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フォーム 4562 指示

フォーム4562、減価償却および償却のための指示(リストされたプロパティに関する情報を含む)

2018年11月12日

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 4562  
Depreciation and Amortization (Including Information on Listed Property)  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
A section 179 expense deduction (which may include a  
carryover from a previous year).  
Depreciation on any vehicle or other listed property  
Future Developments  
(regardless of when it was placed in service).  
A deduction for any vehicle reported on a form other than  
For the latest information about developments related to  
Form 4562 and its instructions, such as legislation enacted  
after this form and instructions were published, go to IRS.gov/  
Schedule C (Form 1040), Profit or Loss From Business.  
Any depreciation on a corporate income tax return (other  
than Form 1120-S).  
Amortization of costs that begins during the 2023 tax year.  
If you are an employee deducting job-related vehicle  
What's New  
expenses using either the standard mileage rate or actual  
expenses, use Form 2106, Employee Business Expenses, for  
this purpose.  
Section 179 deduction dollar limits. For tax years  
beginning in 2023, the maximum section 179 expense  
deduction is $1,160,000. This limit is reduced by the amount  
by which the cost of section 179 property placed in service  
during the tax year exceeds $2,890,000. Also, the maximum  
section 179 expense deduction for sport utility vehicles  
(SUVs) placed in service in tax years beginning in 2023 is  
$28,900.  
File a separate Form 4562 for each business or activity on  
your return for which Form 4562 is required. If you need more  
space, attach additional sheets. However, complete only one  
Part I in its entirety when computing your section 179  
expense deduction. See the instructions for line 12, later.  
Phase down of the special depreciation allowance for  
certain property. Certain qualified property (other than  
property with a long production period and certain aircraft)  
placed in service after December 31, 2023, and before  
January 1, 2025, is limited to a special allowance of 60% of  
the depreciable basis of the property. Property with a long  
production period and certain aircraft placed in service after  
December 31, 2023, and before January 1, 2025, is limited to  
a special depreciation allowance of 80% of the depreciable  
basis of the property. For certain plants bearing fruits and  
nuts planted and grafted after December 31, 2023, and  
before January 1, 2025, the special depreciation allowance is  
also limited to 60% of the adjusted basis of the specified  
nuts, later.  
Additional Information  
For more information about depreciation and amortization  
(including information on listed property), see the following.  
Pub. 463, Travel, Gift, and Car Expenses.  
Pub. 534, Depreciating Property Placed in Service Before  
1987.  
Pub. 551, Basis of Assets.  
Pub. 946, How To Depreciate Property.  
Definitions  
Depreciation  
Depreciation is the annual deduction that allows you to  
recover the cost or other basis of your business or investment  
property over a certain number of years. Depreciation starts  
when you first use the property in your business or for the  
production of income. It ends when you either take the  
property out of service, deduct all your depreciable cost or  
basis, or no longer use the property in your business or for  
the production of income.  
General Instructions  
Purpose of Form  
Use Form 4562 to:  
Generally, you can depreciate:  
Claim your deduction for depreciation and amortization,  
Make the election under section 179 to expense certain  
Tangible property such as buildings, machinery, vehicles,  
furniture, and equipment; and  
property, and  
Intangible property such as patents, copyrights, and  
Provide information on the business/investment use of  
computer software.  
automobiles and other listed property.  
Exception. You cannot depreciate land.  
Note. Do not use Form 4562 to claim the deduction for  
energy efficient commercial buildings under section 179D.  
Instead use Form 7205, Energy Efficient Commercial  
Buildings Deduction. See Form 7205 and the related  
instructions for more information.  
Accelerated Cost Recovery System  
The Accelerated Cost Recovery System (ACRS) applies to  
property first used before 1987. It is the name given for the  
tax rules that allow a taxpayer to recover through depreciation  
deductions the cost of property used in a trade or business or  
to produce income. These rules are mandatory and generally  
apply to tangible property placed in service after 1980 and  
before 1987. If you placed property in service during this  
period, you must continue to figure your depreciation under  
ACRS.  
Who Must File  
Except as otherwise noted, complete and file Form 4562 if  
you are claiming any of the following.  
Depreciation for property placed in service during the 2023  
tax year.  
Dec 4, 2023  
Cat. No. 12907Y  
       
ACRS consists of accelerated depreciation methods and  
an alternate ACRS method that could have been elected.  
The alternate ACRS method used a recovery percentage  
based on a modified straight line method. See the  
instructions for line 16 for more information. For a complete  
discussion of ACRS, see Pub. 534.  
election is made, the term "section 179 property" will include  
any qualified real property which is:  
Qualified improvement property as described in section  
168(e)(6), and  
Any of the following improvements to nonresidential real  
property placed in service after the date the nonresidential  
real property was first placed in service.  
Modified Accelerated Cost Recovery System  
1. Roofs.  
The Modified Accelerated Cost Recovery System (MACRS)  
is the current method of accelerated asset depreciation  
required by the tax code. Under MACRS, all assets are  
divided into classes which dictate the number of years over  
which an asset's cost will be recovered. Each MACRS class  
has a predetermined schedule which determines the  
percentage of the asset's costs which is depreciated each  
year. For more information, see Part III. MACRS  
2. Heating, ventilation, and air-conditioning property.  
3. Fire protection and alarm systems.  
4. Security systems.  
This property is considered "qualified section 179 real  
property."  
A deduction attributable to qualified section 179 real  
property which is disallowed under the trade or business  
income limitation (see Business Income Limit in chapter 2 of  
Pub. 946) for 2023 can be carried over to 2024. Thus, the  
amount of any 2023 disallowed section 179 expense  
deduction attributable to qualified section 179 real property  
will be reported on line 13 of Form 4562.  
Depreciation, later. For a complete discussion of MACRS,  
see chapter 4 of Pub. 946.  
Section 179 Property  
Section 179 property is property that you acquire by  
purchase for use in the active conduct of your trade or  
business, and is one of the following.  
Amortization  
Qualified section 179 real property. For more information,  
Amortization is similar to the straight line method of  
Tangible personal property, including cellular telephones,  
depreciation in that an annual deduction is allowed to recover  
certain costs over a fixed time period. You can amortize such  
items as the costs of starting a business, goodwill, and  
certain other intangibles. See the instructions for Part VI.  
similar telecommunications equipment, and air conditioning  
or heating units (for example, portable air conditioners or  
heaters). Also, tangible personal property may include  
certain property used mainly to furnish lodging or in  
connection with the furnishing of lodging (except as provided  
in section 50(b)(2)).  
Listed Property  
Listed property generally includes the following.  
Passenger automobiles weighing 6,000 pounds or less.  
Other tangible property (except buildings and their  
structural components) used as:  
Any other property used for transportation if the nature of  
1. An integral part of manufacturing, production, or  
extraction, or of furnishing transportation, communications,  
electricity, gas, water, or sewage disposal services;  
the property lends itself to personal use, such as  
motorcycles, pickup trucks, SUVs, etc.  
Any property used for entertainment or recreational  
2. A research facility used in connection with any of the  
purposes (such as photographic, phonographic,  
communication, and video recording equipment).  
activities in (1) above; or  
3. A facility used in connection with any of the activities in  
(1) above for the bulk storage of fungible commodities.  
Exceptions. Listed property does not include:  
1. Photographic, phonographic, communication, or video  
equipment used exclusively in a taxpayer's trade or business  
or at the taxpayer's regular business establishment;  
2. Any computer or peripheral equipment used  
exclusively at a regular business establishment and owned or  
leased by the person operating the establishment;  
Single purpose agricultural (livestock) or horticultural  
structures.  
Storage facilities (except buildings and their structural  
components) used in connection with distributing petroleum  
or any primary product of petroleum.  
Off-the-shelf computer software.  
3. An ambulance, hearse, or vehicle used for transporting  
Section 179 property does not include the following.  
Property held for investment (section 212 property).  
Property used mainly outside the United States (except for  
persons or property for compensation or hire; or  
4. Any truck or van placed in service after July 6, 2003,  
that is a qualified nonpersonal use vehicle.  
property described in section 168(g)(4)).  
For purposes of the exceptions above, a portion of the  
taxpayer's home is treated as a regular business  
Property used by a tax-exempt organization (other than a  
section 521 farmers' cooperative) unless the property is used  
mainly in a taxable unrelated trade or business.  
establishment only if that portion meets the requirements for  
deducting expenses attributable to the business use of a  
home. However, for any property listed in (1) above, the  
regular business establishment of an employee is their  
employer's regular business establishment.  
Property used by a governmental unit or foreign person or  
entity (except for property used under a lease with a term of  
less than 6 months).  
See the instructions for Part I and Pub. 946.  
Commuting  
Special rules for qualified section 179 real property. You  
can elect to treat certain qualified real property placed in  
service during the tax year as section 179 property. See  
Part I, later, for information on how to make this election. If the  
Generally, commuting is defined as travel between your  
home and a work location. However, travel that meets any of  
the following conditions is not commuting.  
2
Instructions for Form 4562 (2023)  
           
