Yes, you first enter it as an asset.
You may have options to use the Section 179 deduction and/or Bonus Depreciation for the cost of the vehicle depending on the amount of business use.
NEXT, you choose to take the Standard Mileage (a deduction based on the miles you drove) OR Actual Expenses (gas and oil receipts).
IF you choose Actual Expenses the first year, you must use that every year going forward.
IF you choose Standard Mileage the first year, you can change the method to Actual Expenses in a future year.
So it is a purchase the first year AND an expense to operate year after year.
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