IRS Form 4562 2018 Depreciation and Amortization (Including Information on Listed Property)

What Is IRS Form 4562?

‚ÄčIRS Form 4562, Depreciation and Amortization (Including Information on Listed Property) is the form you generally use to request your depreciation and amortization deductions. This document can also be used to make the election under section 179 and to provide the information regarding the investment or business application of vehicles and other listed property.

The form - also known as the IRS depreciation and amortization form - was issued by the Internal Revenue Service (IRS). The form is revised annually. You can download and complete the latest IRS Form 4562 fillable version through the link below.

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IRS Form 4562 Instructions

Fill out and submit IRS 4562 if you request:

You should not fill out this form if you are an employee and wish to deduct job-related vehicle expenses. Use either Form 2106, Employee Business Expenses or Form 2106-EZ, Unreimbursed Employee Business Expenses instead.

Depreciation is the deduction that allows you to recover the costs of your business or other property over a few years. You can depreciate both tangible and intangible property. Tangible property usually includes buildings, vehicles, machinery, furniture, and others. This is one of the ways to claim a tax deduction as a homeowner (for homeowners that rent out their property). Intangible property includes computer software, patents, and copyrights.

Complete a separate IRS 4562 for each business or activity you indicate on your tax return. If you need more space to provide full information, attach additional sheets. However, you can file only one Part I in total. That is why if you have more than one business or activity, allocate your section 179 expense deductions among them. More detailed explanations and definitions are provided in the official Instructions for Form 4562 issued by the IRS. Additional step-by-step completion instructions are provided below.

How to Fill out IRS Form 4562?

  • Enter your name as it appears on your tax return form, specific business or activity you claim depreciation and amortization for, and identifying number at the top part of the page;
  • Part I. Election to Expense Certain Property under Section 179. Claim section 179 deductions on computer software you use for your business and some kinds of tangible property in this part. It will allow you to deduct the full price you paid for a specific property at once instead of lowering it gradually year by year via depreciation. The maximum amount you can deduct is $1,000,000. Use the worksheet provided in the IRS-issued instructions to calculate your amount. Remember that estates and trusts are not allowed to complete this part;
  • Part II. Special Depreciation Allowance and Other Depreciation. Claim extra deductions in this part. You can claim deductions only for the first year you use an item for your business purpose in this part;
  • Part III. MACRS Depreciation. The Modified Accelerated Cost Recovery System (MACRS) can be applied for depreciation of any tangible property you have used for your business since 1986, excluding videotapes, sound recordings, and films. The MACRS includes both General Depreciation System and Alternative Depreciation System;
  • Part IV. Summary. This part is self-explanatory. It requires information from other parts. That is why you have to complete Part V first;
  • Part V. Listed Property. Fill out this part to claim deductions for listed property, including certain types of vehicles, aircraft, as well as property used for recreation and entertainment (e.g., photographic and video recording equipment);
  • Part VI. Amortization. Complete this part if you elect amortization. You cannot select section 179 expense deduction or depreciation for the part of the property you amortize.

File the IRS depreciation and amortization form attached to your tax return documents.