You have at least one regular work location away from your  
An amended return filed within the time prescribed by law  
home and the travel is to a temporary work location in the  
same trade or business, regardless of the distance.  
Generally, a temporary work location is one where your  
employment is expected to last 1 year or less. See Pub. 463  
for details.  
for the applicable tax year. The election made on an  
amended return must specify the item of section 179  
property to which the election applies and the part of the cost  
of each such item to be taken into account. The amended  
return must also include any resulting adjustments to taxable  
income.  
The travel is to a temporary work location outside the  
metropolitan area where you live and normally work.  
Election for certain qualified section 179 real  
property. You can elect to expense certain qualified real  
property that you first placed in service as section 179  
property for tax years beginning in 2023. For more  
information, see Election above.  
Revocation. The election (or any specification made in the  
election) can be revoked without obtaining IRS approval by  
filing an amended return. The amended return must be filed  
within the time prescribed by law for the applicable tax year.  
The amended return must include any resulting adjustments  
to taxable income or to the tax liability (for example, allowable  
depreciation in that tax year for the item of section 179  
property to which the revocation pertains). For more  
information and examples, see Regulations sections  
1.179-5(c)(3) and (c)(4). Once made, the revocation is  
irrevocable.  
Your home is your principal place of business for purposes  
of deducting expenses for business use of your home and  
the travel is to another work location in the same trade or  
business, regardless of whether that location is regular or  
temporary and regardless of distance.  
Alternative Minimum Tax (AMT)  
Depreciation may be an adjustment for the AMT. However, no  
adjustment applies in several instances. See Form 6251,  
Alternative Minimum Tax—Individuals; Schedule I (Form  
1041), Alternative Minimum Tax—Estates and Trusts; and the  
related instructions.  
Recordkeeping  
Except for Part V (relating to listed property), the IRS does  
not require you to submit detailed information with your return  
on the depreciation of assets placed in service in previous  
tax years. However, the information needed to compute your  
depreciation deduction (basis, method, etc.) must be part of  
your permanent records.  
If you elect to expense section 179 property, you  
must reduce the amount on which you figure your  
!
CAUTION  
depreciation or amortization deduction (including any  
special depreciation allowance) by the section 179 expense  
deduction.  
You may use the Depreciation Worksheet, later, to  
assist you in maintaining depreciation records.  
TIP  
Line 1  
However, the worksheet is designed only for federal  
income tax purposes. You may need to keep additional  
records for accounting and state income tax purposes.  
Generally, the maximum section 179 expense deduction is  
$1,160,000 for section 179 property (including qualified  
section 179 real property) placed in service during the tax  
year beginning in 2023.  
Specific Instructions  
You can use Worksheet 1 to assist you in determining  
the amount to enter on line 1.  
Part I. Election To Expense Certain  
Property Under  
TIP  
Recapture rule. If the section 179 property is not used  
predominantly (more than 50%) in your trade or business at  
any time before the end of the property's recovery period, the  
benefit of the section 179 expense deduction must be  
reported as “other income” on your return.  
Section 179  
Note. An estate or trust cannot make this election.  
If any qualified section 179 disaster assistance property  
ceases to be used in the applicable federally declared  
disaster area in any year after you claim the increased  
section 179 expense deduction for that property, the benefit  
of the increased section 179 expense deduction must be  
reported as “other income” on your return. Similar rules apply  
if qualified Liberty Zone property ceases to be used in the  
Liberty Zone, if qualified section 179 GO Zone property  
ceases to be used in the GO Zone, if qualified section 179  
Recovery Assistance property ceases to be used in the  
Recovery Assistance area, if qualified empowerment zone  
property ceases to be used in an empowerment zone by an  
enterprise zone business, or if qualified renewal property  
ceases to be used in a renewal community by a renewal  
community business in any year after you claim the increased  
section 179 expense deduction.  
You can elect to expense part or all of the cost of section  
179 property (defined earlier) that you placed in service  
during the tax year and used predominantly (more than 50%)  
in your trade or business.  
However, for taxpayers other than a corporation, this  
election does not apply to any section 179 property you  
purchased and leased to others unless:  
You manufactured or produced the property; or  
The term of the lease is less than 50% of the property's  
class life and, for the first 12 months after the property is  
transferred to the lessee, the deductions related to the  
property allowed to you as trade or business expenses  
(except rents and reimbursed amounts) are more than 15%  
of the rental income from the property.  
Election. You must make the election on Form 4562 filed  
with either:  
Line 2  
The original return you file for the tax year the property was  
placed in service (whether or not you file your return on time),  
or  
Enter the total cost of all section 179 property you placed in  
service during the tax year (including the total cost of  
3
Instructions for Form 4562 (2023)  
               
Keep for Your Records  
Worksheet 1. Worksheet for Lines 1, 2, and 3  
Maximum section 179 limitation calculation.  
1.* Enter total cost of section 179 property (including qualified section 179 real property) placed in service during the tax year  
beginning in 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2. The maximum section 179 deduction limitation for 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
3. Enter the smaller of line 1 or line 2 here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4. Enter the amount from line 3 here and on Form 4562, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Maximum threshold cost of section 179 property before reduction in limitation calculation.  
$1,160,000  
$2,890,000  
5. Enter the amount from line 1 here and on Form 4562, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6. Base maximum threshold cost of section 179 property before reduction in limitation for 2023. Enter this amount on Form  
4562, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Maximum elected cost for Form 4562, lines 6 and 7, column (c).  
7. Enter the smaller of line 1 or line 4. The total amount you enter on Form 4562, lines 6 and 7, column (c), cannot  
exceed this amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
* For line 1 of this worksheet, include the total amount of eligible section 179 property (including qualified section 179 real property), not just the amount for which you are  
making the election. See the instructions for line 2.  
qualified real property that you elect to treat as section 179  
property). Also, include the cost of the following.  
Column (a)—Description of property. Enter a brief  
description of the property you elect to expense (for example,  
truck, office furniture, qualified improvement property, roof,  
etc.).  
Column (b)—Cost (business use only). Enter the cost of  
the property. If you acquired the property through a trade-in,  
do not include any carryover basis of the property traded in.  
Include only the excess of the cost of the property over the  
value of the property traded in.  
Any listed property from Part V.  
Any property placed in service by your spouse, even if you  
are filing a separate return. This includes qualified section  
179 real property that your spouse made the election to treat  
as section 179 property for 2023.  
Line 3  
The amount of section 179 property for which you can make  
the election is limited to the maximum dollar amount on  
line 1. This amount is reduced if the cost of all section 179  
property placed in service in 2023 is more than $2,890,000.  
Column (c)—Elected cost. Enter the amount you elect to  
expense. You can depreciate the amount you do not  
expense. See the line 19 and line 20 instructions.  
To report your share of a section 179 expense deduction  
from a partnership or an S corporation, enter “from  
Schedule K-1 (Form 1065)” or “from Schedule K-1 (Form  
1120-S)” across columns (a) and (b).  
For a partnership, these limitations apply to the  
partnership and each partner. For an S corporation, these  
limitations apply to the S corporation and each shareholder.  
For a controlled group, all component members are treated  
as one taxpayer.  
Line 7  
Line 5  
Enter the amount that you elected to expense for listed  
property (defined earlier) on line 29 here. For more  
information, see Part V—Listed Property, later.  
If line 5 is zero, you cannot elect to expense any section 179  
property. In this case, skip lines 6 through 11, enter zero on  
line 12, and enter the carryover of any disallowed deduction  
from 2019 (which does not include amounts attributable to  
qualified section 179 real property) on line 13.  
Line 10  
The carryover of disallowed deduction from 2022 is the  
amount of section 179 property, if any, you elected to  
expense in previous years that was not allowed as a  
deduction because of the business income limitation. If you  
filed Form 4562 for 2022, enter the amount from line 13 of  
your 2022 Form 4562.  
earlier.  
If you are married filing separately, you and your spouse  
must allocate the dollar limitation for the tax year. To do so,  
multiply the total limitation that you would otherwise enter on  
line 5 by 50% (0.50), unless you both elect a different  
allocation. If you both elect a different allocation, multiply the  
total limitation by the percentage elected. The sum of the  
percentages you and your spouse elect must equal 100%.  
Line 11  
The total cost you can deduct is limited to your taxable  
income from the active conduct of a trade or business during  
the year. You are considered to actively conduct a trade or  
business only if you meaningfully participate in its  
Do not enter on line 5 more than your share of the total  
dollar limitation.  
management or operations. A mere passive investor is not  
considered to actively conduct a trade or business.  
Line 6  
Note. If you have to apply another Code section that has a  
Do not include any listed property on line 6. Enter the elected  
section 179 cost of listed property in column (i) of line 26.  
limitation based on taxable income, see Pub. 946 for rules on  
4
Instructions for Form 4562 (2023)  
     
