If a sole-proprietor buys a vehicle primarily for business purposes, what is the best way to account for its expenses come tax time, including the vehicle loan/purchase?

[fulkerson-steven]

If a sole-proprietor buys a vehicle primarily for business purposes, what is the best way to account for its expenses come tax time, including the vehicle loan/purchase? The vehicle is primarily used for business about 80% of the time and some personal use approximately 20%.

[RichardG]

Basically, you have two options: deduct the standard mileage rate for business miles driven during the year, or deduct your actual vehicle business expenses (80% of your total vehicle expenses) for the year and depreciate the cost of the vehicle over time.  

Please follow this link for a detailed explanation of your options.  https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Business-Use-of-Vehicles/INF1207...

You may also want to review IRS Pub 463 to understand your options.  https://www.irs.gov/pub/irs-pdf/p463.pdf