I've purchased a vehicle for business use. As part of that purchase, I pay taxes and registration fees. It is my understanding that those taxes and registration fees are deductible business expenses. However, from what I've read, I also need to include those in the cost basis of the vehicle.
If I do this, then those taxes and fees would be deducted twice, once when deducting general expenses and a second time as a depreciation expense. I'd like clarification on how to treat those taxes and fees. Are they a business expense that I can deduct directly? Or are they part of the cost basis of the vehicle and deducted indirectly via depreciation expense?