how to apply the business income limitation for the section  
179 expense deduction.  
Certain qualified property acquired after September  
27, 2017. Certain qualified property (defined below)  
acquired after September 27, 2017, and placed in service  
after December 31, 2022, and before January 1, 2024 (other  
than property with a long production period and certain  
aircraft), is limited to a special depreciation allowance of 80%  
of the depreciable basis of the property. Property with a long  
production period and certain aircraft acquired after  
September 27, 2017, and placed in service before January 1,  
2024, is eligible for a special depreciation allowance of 100%  
of the depreciable basis of the property.  
The special depreciation allowance for certain qualified  
property (other than certain long production period property  
and certain aircraft) placed in service after December 31,  
2023, and before January 1, 2025, is limited to 60% of the  
depreciable basis of the property. Property with a long  
production period and certain aircraft placed in service after  
December 31, 2023, and before January 1, 2025, is limited to  
a special depreciation allowance of 80% of the depreciable  
basis of the property.  
Individuals. Enter the smaller of line 5 or the total taxable  
income from any trade or business you actively conducted,  
computed without regard to any section 179 expense  
deduction, the deduction for one-half of self-employment  
taxes under section 164(f), or any net operating loss  
deduction. Also, include all wages, salaries, tips, and other  
compensation you earned as an employee (from Form 1040,  
line 1). Do not reduce this amount by unreimbursed  
employee business expenses. If you are married filing a joint  
return, combine the total taxable incomes for you and your  
spouse.  
Partnerships. Enter the smaller of line 5 or the partnership's  
total items of income and expense, described in section  
702(a), from any trade or business the partnership actively  
conducted (other than credits, tax-exempt income, the  
section 179 expense deduction, and guaranteed payments  
under section 707(c)).  
S corporations. Enter the smaller of line 5 or the  
corporation's total items of income and expense described in  
section 1366(a) from any trade or business the corporation  
actively conducted (other than credits, tax-exempt income,  
the section 179 expense deduction, and the deduction for  
compensation paid to the corporation's  
Qualified property is:  
Tangible property depreciated under MACRS with a  
recovery period of 20 years or less;  
Computer software defined in and depreciated under  
section 167(f)(1);  
Water utility property (see 25-year property, later); and  
Qualified film, television, and live theatrical productions, as  
shareholder-employees).  
defined in sections 181(d) and (e).  
Corporations other than S corporations. Enter the  
smaller of line 5 or the corporation's taxable income before  
the section 179 expense deduction, net operating loss  
deduction, and special deductions (excluding items not  
derived from a trade or business actively conducted by the  
corporation).  
Qualified property must also be placed in service before  
January 1, 2027 (or before January 1, 2028, for certain  
property with a long production period and for certain  
aircraft), and can be either new property or certain used  
property.  
See Pub. 946 for more information. Also, see section  
168(k) and Regulations sections 1.168(k)-2 and 1.1502-68.  
Qualified reuse and recycling property. Certain  
qualified reuse and recycling property (defined below) placed  
in service after August 31, 2008, is eligible for a 50% special  
depreciation allowance.  
Line 12  
The limitations on lines 5 and 11 apply to the taxpayer, and  
not to each separate business or activity. Therefore, if you  
have more than one business or activity, you may allocate  
your allowable section 179 expense deduction among them.  
Qualified reuse and recycling property includes any  
machinery and equipment (not including buildings or real  
estate), along with any appurtenance, that is used exclusively  
to collect, distribute, or recycle qualified reuse and recyclable  
materials. This includes software necessary to operate such  
equipment. See section 168(m)(3) for more information.  
To do so, enter “Summary” at the top of Part I of the  
separate Form 4562 you are completing for the total amounts  
from all businesses or activities. Do not complete the rest of  
that form. On line 12 of the Form 4562 you prepare for each  
separate business or activity, enter the amount allocated to  
the business or activity from the “Summary.” No other entry is  
required in Part I of the separate Form 4562 prepared for  
each business or activity.  
Qualified reuse and recycling property must also meet all  
of the following tests.  
The property must be depreciated under MACRS.  
The property must have a useful life of at least 5 years.  
You must have acquired the property by purchase after  
Part II. Special Depreciation  
Allowance and Other Depreciation  
Line 14  
For qualified property (defined below) placed in service  
during the tax year, you may be able to take an additional  
special depreciation allowance. The special depreciation  
allowance applies only for the first year the property is placed  
in service. The allowance is an additional deduction you can  
take after any section 179 expense deduction and before you  
figure regular depreciation under MACRS.  
Qualified property. You can take the special depreciation  
allowance for certain qualified property acquired after  
September 27, 2017, qualified reuse and recycling property,  
and certain plants bearing fruits and nuts.  
August 31, 2008. If a binding contract to acquire the property  
existed before September 1, 2008, the property does not  
qualify.  
The property must be placed in service after August 31,  
2008.  
The original use of the property must begin with you after  
August 31, 2008.  
For self-constructed property, special rules apply. See  
section 168(m)(2)(C).  
Qualified reuse and recycling property does not include  
rolling stock or other equipment used to transport reuse and  
recyclable materials or any property to which section 168(g)  
or (k) applies.  
5
Instructions for Form 4562 (2023)  
       
Certain plants bearing fruits and nuts. You can elect to  
claim an 80% special depreciation allowance for the adjusted  
basis of certain specified plants (defined later) bearing fruits  
and nuts planted or grafted after December 31, 2022, and  
before January 1, 2024. For certain specified plants bearing  
fruits and nuts planted or grafted after December 31, 2023,  
and before January 1, 2025, the special depreciation  
allowance is limited to 60% of the adjusted basis of the  
specified plants.  
Credit for employer-provided childcare facilities and  
services.  
Basis adjustment to investment credit property under  
section 50(c).  
Section 181 expense deduction.  
For additional credits and deductions that affect the  
depreciable basis, see section 1016. Also, see Pub. 946.  
Note. If you acquired qualified property through a like-kind  
exchange or involuntary conversion after September 27,  
2017, and the qualified property is new property, the  
carryover basis and any excess basis of the acquired  
property is eligible for the special depreciation allowance.  
A specified plant is:  
Any tree or vine that bears fruits or nuts, and  
Any other plant that will have more than one yield of fruits  
or nuts and generally has a preproductive period of more  
than 2 years from planting or grafting to the time it begins  
bearing fruits or nuts.  
Generally, a like-kind exchange after December 31, 2017,  
is an exchange of real property.  
If you acquired qualified property through a like-kind  
exchange or involuntary conversion after September 27,  
2017, and the qualified property is used property, only the  
excess basis of the acquired property is eligible for the  
special depreciation allowance.  
Any property planted or grafted outside the United States  
does not qualify as a specified plant.  
If you elect to claim the special depreciation allowance for  
any specified plant, the special depreciation allowance  
applies only for the tax year in which the plant is planted or  
grafted. The plant will not be treated as qualified property  
eligible for the special depreciation allowance in the  
subsequent tax year in which it is placed in service.  
If you take the special depreciation allowance, you  
must reduce the amount on which you figure your  
!
CAUTION  
regular depreciation or amortization deduction by the  
amount deducted. Also, you will not have any AMT  
adjustment for depreciation for the qualified property.  
To make the election, attach a statement to your timely  
filed return (including extensions) indicating you are electing  
to apply section 168(k)(5) and identifying the specified  
plant(s) for which you are making the election. Once made,  
the election cannot be revoked without IRS consent.  
Exceptions. Qualified property does not include:  
Election out. You can elect, for any class of property, to not  
deduct any special depreciation allowance for all such  
property in such class placed in service during the tax year.  
To make an election, attach a statement to your timely filed  
return (including extensions) indicating the class of property  
for which you are making the election and that, for such class,  
you are not to claim any special depreciation allowance.  
The election must be made separately by each person  
owning qualified property (for example, by the partnership, by  
the S corporation, or for each member of a consolidated  
group by the common parent of the group).  
If you timely filed your return without making an election,  
you can still make the election by filing an amended return  
within 6 months of the due date of the return (excluding  
extensions). Enter “Filed pursuant to section 301.9100-2” on  
the amended return.  
Listed property used 50% or less in a qualified business  
use (as defined in the instructions for lines 26 and 27);  
Any property required to be depreciated under the  
Alternative Depreciation System (ADS) (that is, not property  
for which you elected to use ADS);  
Property placed in service, or planted or grafted, as  
applicable, and disposed of in the same tax year;  
Property converted from business or income-producing  
use to personal use in the same tax year it is acquired;  
Property described in section 168(k)(9)(A) or 168(K)(9)(B);  
or  
Property for which you elected not to claim any special  
depreciation allowance.  
In addition, qualified second generation biofuel plant  
property does not include the following.  
Once made, the election cannot be revoked without IRS  
consent.  
Any tax-exempt bond financed property under section 103.  
Any property for which a deduction was taken under  
Note. If you elect to not have any special depreciation  
allowance apply, the property placed in service during the tax  
year will not be subject to an AMT adjustment for  
depreciation.  
section 179C for certain qualified refinery property.  
Other bonus depreciation property to which section 168(k)  
applies.  
See sections 168(k) and 168(m) for additional information.  
Recapture. When you dispose of property for which you  
claimed a special depreciation allowance, any gain on the  
disposition is generally recaptured (included in income) as  
ordinary income up to the amount of the depreciation  
previously allowed or allowable for the property, including the  
special depreciation allowance. For more information, see  
MACRS recapture, later. If qualified GO Zone property  
(including specified GO Zone property) ceases to be  
qualified GO Zone property, if qualified Recovery Assistance  
property ceases to be qualified Recovery Assistance  
property, if qualified cellulosic biomass ethanol plant property  
ceases to be qualified cellulosic biomass ethanol plant  
property, if qualified second generation biofuel plant property  
ceases to be qualified second generation biofuel plant  
property, or if qualified disaster assistance property ceases to  
Also, see Pub. 946.  
How to figure the allowance. Figure the special  
depreciation allowance by multiplying the depreciable basis  
of the property by the applicable percentage.  
To figure the depreciable basis, subtract from the  
business/investment portion of the cost or other basis of the  
property any credits and deductions allocable to the property.  
The following are examples of some credits and deductions  
that reduce the depreciable basis.  
Section 179 expense deduction.  
Deduction for removal of barriers to the disabled and the  
elderly.  
Disabled access credit.  
Enhanced oil recovery credit.  
6
Instructions for Form 4562 (2023)  
       
