Before You Start. See Overview: Software Costs â Capitalize vs. Expense. For invoices having a combination of eligible and ineligible costs, a reasonable attempt to split the respective costs should be made and rationale should be documented. See Overview: Buying and Accounting for Capital Equipment for information on hardware expenditures.
Instead, you're focused on the price you pay overall, and if the dealer wants to include a doc fee in that price, then so be it. For instance, say you have a $30,000 budget and you're looking at a $28,000 car with a $500 doc fee. Add in a 7-percent sales tax, and this car costs $30,495.
Michigan caps dealer documentation fees at $200 or 5 percent of the price of the car, whichever is less, according to Michigan's Department of State. The state adjusts the cap every two years, and the last adjustment came in 2017.