified rate per mile driven for business purposes. This rate is set by the IRS and includes compensation for fuel, maintenance, and other vehicle-related expenses.

   2. Actual Expenses Method: You deduct the actual expenses incurred for using the vehicle for business purposes, such as gas, repairs, depreciation, insurance, etc.

   Choosing a Method

   • Standard Mileage Rate: If you choose this method, you cannot separately write off gasoline or other vehicle expenses.
   • Actual Expenses: If you elect to use this method, you’ll need to keep detailed records of all related expenses, including receipts for gas, maintenance, etc.

   Important: Once you choose a method for a vehicle, you generally must use the same method for the entire year, unless you elect otherwise.

   How to Bookkeep Gas Expenses

   If Using Standard Mileage Rate:

   • Track your business miles: Maintain a detailed log of business miles driven. Note the date, starting and ending odometer readings, and the purpose of the trip.
   • Don’t record gas purchases as a business expense: Since gas is included in the mileage rate, do not categorize gas expenses separately in your Bookkeeping if using this method.

   If Using Actual Expenses Method:

   • Track all vehicle expenses: Maintain receipts for gas, repairs, insurance, and other expenditures. You’ll be able to deduct the business-use percentage.
   • Allocate between business and personal use: To allocate expenses between business and personal use, calculate the business-use percentage of the vehicle. This is based on the ratio of business miles to the total miles driven in the year.
   • Example: If you drove 10,000 miles total and 3,000 of them were for business, your business-use percentage is 30%. Thus, you can deduct 30% of your actual expenses.

   Business vs. Personal Card

   Deciding whether to use your business credit card or personal card depends on the method you use:

   • Standard Mileage Rate: It generally doesn’t matter which card you use since you won’t be recording these

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