be qualified disaster assistance property in any year after the  
year you claim the special depreciation allowance, the excess  
benefit you received from claiming the special depreciation  
allowance must be recaptured as ordinary income. For  
information on depreciation recapture, see Pub. 946. Also,  
see Notice 2008-25, 2008-9 I.R.B. 484, available at  
IRS.gov/irb/2008-09_IRB/ar10.html, for additional guidance  
on recapture of qualified GO Zone property.  
1. Computer software. Use the straight line method over  
36 months. A longer period may apply to software leased  
under a lease agreement entered into after March 12, 2004,  
to a tax-exempt organization, governmental unit, or foreign  
person or entity (other than a partnership). See section 167(f)  
(1)(C).  
If you elect the section 179 expense deduction or  
take the special depreciation allowance for qualified  
!
CAUTION  
computer software, you must reduce the amount on  
Line 15  
which you figure your regular depreciation deduction by the  
amount deducted.  
Report on this line depreciation for property that you elect to  
depreciate under the unit-of-production method or any other  
method not based on a term of years (other than the  
retirement-replacement-betterment method).  
2. Any right to receive tangible property or services under  
a contract or granted by a governmental unit (not acquired as  
part of a business).  
Attach a separate sheet showing:  
3. Any interest in a patent or copyright not acquired as  
A description of the property and the depreciation method  
part of a business.  
you elect that excludes the property from MACRS or ACRS;  
and  
4. Residential mortgage servicing rights. Use the straight  
line method over 108 months.  
5. Other intangible assets with a limited useful life that  
cannot be estimated with reasonable accuracy. Generally,  
use the straight line method over 15 years. See Regulations  
section 1.167(a)-3(b) for details and exceptions.  
The depreciable basis (cost or other basis reduced, if  
applicable, by salvage value, any section 179 expense  
deduction, deduction for removal of barriers to the disabled  
and the elderly, disabled access credit, enhanced oil  
recovery credit, credit for employer-provided childcare  
facilities and services, any special depreciation allowance,  
and any other applicable deduction or credit).  
Prior years' depreciation, plus current year's  
depreciation, can never exceed the depreciable basis  
!
For additional credits and deductions that may affect the  
depreciable basis, see section 1016. Also, see section 50(c)  
to determine the basis adjustment for investment credit  
property.  
CAUTION  
of the property.  
Part III. MACRS Depreciation  
The term “Modified Accelerated Cost Recovery System”  
(MACRS) includes the General Depreciation System (GDS)  
and the Alternative Depreciation System (ADS). Generally,  
MACRS is used to depreciate any tangible property placed in  
service after 1986. However, MACRS does not apply to films,  
videotapes, and sound recordings. For more details and  
exceptions, see Pub. 946.  
Line 16  
Enter the total depreciation you are claiming for the following  
types of property (except listed property and property subject  
to a section 168(f)(1) election).  
ACRS property (pre-1987 rules). See Pub. 534.  
Property placed in service before 1981.  
Certain public utility property which does not meet certain  
normalization requirements.  
Section A  
Line 17  
Certain property acquired from related persons.  
Property acquired in certain nonrecognition transactions.  
Certain sound recordings, movies, and videotapes.  
Property depreciated under the income forecast method.  
For tangible property placed in service in tax years beginning  
before 2023 and depreciated under MACRS (“MACRS  
asset”), enter the deductions for the current year. To figure  
the deductions, see the instructions for line 19, column (g).  
The use of the income forecast method is limited to motion  
picture films, videotapes, sound recordings, copyrights,  
books, and patents.  
If you take the special depreciation allowance for a  
Note. If you dispose of a portion of a MACRS asset and are  
required to (or elect to) take the basis of the asset into  
account, you must reduce the basis and depreciation reserve  
of the MACRS asset by the basis and depreciation reserve  
attributable to the disposed portion as of the first day of the  
tax year before you compute the depreciation deduction for  
the current year. To figure the depreciation deduction for the  
remaining MACRS asset and the disposed portion, see the  
instructions for line 19, column (g). For more information, see  
Regulations section 1.168(i)-8.  
qualified film, television, or live theatrical production,  
!
CAUTION  
you must reduce the amount on which you figure your  
regular depreciation deduction by the amount deducted.  
If you use the income forecast method for any property  
placed in service after September 13, 1995, you may owe  
interest or be entitled to a refund for the 3rd and 10th tax  
years beginning after the tax year the property was placed in  
service. For details, see Form 8866, Interest Computation  
Under the Look-Back Method for Property Depreciated  
Under the Income Forecast Method.  
Line 18  
For property placed in service in the current tax year, you  
can either include certain participations and residuals in the  
adjusted basis of the property or deduct these amounts when  
paid. See section 167(g)(7). You cannot use this method to  
depreciate any amortizable section 197 intangible. For more  
details, see the instructions for section 197 intangibles, later.  
To simplify the computation of MACRS depreciation, you can  
elect to group assets into one or more general asset  
accounts. The assets in each general asset account are  
depreciated as a single asset.  
Each general asset account must include only assets that  
were placed in service during the same tax year and that  
Intangible property, other than section 197 intangibles,  
including the following.  
7
Instructions for Form 4562 (2023)  
           
have the same depreciation method, recovery period, and  
convention. However, an asset cannot be included in a  
general asset account if the asset is used both for personal  
purposes and business/investment purposes.  
When an asset in an account is disposed of, the amount  
realized must generally be recognized as ordinary income.  
The unadjusted depreciable basis and depreciation reserve  
of the general asset account are not affected as a result of a  
disposition.  
Generally, a like-kind exchange after December 31,  
2017, is an exchange of real property.  
!
CAUTION  
Lines 19a Through 19i  
Use lines 19a through 19i only for assets placed in service  
during the tax year beginning in 2023 and depreciated under  
GDS, except for automobiles and other listed property (which  
are reported in Part V).  
Column (a)—Classification of property. Sort the property  
you acquired and placed in service during the tax year  
beginning in 2023 according to its classification (3-year  
property, 5-year property, etc.) as shown in column (a) of  
lines 19a through 19i. The classifications for some property  
are shown below. For property not shown, see Determining  
Special rules apply to passenger automobiles, assets  
generating foreign source income, assets converted to  
personal use, certain asset dispositions, and like-kind  
exchanges or involuntary conversions of property in a general  
asset account. For more details, see Regulations section  
1.168(i)-1 (as in effect for tax years beginning on or after  
January 1, 2014).  
To make the election, check the box on line 18. You must  
make the election on your return filed no later than the due  
date (including extensions) for the tax year in which the  
assets included in the general asset account were placed in  
service. Once made, the election is irrevocable and applies  
to the tax year for which the election is made and all later tax  
years.  
3-year property includes the following.  
A race horse that is more than 2 years old at the time.  
Any horse (other than a race horse) that is more than 12  
years old at the time it is placed in service.  
Any qualified rent-to-own property (as defined in section  
168(i)(14)).  
5-year property includes the following.  
Automobiles.  
For more information on depreciating property in a general  
asset account, see Pub. 946.  
Light general purpose trucks.  
Typewriters, calculators, copiers, and duplicating  
equipment.  
Section B  
Any semi-conductor manufacturing equipment.  
Any qualified technological equipment.  
Property acquired in a like-kind exchange or involuntary  
conversion. Generally, you must depreciate the carryover  
basis of property you acquire in a like-kind exchange or  
involuntary conversion during the current tax year over the  
remaining recovery period of the property exchanged or  
involuntarily converted. Use the same depreciation method  
and convention that was used for the exchanged or  
involuntarily converted property. Treat any excess basis as  
newly placed in service property. Figure depreciation  
separately for the carryover basis and the excess basis, if  
any.  
These rules apply only to acquired property with the same  
or a shorter recovery period or the same or a more  
accelerated depreciation method than the property  
exchanged or involuntarily converted. For additional rules,  
see Regulations section 1.168(i)-6(c) and Pub. 946.  
Election out. Instead of using the above rules, you can  
elect, for depreciation purposes, to treat the adjusted basis of  
the exchanged property as if it was disposed of at the time of  
the exchange or involuntary conversion. Generally, treat the  
carryover basis and excess basis, if any, for the acquired  
property as if placed in service on the date you acquired it.  
The depreciable basis of the new property is the adjusted  
basis of the exchanged or involuntarily converted property  
plus any additional amount paid for it. See Regulations  
section 1.168(i)-6(i).  
To make the election, figure the depreciation deduction for  
the new property in Part III. For listed property, use Part V.  
Attach a statement indicating “Election made under section  
1.168(i)-6(i)” for each property involved in the exchange or  
involuntary conversion. The election must be made  
separately by each person acquiring replacement property  
(for example, by the partnership, by the S corporation, or by  
the common parent of a consolidated group). The election  
must be made on your timely filed return (including  
extensions). Once made, the election cannot be revoked  
without IRS consent.  
Any section 1245 property used in connection with  
research and experimentation.  
Certain energy property specified in section 168(e)(3)(B)  
(vi).  
Appliances, carpets, furniture, etc., used in a rental real  
estate activity.  
Any new machinery or equipment (other than any grain  
bin, cotton ginning asset, fence, or other land improvement)  
used in a farming business and placed in service after 2017,  
in tax years ending after 2017. The original use of the  
property must begin with you after 2017.  
7-year property includes the following.  
Office furniture and equipment.  
Railroad track.  
Any motorsports entertainment complex (as defined in  
section 168(i)(15)).  
Any natural gas gathering line (as defined in section 168(i)  
(17)) placed in service after April 11, 2005, the original use of  
which begins with you after April 11, 2005, and is not under  
self-construction or subject to a binding contract in existence  
before April 12, 2005. Also, no AMT adjustment is required.  
Any used agricultural machinery and equipment placed in  
service after 2017, grain bins, cotton ginning assets, or  
fences used in a farming business (but no other land  
improvements).  
Any property that does not have a class life and is not  
otherwise classified.  
10-year property includes the following.  
Vessels, barges, tugs, and similar water transportation  
equipment.  
Any single purpose agricultural or horticultural structure  
(see section 168(i)(13)).  
Any tree or vine bearing fruits or nuts.  
Any qualified smart electric meter property.  
Any qualified smart electric grid system property.  
8
Instructions for Form 4562 (2023)  
         
