Your actual expenses are only deductible if you take the actual expense deduction and not the standard mileage deduction, so yes, that does matter.
If you use the actual expense method all of your expenses are deductible that are related to the business use portion of your vehicle. Your expenses would need to be prorated based on business versus personal use. If you drive 10,000 and only 5,000 of those miles are for business then only half of your expenses would be deductible as business expenses.
The purchase price and fees would be part of your cost of the car. If you choose to take the actual expense deduction, you may be able to take a Section 179 Depreciation deduction for the car you bought which would allow you to write off all of the car (business portion use) in the year you bought it. However, if you got rid of it before the 5 years of its expected useful life, you would end up having to add some of that back to your income in the year you got rid of it. You do not have to take section 179, it is simply an option.
Deducting Auto Expenses
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