Whether this will work out for you depends on how you will use the vehicle in your business. Most of the time, the standard mileage rate exceeds the actual expenses of a vehicle used in a business.
The IRS mileage rate for 2021 is 56 cents per mile. You can deduct your vehicle expenses in one of two ways. You can track all your car expenses, including gas, oil, repairs, insurance, and depreciation, and deduct the portion of your total car expenses that apply to business miles. Or you can deduct a flat rate for every business mile you drive, which is called the standard mileage deduction.
If you have a car payment, you can deduct the interest portion of the car payment. If you have a leased vehicle you can deduct the lease payment in proportion to the amount of business use of the vehicle.
The down payment and cost of the vehicle is depreciated over the life of the vehicle. You also need to have enough business income to cover the deductions that you take.