15-year property includes the following.  
Any municipal wastewater treatment plant.  
Any telephone distribution plant and comparable  
Column (b)—Month and year placed in service. For lines  
19h and 19i, enter the month and year you placed the  
property in service. If you converted property held for  
personal use to use in a trade or business or for the  
production of income, treat the property as being placed in  
service on the conversion date.  
Column (c)—Basis for depreciation (business/invest-  
ment use only). To find the basis for depreciation, multiply  
the cost or other basis of the property by the percentage of  
business/investment use. From that result, subtract any  
credits and deductions allocable to the property. The  
following are examples of some credits and deductions that  
reduce the basis for depreciation.  
equipment used for 2-way exchange of voice and data  
communications.  
Any section 1250 property that is a retail motor fuels outlet  
(whether or not food or other convenience items are sold  
there).  
Initial clearing and grading land improvements for gas  
utility property.  
Certain electric transmission property specified in section  
168(e)(3)(E)(v) placed in service after April 11, 2005, the  
original use of which begins with you after April 11, 2005, and  
is not under self-construction or subject to a binding contract  
in existence before April 12, 2005.  
Section 179 expense deduction.  
Deduction under section 179D for certain energy efficient  
Qualified improvement property, as defined in section  
commercial building property.  
168(e)(6), placed in service by you after December 31, 2017.  
Deduction for removal of barriers to the disabled and the  
20-year property includes the following.  
elderly.  
Farm buildings (other than single purpose agricultural or  
Disabled access credit.  
horticultural structures).  
Enhanced oil recovery credit.  
Municipal sewers not classified as 25-year property.  
Credit for alternative fuel vehicle refueling property.  
Credit for employer-provided childcare facilities and  
Initial clearing and grading land improvements for electric  
utility transmission and distribution plants.  
services.  
25-year property is water utility property, which is:  
Any special depreciation allowance included on line 14.  
Property that is an integral part of the gathering, treatment,  
Any basis adjustment for investment credit property. See  
or commercial distribution of water that, without regard to this  
classification, would be 20-year property; and  
section 50(c).  
Any basis adjustment for advanced manufacturing  
Municipal sewers.  
investment credit property. See section 48D(d)(5).  
This classification does not apply to property placed in  
service under a binding contract in effect at all times since  
June 9, 1996.  
For additional credits and deductions that affect the  
depreciable basis, see section 1016 and Pub. 946.  
Column (d)—Recovery period. Determine the recovery  
period from the following table. See Pub. 946 for more  
information on the recovery period for MACRS property.  
Residential rental property is a building in which 80% or  
more of the total rent is from dwelling units.  
Nonresidential real property is any real property that is  
neither residential rental property nor property with a class  
life of less than 27.5 years.  
Recovery Period for Most Property  
50-year property includes any improvements necessary  
to construct or improve a roadbed or right-of-way for railroad  
track that qualifies as a railroad grading or tunnel bore under  
section 168(e)(4).  
There is no separate line to report 50-year property.  
Therefore, attach a statement showing the same information  
as required in columns (a) through (g). Include the deduction  
in the line 22 “Total” and enter “See attachment” in the bottom  
margin of the form.  
Classification  
3-year property  
5-year property  
7-year property  
10-year property  
15-year property  
20-year property  
25-year property  
Recovery period  
3 yrs.  
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5 yrs.  
7 yrs.  
10 yrs.  
15 yrs.  
20 yrs.  
25 yrs.  
Residential rental property  
Nonresidential real property  
27.5 yrs.  
39 yrs.  
Railroad gradings and tunnel bores  
50 yrs.  
Determining the classification. If your depreciable  
property is not listed above, determine the classification as  
follows.  
Column (e)—Convention. The applicable convention  
determines the portion of the tax year for which depreciation  
is allowable during a year property is either placed in service  
or disposed of. There are three types of conventions. To  
select the correct convention, you must know the type of  
property and when you placed the property in service.  
Half-year convention. This convention applies to all  
property reported on lines 19a through 19g, unless the  
mid-quarter convention applies. It does not apply to  
residential rental property, nonresidential real property, and  
railroad gradings and tunnel bores. It treats all property  
placed in service (or disposed of) during any tax year as  
placed in service (or disposed of) on the midpoint of that tax  
year. Enter “HY” in column (e).  
1. Find the property's class life. See the Table of Class  
Lives and Recovery Periods in Pub. 946.  
2. Use the following table to find the classification in  
column (b) that corresponds to the class life of the property in  
column (a).  
(a)  
(b)  
Class life (in years)  
(See Pub. 946.)  
Classification  
4 or less  
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3-year property  
More than 4 but less than 10  
10 or more but less than 16  
16 or more but less than 20  
20 or more but less than 25  
5-year property  
7-year property  
10-year property  
15-year property  
20-year property  
Mid-quarter convention. If the total depreciable bases  
(before any special depreciation allowance) of MACRS  
property placed in service during the last 3 months of your  
25 or more  
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9
Instructions for Form 4562 (2023)  
             
tax year exceed 40% of the total depreciable bases of  
MACRS property placed in service during the entire tax year,  
the mid-quarter, instead of the half-year, convention generally  
applies.  
Water utility property, residential rental property,  
nonresidential real property, or any railroad grading or  
tunnel bore. The only applicable method is the straight line  
method.  
In determining whether the mid-quarter convention  
Column (g)—Depreciation deduction. To figure the  
depreciation deduction, you may use optional Tables A  
through E, which begin later. Multiply column (c) by the  
applicable rate from the appropriate table. See Pub. 946 for  
complete tables. If you disposed of the property during the  
current tax year, multiply the result by the applicable decimal  
amount from the tables in Step 3, later. Or, you may compute  
the deduction yourself by completing the following steps.  
Step 1. Determine the depreciation rate as follows.  
applies, do not take into account the following.  
Property that is being depreciated under a method other  
than MACRS.  
Any residential rental property, nonresidential real property,  
or railroad gradings and tunnel bores.  
Property that is placed in service and disposed of within  
the same tax year.  
The mid-quarter convention treats all property placed in  
service (or disposed of) during any quarter as placed in  
service (or disposed of) on the midpoint of that quarter.  
However, no depreciation is allowed under this convention for  
property that is placed in service and disposed of within the  
same tax year. Enter “MQ” in column (e).  
Mid-month convention. This convention applies only to  
residential rental property (line 19h), nonresidential real  
property (line 19i), and railroad gradings and tunnel bores. It  
treats all property placed in service (or disposed of) during  
any month as placed in service (or disposed of) on the  
midpoint of that month. Enter “MM” in column (e).  
If you are using the 200% or 150% declining balance  
method in column (f), divide the declining balance rate (use  
2.00 for 200 DB or 1.50 for 150 DB) by the number of years in  
the recovery period in column (d). For example, for property  
depreciated using the 200 DB method over a recovery period  
of 5 years, divide 2.00 by 5 for a rate of 40%. You must switch  
to the straight line rate in the first year that the straight line  
rate exceeds the declining balance rate.  
If you are using the straight line method, divide 1.00 by the  
remaining number of years in the recovery period as of the  
beginning of the tax year (but not less than 1). For example, if  
there are 61/2 years remaining in the recovery period as of the  
beginning of the year, divide 1.00 by 6.5 for a rate of 15.38%.  
Step 2. Multiply the percentage rate determined in Step 1  
by the property's unrecovered basis (basis for depreciation  
(as defined in column (c)) reduced by all prior years'  
depreciation.  
Column (f)—Method. Applicable depreciation methods are  
prescribed for each classification of property as follows.  
However, you can make an irrevocable election to use the  
straight line method for all property within a classification that  
is placed in service during the tax year. Enter “200 DB” for  
200% declining balance, “150 DB” for 150% declining  
balance, or “S/Lfor straight line.  
Step 3. For property placed in service or disposed of  
during the current tax year, multiply the result from Step 2 by  
the applicable decimal amount from the tables below (based  
on the convention shown in column (e)).  
3-, 5-, 7-, and 10-year property. Generally, the applicable  
method is the 200% declining balance method, switching to  
the straight line method in the first tax year that the straight  
line rate exceeds the declining balance rate.  
Half-year (HY) convention.  
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0.5  
Note. The straight line method is the only applicable method  
for trees and vines bearing fruits or nuts. The 150% declining  
balance method is the only applicable method for any  
Mid-quarter (MQ) convention  
Placed in service  
Placed  
Disposed  
of  
(or disposed of) during the: in service  
qualified smart electric meter or any qualified smart electric  
grid system property placed in service after October 3, 2008.  
1st quarter  
2nd quarter  
3rd quarter  
4th quarter  
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0.875  
0.625  
0.375  
0.125  
0.125  
0.375  
0.625  
0.875  
For 3-, 5-, 7-, or 10-year property eligible for the 200%  
declining balance method, you can make an irrevocable  
election to use the 150% declining balance method,  
switching to the straight line method in the first tax year that  
the straight line rate exceeds the declining balance rate. The  
election applies to all property within the classification for  
which it is made and that was placed in service during the tax  
year. You will not have an AMT adjustment for any property  
included under this election.  
For 3-, 5-, 7-, or 10-year property used in a farming  
business and placed in service after 2017, in tax years  
ending after 2017, the 150% declining balance method is no  
longer required. However, the 150% declining balance  
method will continue to apply to any 15- or 20-year property  
used in a farming business to which the straight line method  
does not apply or to property for which you elect the use of  
the 150% declining balance method.  
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Mid-month (MM) convention  
Placed in service  
(or disposed of) during the:  
Placed  
Disposed  
of  
in service  
0.9583  
0.8750  
0.7917  
0.7083  
0.6250  
0.5417  
0.4583  
0.3750  
0.2917  
0.2083  
0.1250  
0.0417  
1st month  
2nd month  
3rd month  
4th month  
5th month  
6th month  
7th month  
8th month  
9th month  
10th month  
11th month  
12th month  
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0.0417  
0.1250  
0.2083  
0.2917  
0.3750  
0.4583  
0.5417  
0.6250  
0.7083  
0.7917  
0.8750  
0.9583  
15- and 20-year property and property used in a  
farming business. The applicable method is the 150%  
declining balance method, switching to the straight line  
method in the first tax year that the straight line rate exceeds  
the declining balance rate. For 3-, 5-, 7-, and 10-year  
property used in a farming business and placed in service  
after 2017, see 3-, 5-, 7-, or 10-year property above.  
Short tax years. See Pub. 946 for rules on how to  
compute the depreciation deduction for property placed in  
service in a short tax year.  
10  
Instructions for Form 4562 (2023)  
     
