This includes all the expenses of operating the vehicle except for the purchase itself. That means gas, insurance, maintenance, parking, tolls, etc. Instead of deducting the purchase price of the vehicle, you deduct depreciation. Charitable contributions Not deductible. As a general rule, you don't get to deduct for the purchase of real estate or equipment.
Depreciation is simple in concept but very complicated in details.
Land is not depreciable but buildings are. Two common recovery periods are five years for cars and 27.5 years for residential rental property. Now the statement that you can't deduct the purchase price of equipment is not exactly true. The section 179 election does not apply to cars used in your business because cars are subject to absolute dollar limits on the amount you may deduct in every year of the life of the car. Dividends Not deductible.