Impact on taxes of buying a new car as business expense?
My understanding is that for 2011, 100% of the car purchase price can be deducted as business expense. I'm still looking into confirming this unless someone who already knows can confirm.
If I finance 100% of the 35K, would only the payments made in 2011 be allowed to be deducted as business expense or can you still deduct the whole 35K?
If I paid $5K cash (out of pocket) and financed $30K, would the amount deducted on the taxes be $5k + the payments made in 2011 or the whole 35K?
Is there anything else I need to be aware of when buying a car for Business?
Thanks in advance for any input provided.