Therefore, attach a statement showing the same information  
required in columns (a) through (g). Include the deduction in  
the line 22 “Total” and enter “See attachment” in the bottom  
margin of the form.  
Column (b)—Month and year placed in service. For  
residential rental property and 40-year property, enter the  
month and year placed in service or converted to use in a  
trade or business or for the production of income.  
Section C  
Lines 20a Through 20d  
Complete lines 20a through 20d for assets, other than  
automobiles and other listed property, placed in service only  
during the tax year beginning in 2023 and depreciated under  
ADS. Report on line 17 MACRS depreciation on assets  
placed in service in prior years.  
Column (c)—Basis for depreciation (business/invest-  
Under ADS, use the applicable depreciation method, the  
applicable recovery period, and the applicable convention to  
compute depreciation.  
ment use only). See the instructions for line 19, column (c).  
Column (d)—Recovery period. On line 20a, enter the  
property's class life.  
The following types of property must be depreciated under  
ADS.  
Column (e)—Convention. Under ADS, the applicable  
conventions are the same as those used under GDS. See the  
instructions for line 19, column (e).  
Column (g)—Depreciation deduction. Figure the  
depreciation deduction in the same manner as under GDS,  
except use the straight line method over the ADS recovery  
period and use the applicable convention.  
MACRS recapture. If you later dispose of property you  
depreciated using MACRS, any gain on the disposition is  
generally recaptured (included in income) as ordinary income  
up to the amount of the depreciation previously allowed or  
allowable for the property. Depreciation, for this purpose,  
includes any of the following amounts taken during the 2023  
tax year.  
Tangible property used predominantly outside the United  
States.  
Tax-exempt use property.  
Tax-exempt bond financed property.  
Imported property covered by an executive order of the  
President of the United States.  
Property used predominantly in a farming business and  
placed in service during any tax year in which you made an  
election under section 263A(d)(3) to not have the uniform  
capitalization rules of section 263A apply.  
Any nonresidential real property, residential rental property,  
or qualified improvement property held by an electing real  
property trade or business (as defined in section 163(j)(7)  
(B)).  
Any section 179 expense deduction claimed on the  
Any property that has a recovery period of 10 years or  
property.  
more under section 168(c) that is held by an electing farming  
business (as defined in section 163(j)(7)(C)).  
Any special depreciation allowance available for the  
property (unless you elected not to claim it).  
Instead of depreciating property under GDS (line 19), you  
can make an irrevocable election for any classification of  
property for any tax year to use ADS. For residential rental  
and nonresidential real property, you can make this election  
separately for each property. You make this election by  
completing line 20 of Form 4562.  
Column (a)—Classification of property. Use the following  
rules to determine the classification of the property under  
ADS.  
Under ADS, the depreciation deduction for most property  
is based on the property's class life. See section 168(g)(3) for  
special rules for determining the class life for certain property.  
See Pub. 946 for information on recovery periods for ADS  
and the Table of Class Lives and Recovery Periods.  
Use line 20a for all property depreciated under ADS,  
except property that does not have a class life, residential  
rental and nonresidential real property, water utility property,  
and railroad gradings and tunnel bores. Use line 20b for  
property that does not have a class life. Use line 20c for  
residential rental property. Use line 20d for nonresidential real  
property.  
Any deduction under section 179B for capital costs  
incurred in complying with Environmental Protection Agency  
sulfur regulations.  
There is no recapture for residential rental and  
nonresidential real property, unless that property is qualified  
property for which you claimed a special depreciation  
allowance (discussed earlier). For more information on  
depreciation recapture, see Pub. 946.  
Part IV. Summary  
Line 22  
A partnership or S corporation does not include any section  
179 expense deduction (line 12) on this line. Instead, any  
section 179 expense deduction is passed through separately  
to the partners and shareholders on the appropriate line of  
their Schedules K-1.  
Line 23  
If you are subject to the uniform capitalization rules of section  
263A, enter the increase in basis from costs you must  
capitalize. For a detailed discussion of who is subject to  
these rules, which costs must be capitalized, and allocation  
of costs among activities, see Regulations section 1.263A-1.  
Residential rental property. The ADS recovery period  
for residential rental property placed in service after 2017 is  
30 years. The ADS recovery period for residential rental  
property placed in service before January 1, 2018, is 30  
years if the property is held by an electing real property trade  
or business (as defined in section 163(j)(7)(B)) and section  
168(g)(1)(A), (B), (C), (D), or (E) did not apply to the property  
before January 1, 2018. Report depreciation for these assets  
on line 20c. For more information, see Pub. 946.  
Part V. Listed Property  
If you claim the standard mileage rate, actual vehicle  
expenses (including depreciation), or depreciation on other  
listed property, you must provide the information requested in  
Part V, regardless of the tax year the property was placed in  
service. However, if you file Form 2106, report this  
Water utility property and railroad gradings and  
tunnel bores. These assets are 50-year property under  
ADS. There is no separate line to report 50-year property.  
information on that form and not in Part V. Also, if you file  
Schedule C (Form 1040) and are claiming the standard  
11  
Instructions for Form 4562 (2023)  
                     
mileage rate or actual vehicle expenses (except  
depreciation), and you are not required to file Form 4562 for  
any other reason, report vehicle information in Part IV of  
Schedule C and not on Form 4562.  
For more information, including the definition of a 5%  
owner and related person and exceptions, see Pub. 946.  
Listed property recapture. If you used listed property more  
than 50% in a qualified business use in the year you placed  
the property in service, and used it 50% or less in a later year,  
you may have to include as income part of the depreciation,  
including the special depreciation allowance, deducted in  
prior years. Use Form 4797, Sales of Business Property, to  
figure the recapture amount.  
Column (a)—Type of property. List on a  
property-by-property basis all your listed property in the  
following order.  
Section A  
The section 179 expense deduction should be  
computed before calculating any special depreciation  
!
CAUTION  
allowance and/or regular depreciation deduction.  
See the instructions for line 26, column (i).  
Listed property used 50% or less in a qualified business  
use (as defined in the instructions for lines 26 and 27 below)  
does not qualify for the section 179 expense deduction or  
special depreciation allowance.  
1. Automobiles and other vehicles.  
2. Other listed property (computers and peripheral  
equipment placed in service before 2018, etc.).  
Line 25  
In column (a), list the makes and models of automobiles,  
and give a general description of other listed property.  
If you have more than five vehicles used 100% for  
business/investment purposes, you may group them by tax  
year. Otherwise, list each vehicle separately.  
Column (b)—Date placed in service. Enter the date the  
property was placed in service. If property held for personal  
use is converted to business/investment use, treat the  
property as placed in service on the date of conversion.  
Column (c)—Business/investment use percentage.  
Enter the percentage of business/investment use. For  
automobiles and other vehicles, determine this percentage  
by dividing the number of miles the vehicle is driven for trade  
or business purposes or for the production of income during  
the year (not to include any commuting mileage) by the total  
number of miles the vehicle is driven for all purposes. Treat  
vehicles used by employees as being used 100% for  
business/investment purposes if the value of personal use is  
included in the employees' gross income, or the employees  
reimburse the employer for the personal use. For more  
information, see Pub. 463.  
For other listed property (such as computers placed in  
service before 2018 or video equipment), allocate the use  
based on the most appropriate unit of time the property is  
actually used (rather than merely being available for use).  
If during the tax year you convert property used solely for  
personal purposes to business/investment use (or vice  
versa), figure the percentage of business/investment use only  
for the number of months you use the property in your  
business or for the production of income. Multiply that  
percentage by the number of months you use the property in  
your business or for the production of income, and divide the  
result by 12.  
If you placed in service certain qualified listed property during  
the tax year, you may be able to deduct the special  
depreciation allowance. This property includes certain  
qualified property acquired after September 27, 2017, and  
placed in service before January 1, 2027 (before January 1,  
2028, for certain aircraft). See the instructions for line 14 for  
the definition of qualified property and how to figure the  
deduction. This special depreciation allowance is included in  
the overall limit on depreciation and section 179 expense  
deduction for passenger automobiles. See the tables for  
limitations on passenger vehicles and trucks and vans, later.  
Enter on line 25 your total special depreciation allowance for  
all qualified listed property.  
Lines 26 and 27  
Use line 26 to figure depreciation for property used more than  
50% in a qualified business use. Use line 27 to figure the  
depreciation for property used 50% or less in a qualified  
business use. Also, see Limits for passenger automobiles,  
later.  
If you acquired the property through a trade-in,  
special rules apply for determining the basis,  
!
CAUTION  
recovery period, depreciation method, and  
convention. For more details, see Property acquired in a  
like-kind exchange or involuntary conversion, earlier. Also,  
see Regulations section 1.168(i)-6(d)(3).  
Qualified business use. To determine whether to use  
line 26 or line 27 to report your listed property, you must first  
determine the percentage of qualified business use for each  
property. Generally, a qualified business use is any use in  
your trade or business. However, it does not include any of  
the following.  
Investment use.  
Leasing the property to a 5% owner or related person.  
The use of the property as compensation for services  
Column (d)—Cost or other basis. Enter the property's  
actual cost (including sales tax) or other basis (unadjusted for  
prior years' depreciation). If you traded in old property, see  
conversion, earlier.  
For a vehicle, reduce your basis by any qualified electric  
vehicle credit you claimed for property placed in service  
before January 1, 2007, or by any alternative motor vehicle  
credit allowed.  
If you converted the property from personal use to  
business/investment use, your basis for depreciation is the  
smaller of the property's adjusted basis or its fair market  
value on the date of conversion.  
performed by a 5% owner or related person.  
The use of the property as compensation for services  
performed by any person (who is not a 5% owner or related  
person), unless an amount is included in that person's  
income for the use of the property and, if required, income  
tax was withheld on that amount.  
Excluding these uses above from the numerator,  
determine your percentage of qualified business use similar  
to the method used to figure the business/investment use  
percentage in column (c). Your percentage of qualified  
business use may be smaller than the business/investment  
use percentage.  
12  
Instructions for Form 4562 (2023)  
             
