Deducting gasoline used for equipment

[HAS0586]

How do I deduct gasoline used for my equipment? I do not see anywhere were I might put it on my 1040 form. Any help appreciated!

[razor1]

Do you have an actual business or are you just working on the side?

[Proc's Lawncare]

Ya if your a licensed business you will need to file long form and take your deductions, we've used turbo tax and "edited in" the fuel cost expense... Very easy to do, hope this helps!

[Drew Gemma]

you can also braek that down and also get a credit for all gas used off road.

[Fvstringpicker]

On schedule C, just list it as a separate item under "Other expenses" in part V and carry the amount over, with other "other expenses" to line 27.

[HAS0586]

Do you have an actual business or are you just working on the side?

I was doing it part-time last year but am now going full time. But I was registered with the county and have my DBA and EIN.

On schedule C, just list it as a separate item under "Other expenses" in part V and carry the amount over, with other "other expenses" to line 27.

I thought that would be the way but wanted to make sure.

you can also braek that down and also get a credit for all gas used off road.

I have heard about the credit. Can I deduct the cost of the fuel and get the credit at the same time?

Appreciate the help guys!

- Hunter

[dougaustreim]

You get both the deduction and the credit for the federal tax paid for off road use, but that credit will be considered income for this next year.

[HAS0586]

Originally Posted by dougaustreim

You get both the deduction and the credit for the federal tax paid for off road use, but that credit will be considered income for this next year.

Awesome! Thanks.

- Hunter

[Fvstringpicker]

Be extremely careful with the fuel tax credit thing. Since fraudulent claims is on the list of scams that the IRS is watching for, it is wise to be absolutely sure you have sufficient documentation to support your claim. You must have documentation and contemporaneous records supporting your claim that clearly establishes the the dates, names/addresses of vendors, the purposes for which you used the fuel, and the number of gallons used. Penalties alone can run as high as $5 grand.

[DLCS]

Ok ,So like for us who buy our diesel fuel at the truck stop and we only use diesel in the ztrs, We have no trucks that use diesel. How do we document that to get the Federal fuel tax credit on the diesel? How do we prove that we only used the diesel off road. How should we document that?