4562
Depreciation and Amortization
OMB No. 1545-0172
2018
Form
(Including Information on Listed Property)
Attach to your tax return.
Attachment
Department of the Treasury
179
Go to www.irs.gov/Form4562 for instructions and the latest information.
Sequence No.
(99)
Internal Revenue Service
Name(s) shown on return
Business or activity to which this form relates
Identifying number
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1 Maximum amount (see instructions) .
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1
2 Total cost of section 179 property placed in service (see instructions)
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3 Threshold cost of section 179 property before reduction in limitation (see instructions) .
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4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- .
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5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing
separately, see instructions
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5
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(a) Description of property
(b) Cost (business use only)
(c) Elected cost
7 Listed property. Enter the amount from line 29 .
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8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
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9 Tentative deduction. Enter the smaller of line 5 or line 8 .
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10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562 .
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11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions .
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12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 .
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13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 ▶
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Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.
Part II
Special Depreciation Allowance and Other Depreciation (Don
t include listed property. See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year. See instructions .
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15 Property subject to section 168(f)(1) election .
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16 Other depreciation (including ACRS)
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Part III
MACRS Depreciation (Don
t include listed property. See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2018 .
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18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here
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Section B—Assets Placed in Service During 2018 Tax Year Using the General Depreciation System
(b) Month and year
(c) Basis for depreciation
(d) Recovery
(a) Classification of property
(e) Convention
(f) Method
(g) Depreciation deduction
placed in
(business/investment use
period
service
only—see instructions)
19a
3-year property
b
5-year property
c
7-year property
d 10-year property
e 15-year property
f 20-year property
g 25-year property
h Residential rental
property
i Nonresidential real
property
Section C—Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System
20a Class life
b 12-year
c 30-year
d 40-year
Part IV
Summary (See instructions.)
21 Listed property. Enter amount from line 28
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22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions
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23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs .
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23
4562
For Paperwork Reduction Act Notice, see separate instructions.
Form
(2018)
Cat. No. 12906N
4562
Depreciation and Amortization
OMB No. 1545-0172
2018
Form
(Including Information on Listed Property)
Attach to your tax return.
Attachment
Department of the Treasury
179
Go to www.irs.gov/Form4562 for instructions and the latest information.
Sequence No.
(99)
Internal Revenue Service
Name(s) shown on return
Business or activity to which this form relates
Identifying number
Part I
Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1 Maximum amount (see instructions) .
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1
2 Total cost of section 179 property placed in service (see instructions)
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3 Threshold cost of section 179 property before reduction in limitation (see instructions) .
3
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4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- .
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4
5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing
separately, see instructions
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5
6
(a) Description of property
(b) Cost (business use only)
(c) Elected cost
7 Listed property. Enter the amount from line 29 .
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7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
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9 Tentative deduction. Enter the smaller of line 5 or line 8 .
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9
10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562 .
10
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11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions .
11
12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 .
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.
.
.
.
12
13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 ▶
13
Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.
Part II
Special Depreciation Allowance and Other Depreciation (Don
t include listed property. See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year. See instructions .
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15 Property subject to section 168(f)(1) election .
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15
16 Other depreciation (including ACRS)
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16
Part III
MACRS Depreciation (Don
t include listed property. See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2018 .
17
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.
.
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here
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Section B—Assets Placed in Service During 2018 Tax Year Using the General Depreciation System
(b) Month and year
(c) Basis for depreciation
(d) Recovery
(a) Classification of property
(e) Convention
(f) Method
(g) Depreciation deduction
placed in
(business/investment use
period
service
only—see instructions)
19a
3-year property
b
5-year property
c
7-year property
d 10-year property
e 15-year property
f 20-year property
g 25-year property
h Residential rental
property
i Nonresidential real
property
Section C—Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System
20a Class life
b 12-year
c 30-year
d 40-year
Part IV
Summary (See instructions.)
21 Listed property. Enter amount from line 28
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21
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions
.
22
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs .
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.
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23
4562
For Paperwork Reduction Act Notice, see separate instructions.
Form
(2018)
Cat. No. 12906N
2
Page
Form 4562 (2018)
Part V
Listed Property
(Include automobiles, certain other vehicles, certain aircraft, and property used for
entertainment, recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a,
24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section A—Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)
24a Do you have evidence to support the business/investment use claimed?
24b If “Yes,” is the evidence written?
Yes
No
Yes
No
(c)
(e)
(a)
(b)
(f)
(g)
(h)
(i)
Business/
(d)
Basis for depreciation
Type of property (list
Date placed
Recovery
Method/
Depreciation
Elected section 179
investment use
Cost or other basis
(business/investment
vehicles first)
in service
period
Convention
deduction
cost
percentage
use only)
25 Special depreciation allowance for qualified listed property placed in service during
the tax year and used more than 50% in a qualified business use. See instructions .
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26 Property used more than 50% in a qualified business use:
%
%
%
27 Property used 50% or less in a qualified business use:
S/L –
%
S/L –
%
S/L –
%
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1
.
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29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 .
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Section B—Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other “more than 5% owner,” or related person. If you provided vehicles
to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.
(a)
(b)
(c)
(d)
(e)
(f)
Vehicle 1
Vehicle 2
Vehicle 3
Vehicle 4
Vehicle 5
Vehicle 6
30 Total business/investment miles driven during
the year (don’t include commuting miles)
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31 Total commuting miles driven during the year
32 Total other personal (noncommuting)
miles driven
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33 Total miles driven during the year. Add
lines 30 through 32 .
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Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
34 Was the vehicle available for personal
use during off-duty hours? .
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35 Was the vehicle used primarily by a more
than 5% owner or related person? .
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36 Is another vehicle available for personal use?
Section C—Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren’t
more than 5% owners or related persons. See instructions.
Yes
No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by
your employees? .
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38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners .
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39 Do you treat all use of vehicles by employees as personal use?
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40 Do you provide more than five vehicles to your employees, obtain information from your employees about the
use of the vehicles, and retain the information received? .
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41 Do you meet the requirements concerning qualified automobile demonstration use? See instructions. .
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Note: If your answer to 37, 38, 39, 40, or 41 is “Yes,” don’t complete Section B for the covered vehicles.
Part VI
Amortization
(e)
(b)
(a)
(c)
(d)
Amortization
(f)
Date amortization
Description of costs
Amortizable amount
Code section
period or
Amortization for this year
begins
percentage
42 Amortization of costs that begins during your 2018 tax year (see instructions):
43 Amortization of costs that began before your 2018 tax year .
43
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44 Total. Add amounts in column (f). See the instructions for where to report .
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4562
Form
(2018)

Download IRS Form 4562 2018 Depreciation and Amortization (Including Information on Listed Property)

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