QB Issue Resolution:

If this is a corporation or a partnership, there is a schedule on the tax return to reconcile book to tax profit. That is where depreciation claimed for tax purposes but not for book purposes, would be a reconciling item.  The government provides investment incentives so that fixed assets can be fully expensed before their useful life has ended, which leads to a misstatement of the reasonable value of the assets of the business, which seems to be what happened here. Even if this is a sole proprietorship, the same principle applies.  So it makes sense to depreciate the asset based on the estimated useful life, not on what the IRS allows.  There are generally accepted principles for estimated useful life.  I believe for vehicles it is 5 years, so depreciation would be 1/5th every year, using the straight line method.

Resolution for Issue 'Hi. Should I track depreciation of fixed assets for company valuation purposes even if I expensed them for tax purposes in the 1st year? E.g., current value of tractor.' available: Yes (Solved).
Source: Intuit Community forum.

Hi. Should I track depreciation of fixed assets for company valuation purposes even if I expensed them for tax purposes in the 1st year? E.g., current value of tractor.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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