Yes, your total cost is correct. The total cost should be the down payment and the amount financed per your figures above.
- $4,750.40 + $36,942.00 = $41,692.40 (these two figures together should be the full cost of the vehicle).
Keep in mind that only the business use percentage of the vehicle can be used for depreciation and all expenses related to the vehicle. The business use percentage is the business miles divided by total miles driven in 2023 and this will fluctuate each year.
The standard mileage rate (SMR) is only available if it is used the first year a vehicle is placed in service. If you choose not to use this the first year, you can never use it for this vehicle.
- Self-employed and business SMR 2023: 65.5 cents/mile
TurboTax will walk you through this.
Depreciation limits on business vehicles. The total section 179 deduction and depreciation you can deduct for a passenger automobile, including a truck or van, you use in your business and first placed in service in 2023 is $20,200, if the special depreciation allowance applies, or $12,200, if the special depreciation allowance does not apply. See Maximum Depreciation Deduction in chapter 5
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