depreciation allowance) that is used 60% for business/  
investment, the limit is $7,320 ($12,200 x 60% (0.60)).  
Column (e)—Basis for depreciation (business/invest-  
ment use only). Multiply column (d) by the percentage in  
column (c). From that result, subtract any section 179  
expense deduction, any special depreciation allowance, any  
credit for employer-provided childcare facilities and services,  
and half of any investment credit taken before 1986 (unless  
you claimed the reduced credit). For automobiles and other  
listed property placed in service after 1985 (that is, transition  
property), reduce the depreciable basis by the entire  
investment credit.  
Column (f)—Recovery period. Enter the recovery period.  
For property placed in service after 1986 and used more than  
50% in a qualified business use, use the table in the  
instructions for line 19, column (d). For property placed in  
service after 1986 and used 50% or less in a qualified  
business use, depreciate the property using the straight line  
method over its ADS recovery period. The ADS recovery  
period is 5 years for automobiles and computers.  
Column (g)—Method/convention. Enter the method and  
convention used to figure your depreciation deduction. See  
the instructions for line 19, columns (e) and (f). Enter “200  
DB,” “150 DB,” or “S/Lfor the depreciation method, and “HY,”  
“MM,or “MQ” for half-year, mid-month, or mid-quarter  
conventions, respectively. For property placed in service  
before 1987, enter “PRE” if you used the prescribed  
percentages under ACRS. If you elected an alternate  
percentage or if you are required to depreciate the property  
using the straight line method, enter “S/L.”  
For purposes of the limits for passenger automobiles, the  
following apply.  
Passenger automobiles are 4-wheeled vehicles  
manufactured primarily for use on public roads that are rated  
at 6,000 pounds unloaded gross vehicle weight or less (for a  
truck or van, gross vehicle weight is substituted for unloaded  
gross vehicle weight).  
Electric passenger automobiles are vehicles produced by  
an original equipment manufacturer and designed to run  
primarily on electricity, placed in service after August 5, 1997,  
and before January 1, 2007.  
Exception. The following vehicles are not considered  
passenger automobiles.  
An ambulance, hearse, or combination ambulance-hearse  
used in your trade or business.  
A vehicle used in your trade or business of transporting  
persons or property for compensation or hire.  
Any truck or van placed in service after July 6, 2003, that is  
a qualified nonpersonal use vehicle. A truck or van is a  
qualified nonpersonal use vehicle only if it has been specially  
modified with the result that it is not likely to be used more  
than a de minimis amount for personal purposes. For  
example, a van that has only a front bench for seating, in  
which permanent shelving has been installed, that constantly  
carries merchandise or equipment, and that has been  
specially painted with advertising or the company's name, is  
a vehicle not likely to be used more than a de minimis amount  
for personal purposes.  
Column (h)—Depreciation deduction. See Limits for  
passenger automobiles, later, before entering an amount in  
column (h).  
Exception for leasehold property. The business use  
requirement and the limits for passenger automobiles  
generally do not apply to passenger automobiles leased or  
held by anyone regularly engaged in the business of leasing  
passenger automobiles.  
For property used more than 50% in a qualified business  
use (line 26) and placed in service after 1986, figure column  
(h) by following the instructions for line 19, column (g). If  
placed in service before 1987, multiply column (e) by the  
applicable percentage given in Pub. 534 for ACRS property. If  
the recovery period for an automobile ended before your tax  
year beginning in 2023, enter your unrecovered basis, if any,  
in column (h).  
For property used 50% or less in a qualified business use  
(line 27) and placed in service after 1986, figure column (h)  
by dividing the amount in column (e) by the amount in column  
(f). Use the same conventions as discussed in the  
instructions for line 19, column (e). The amount in column (h)  
cannot exceed the property's unrecovered basis. If the  
recovery period for an automobile ended before your tax year  
beginning in 2023, enter your unrecovered basis, if any, in  
column (h).  
For a detailed discussion on passenger automobiles,  
including leased automobiles, see Pub. 463.  
Table 1—Limits for Passenger Automobiles  
(including trucks and vans) Acquired Before  
September 28, 2017, and Placed in Service Before  
2020  
AND the  
number of tax years in  
which this automobile  
has been  
THEN the  
limit on your  
depreciation and  
section 179 expense  
deduction is:  
IF you placed your  
automobile in service:  
in service is:  
Jan. 1–Dec. 31, 2018  
Jan. 1–Dec. 31, 2019  
3
$9,600  
$5,760  
$9,700  
$5,760  
4 or more  
3
For property placed in service before 1987 that was  
disposed of during the year, enter zero.  
4 or more  
Limits for passenger automobiles. The depreciation  
deduction, including the section 179 expense deduction and  
special depreciation allowance, for passenger automobiles is  
limited. For any passenger automobile (including an electric  
passenger automobile) you list on line 26 or line 27, the total  
of columns (h) and (i) on line 26 or 27 and column (h) on  
line 25 for that automobile cannot exceed the applicable limit  
shown in Table 1, 2, 3, or 4. If the business/investment use  
percentage in column (c) for the automobile is less than  
100%, you must reduce the applicable limit to an amount  
equal to the limit multiplied by that percentage. For example,  
for an automobile (including a truck or van) placed in service  
in 2023 (for which you elect not to claim any special  
13  
Instructions for Form 4562 (2023)  
                 
Table 2—Limits for Passenger Automobiles  
(including trucks and vans) Acquired After  
September 27, 2017, and Placed in Service Before  
2024  
Column (i)—Elected section 179 cost. Enter the amount  
you elect to expense for section 179 property used more than  
50% in a qualified business use (subject to the limits for  
passenger automobiles). Refer to the instructions for Part I to  
determine if the property qualifies under section 179.  
You cannot elect to expense more than $28,900 of the  
cost of any SUVs and certain other vehicles placed in service  
during the tax year. This rule applies to any 4-wheeled  
vehicle primarily designed or used to carry passengers over  
public streets, roads, or highways, that is rated at more than  
6,000 pounds gross vehicle weight and not more than 14,000  
pounds gross vehicle weight. However, the $28,900 limit  
does not apply to any vehicle:  
AND the  
number of  
tax years in  
which this  
THEN the limit on  
your depreciation  
and section 179  
expense deduction  
is:  
IF you placed  
your automobile  
in service:  
automobile has  
been in  
service is:  
3
ꢀ$9,600  
$5,760  
Jan. 1–Dec. 31, 2018  
Jan. 1–Dec. 31, 2019  
Jan. 1–Dec. 31, 2020  
Jan. 1–Dec. 31, 2021  
Jan. 1–Dec. 31, 2022  
Jan. 1–Dec. 31, 2023  
4 or more  
Designed to seat more than nine persons behind the  
driver's seat;  
3
ꢀ$9,700  
$5,760  
Equipped with a cargo area (either open or enclosed by a  
4 or more  
cap) of at least 6 feet in interior length that is not readily  
accessible directly from the passenger compartment; or  
3
ꢀ$9,700  
$5,760  
4 or more  
That has an integral enclosure fully enclosing the driver  
compartment and load carrying device, does not have  
seating rearward of the driver's seat, and has no body section  
protruding more than 30 inches ahead of the leading edge of  
the windshield.  
3
ꢀ$9,800  
$5,860  
4 or more  
2
3
1
2
ꢀ$18,000  
$10,800  
$12,200*  
$19,500  
Recapture of section 179 expense deduction. If you  
used listed property more than 50% in a qualified business  
use in the year you placed the property in service and used it  
50% or less in a later year, you may have to recapture in the  
later year part of the section 179 expense deduction. Use  
Form 4797 to figure the recapture amount.  
* If you take the special depreciation allowance for qualified passenger automobiles  
acquired after September 27, 2017, and placed in service in 2023, the limit is $20,200.  
Table 3—Limits for Passenger Automobiles  
Placed in Service After 2003 and Before 2018  
(excluding trucks and vans placed in service after  
2002 and electric passenger automobiles placed in  
service before January 1, 2007)  
Section B  
Except as noted below, you must complete lines 30 through  
36 for each vehicle identified in Section A. Employees must  
provide their employers with the information requested on  
lines 30 through 36 for each automobile or vehicle provided  
for their use.  
AND the  
Exception. Employers are not required to complete lines 30  
through 36 for vehicles used by employees who are not more  
than 5% owners or related persons and for which the  
question on line 37, 38, 39, 40, or 41 is answered “Yes.”  
number of  
tax years in  
which this  
THEN the  
limit on your  
depreciation and  
section 179 expense  
deduction is:  
IF you placed  
your automobile  
in service:  
automobile has  
been in  
service is:  
Section C  
Jan. 1, 2004–Dec. 31, 2005  
Jan. 1, 2006–Dec. 31, 2011  
Jan. 1, 2012–Dec. 31, 2017  
4 or more  
4 or more  
4 or more  
$1,675  
$1,775  
$1,875  
Employers providing vehicles to their employees satisfy the  
employer's substantiation requirements under section 274(d)  
by maintaining a written policy statement that:  
Prohibits personal use including commuting, or  
Prohibits personal use except for commuting.  
Table 4—Limits for Trucks and Vans Placed in  
Service After 2003 and Before 2018  
An employee does not need to keep a separate set of  
records for any vehicle that satisfies these written policy  
statement rules.  
AND the  
THEN the  
number of  
For both written policy statements, there must be evidence  
that would enable the IRS to determine whether use of the  
vehicle meets the conditions stated below.  
IF you placed  
your truck or van  
in service:  
limit on your  
depreciation and  
section 179 expense  
deduction is:  
tax years in  
which this truck or  
van has been in  
service is:  
Line 37  
Jan. 1, 2004–Dec. 31, 2008  
Jan. 1–Dec. 31, 2009  
4 or more  
4 or more  
4 or more  
4 or more  
4 or more  
3
$1,875  
$1,775  
$1,875  
$1,975  
$2,075  
$3,450  
$2,075  
A policy statement that prohibits personal use (including  
commuting) must meet all of the following conditions.  
Jan. 1, 2010–Dec. 31, 2012  
Jan. 1, 2013–Dec. 31, 2015  
Jan. 1–Dec. 31, 2016  
The employer owns or leases the vehicle and provides it to  
one or more employees for use in the employer's trade or  
business.  
When the vehicle is not used in the employer's trade or  
Jan. 1–Dec. 31, 2017  
business, it is kept on the employer's business premises,  
unless it is temporarily located elsewhere (for example, for  
maintenance or because of a mechanical failure).  
4 or more  
14  
Instructions for Form 4562 (2023)  
       
