Do you happen to have an explanation why by year 3 we are able to write off an amount that tops the three years combined to over the original cost of the car ? (When adding together Year 1 and 2, those amounts made sense to me. But by year 3, I figured it was over and we wouldn't have more deprecitation or at least not at the above $7000 mark TT calculated and carried over.
We do show a profit each year, so not making enough 1099 money isn't a concern for its calculation. We took the extra / special dep allowed year 1. Carry over year 2.
I wasn't sure if they take into account how much we drove it this past year? I figured we lose the higher write off later years based on mileage even though in 2024 our mileage was quite high and when I enter gas receipts the write off naturally it's way less. (Like $1000 gas receipts instead of .70c mile for about 9000 miles.)
I wasn't expecting an approx $7000 depreciation this year in addition to the actuals that were about $2000 total in gas and maint.) Before we file, I want to make sure this isn't a mistake. Your example is great for a higher priced car. Since ours was 30,800 I'm not sure why this year is topping beyond 32,000 when all three years are added together.
