This means you have the depreciation value set too high compared to the vehicle's worth. You can fix this by following these steps:
- Delete the vehicle
- Add the Vehicle back in with its original service date
- Calculate your estimated depreciation per year based on miles used for the business
Depreciation is allowed because it is reasonable to expect the asset to wear out and the value to lower as the asset is used. Depreciation enables business owners to write off the wear on an asset as it is used, sold, or disposed of.
For more information, see the link below:
Depreciation of Business Assets
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