How do I adjust a balance sheet fixed asset value that is overstated?

Airbnbstager2026
Airbnbstager2026 Member Posts: 1 Newcomer
in General

My vehicle is not depreciated as I take the standard mileage deduction for my llc. Therefore the vehicle value on the balance sheet is too high. How can I adjust this in my books?

Answers

  • GregW
    GregW Star Posts: 13 image

    IRS Pub 463 contains a table in Chapter 4 which indicates the portion of the standard mileage rate which is treated as depreciation each year. You reduce the basis of the vehicle by that amount. For example, the depreciation rate per mile for 2025 was 33 cents. If you took the standard mileage deduction for 10,000 miles, you reduce the basis by $3,300 (but not below zero). You do this for each year you take the standard mileage rate.

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