is gas an expense that can be written off for a construction business?

I am keeping the books for a small construction business that recently went from a sole proprietor to a duel partnership. in the past we've used standard mileage with a mileage log to write it off on our schedule C. Now that there is not a Schedule C and everything is done on the 1065 I'm wondering if the partners can keep a gas card and use it to fill their trucks used for busines and then have that expense for write off. neither of the trucks are considered an asset for the business if that makes a difference.


Hi Faith!

Good question. Yes, you can deduct mileage for your trucks in the construction business. The major problem as I see it is that the trucks are not business property.

If you get a gas card and fill the trucks, how do you know how much gas was used for business and how much was used for personal needs?

A better suggestion is to keep a log like you have been doing, and reimburse each partner weekly/monthly for business mileage. That would be a reimbursed business expense.

Hope that helps!


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