You CAN use Section 179 for the entire $8000. However, that means you will ALWAYS need to use the Actual Expense Method for that vehicle, and can NOT use the Standard Mileage Rate in future years. Also, be aware that if the business usage ever drops to 50% or less (including converting it to personal use or selling it) over the next 5 years, there will be tax ramifications because you used Section 179.
Yes, if you are using the Actual Expense Method, you can also enter all of your other expenses, including gasoline, repairs, maintenance, and insurance. If you use Section 179 on the entire amount this year, there will be no further depreciation to claim in future years.
