You should add the vehicle as an asset for depreciation. Based on your dates, the software will recognize that you are claiming unrecovered basis. Head into Federal Taxes tab >>> Deductions >>> the first section Depreciation of Assets >>> add your vehicle
You are correct that the amount you can deduct is the lessor of $1775 or your basis, so the software will track this for you. You qualify as long as you continue to use it 100% for business.
