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You may deduct sales tax paid for that purchase - use schedule A - www.irs.gov/pub/irs-pdf/f1040sa.pdfOn the line 5 - you should choose "General sales taxes."If you will be using the car for business -you have an option to deduct:
your actual travel expenses - that include all receipts, insurance, depreciation etc, or
use mileage rate.
You may select either method that provides you with better deductions.
Most people use mileage rate deduction because of simplicity.
Please see more details in the IRS publication - 463 - http://www.irs.gov/pub/irs-pdf/p463.pdf
If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then in later years, you can choose to use either the standard mileage rate or actual expenses. If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period.
Okay. So the initial cost I can't write off any of it right?
Generally - you need to depreciate your cost - you may do that if you choose the actual method, but you will not be able to deduct the full cost in the first year.
thanks for your help!
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