No employee using the vehicle lives at the employer's  
Line 42  
business premises.  
Complete line 42 only for those costs you amortize for which  
the amortization period begins during your tax year beginning  
in 2023.  
No employee may use the vehicle for personal purposes,  
other than de minimis personal use (for example, a stop for  
lunch between two business deliveries).  
Column (a)—Description of costs. Describe the costs you  
are amortizing. You can amortize the following.  
Except for de minimis use, the employer reasonably  
believes that no employee uses the vehicle for any personal  
purpose.  
Geological and geophysical expenditures (section  
167(h)). You must amortize geological and geophysical  
expenses paid or incurred in connection with the exploration  
or development of oil and gas within the United States ratably  
over a 24-month period, beginning on the midpoint of the tax  
year in which the expenses were paid or incurred. For a major  
integrated oil company (as defined in section 167(h)(5)), the  
costs paid or incurred after December 19, 2007, must be  
amortized ratably over a 7-year period (a 5-year period for  
costs paid or incurred after May 17, 2006, and before  
December 20, 2007).  
Line 38  
A policy statement that prohibits personal use (except for  
commuting) is not available if the commuting employee is an  
officer, director, or 1% or more owner. This policy must meet  
all of the following conditions.  
The employer owns or leases the vehicle and provides it to  
one or more employees for use in the employer's trade or  
business, and it is used in the employer's trade or business.  
For bona fide noncompensatory business reasons, the  
Pollution control facilities (section 169). You can elect  
to amortize the cost of a certified pollution control facility over  
a 60-month period (84 months for certain atmospheric  
pollution control facilities placed in service after April 11,  
2005). See section 169 and the related regulations for details  
and information required in making the election.  
employer requires the employee to commute to and/or from  
work in the vehicle.  
The employer establishes a written policy under which the  
employee may not use the vehicle for personal purposes,  
other than commuting or de minimis personal use (for  
example, a stop for a personal errand between a business  
delivery and the employee's home).  
You can deduct a special depreciation allowance on  
Except for de minimis use, the employer reasonably  
a certified pollution control facility that is qualified  
!
believes that the employee does not use the vehicle for any  
personal purpose other than commuting.  
CAUTION  
property. However, you must reduce the amount on  
which you figure your amortization deduction by any special  
depreciation allowance allowed or allowable, whichever is  
greater.  
The employer accounts for the commuting use by  
including an appropriate amount in the employee's gross  
income.  
Also, a corporation must reduce its amortizable basis of a  
pollution control facility by 20% before figuring the  
amortization deduction.  
Bond premium (section 171). For individuals reporting  
amortization of bond premium for taxable bonds acquired  
before October 23, 1986, do not report the deduction here.  
See the instructions for Schedule A (Form 1040), line 16.  
Line 40  
An employer that provides more than five vehicles to its  
employees who are not 5% owners or related persons need  
not complete Section B for such vehicles. Instead, the  
employer must obtain the information from its employees and  
retain the information received.  
Line 41  
For taxpayers (other than corporations) claiming a  
deduction for amortization of bond premium for taxable  
bonds acquired after October 22, 1986, but before January 1,  
1988, the deduction is treated as interest expense and is  
subject to the investment interest limitations. Use Form 4952,  
Investment Interest Expense Deduction, to compute the  
allowable deduction.  
For taxable bonds acquired after 1987, you can elect to  
amortize the bond premium over the life of the bond. In  
general, you amortize bond premium on a bond by offsetting  
the stated interest allocable to a tax year with the bond  
premium allocable to that tax year and report the net amount  
of stated interest on your return. See section 171 and  
Regulations sections 1.171-1 through 1.171-5 for more  
information. Individuals, also see Pub. 550, Investment  
Income and Expenses. A bond premium carryforward as of  
the end of a taxpayer’s final accrual period is treated as a  
deduction. See Regulations section 1.171-2(a)(4)(i)(C). For  
an individual, do not report the deduction here. See the  
instructions for Schedule A (Form 1040), line 16.  
An automobile meets the requirements for qualified  
demonstration use if the employer maintains a written policy  
statement that:  
Prohibits its use by individuals other than full-time  
automobile salespersons,  
Prohibits its use for personal vacation trips,  
Prohibits storage of personal possessions in the  
automobile, and  
Limits the total mileage outside the salesperson's normal  
working hours.  
Part VI. Amortization  
Each year, you can deduct part of certain capital costs over a  
fixed period.  
If you amortize property, the part you amortize does  
not qualify for the section 179 expense deduction or  
!
CAUTION  
for depreciation.  
Attach any information the Code and regulations may  
require to make a valid election. See the applicable Code  
section and regulations for more information.  
Research and experimental expenditures (section  
174). You must capitalize and amortize specified research  
and experimental costs paid or incurred in tax years  
beginning in 2023 ratably over a 5-year period (a 15-year  
period for specified research and experimental expenditures  
attributable to foreign research conducted outside the United  
States, Puerto Rico, or any territory of the United States)  
15  
Instructions for Form 4562 (2023)  
             
beginning with the mid-point of the tax year in which the  
expenditures were paid or incurred. This includes any  
amounts paid or incurred in connection with the development  
of software. For more information, see section 174.  
The cost of acquiring a lease (section 178). If you get  
a lease for business property, you may recover the cost of  
acquiring the lease by amortizing it over the term of the lease.  
The term of the lease for amortization purposes generally  
includes all renewal options (and any other period for which  
you and the lessor reasonably expect the lease to be  
renewed). However, renewal periods aren't included if 75% or  
more of the cost of acquiring the lease is for the term of the  
lease remaining on the acquisition date (not including any  
period for which you may choose to renew, extend, or  
continue the lease). See section 178.  
Qualified forestation and reforestation costs (section  
194). You can elect to deduct a limited amount of qualifying  
reforestation costs paid or incurred during the tax year for  
each qualified timber property. You can elect to amortize the  
qualifying costs that are not deducted currently over an  
84-month period. There is no limit on the amount of your  
amortization deduction for reforestation costs paid or incurred  
during the tax year.  
A covenant not to compete entered into in connection with  
the acquisition of a business.  
A franchise, trademark, or trade name (including  
renewals).  
A longer period may apply to section 197 intangibles  
leased under a lease agreement entered into after March 12,  
2004, to a tax-exempt organization, governmental unit, or  
foreign person or entity (other than a partnership). See  
section 197(f)(10).  
A section 197 intangible is treated as depreciable  
property used in your trade or business. When you  
!
CAUTION  
dispose of a section 197 intangible, any gain on the  
disposition, up to the amount of allowable amortization, is  
recaptured as ordinary income. If multiple section 197  
intangibles are disposed of in a single transaction or a series  
of related transactions, calculate the recapture as if all of the  
section 197 intangibles were a single asset. This rule does  
not apply to section 197 intangibles disposed of for which the  
adjusted basis exceeds the fair market value.  
See section 197.  
Startup and organizational costs. You can elect to  
amortize the following costs for setting up your business.  
If you are otherwise required to file Form T (Timber),  
Forest Activities Schedule, you can make the election to  
amortize qualifying reforestation costs by completing Part IV  
of the form. See the Instructions for Form T (Timber) for more  
information.  
Business startup costs (section 195).  
Organizational costs for a corporation (section 248).  
Organizational costs for a partnership (section 709).  
For business startup and organizational costs paid or  
incurred after September 8, 2008, you can elect to deduct a  
limited amount of startup or organizational costs for the year  
that your business begins. You are not required to attach a  
statement to make this election. Once made, the election is  
irrevocable. Any cost not deducted currently must be  
See section 194. Partnerships and S corporations, also  
see the instructions for line 44.  
Optional write-off of certain tax preferences over the  
period specified in section 59(e). You can elect to  
amortize certain tax preference items over an optional period.  
If you make this election, there is no AMT adjustment for  
these expenditures. The applicable expenditures and the  
optional recovery periods are as follows.  
amortized ratably over a 180-month period. The amortization  
period starts with the month you begin business operations.  
See Regulations sections 1.195-1, 1.248-1, and 1.709-1.  
For business startup and organizational costs paid or  
incurred after October 22, 2004, and before September 9,  
2008, you can elect to deduct a limited amount of startup and  
organizational costs for the year that your business begins. If  
the election is made, you must attach any statement required  
by Regulations sections 1.195-1(b), 1.248-1(c), and  
1.709-1(c), as in effect before September 9, 2008. Any costs  
not deducted currently can be amortized ratably over a  
180-month period, beginning with the month you begin  
business.  
Circulation expenditures (section 173)—3 years.  
Intangible drilling and development costs (section  
263(c))—60 months.  
Mining exploration and development costs (sections  
616(a) and 617(a))—10 years.  
Research and experimental expenditures paid or incurred  
in tax years beginning before January 1, 2022 (section 174(a)  
prior to amendment by section 13206(a) of P.L. 115-97)—10  
years. Amortization for these costs should be reported on  
line 43.  
Note. You can apply the provisions of Regulations sections  
1.195-1, 1.248-1, and 1.709-1 to all expenses paid or  
incurred after October 22, 2004, provided the period of  
limitations on assessment has not expired for the year of the  
election. Otherwise, for business startup and organizational  
costs paid or incurred after October 22, 2004, and before  
September 9, 2008, the provisions under Regulations  
sections 1.195-1(b), 1.248-1(c), and 1.709-1(c), as in effect  
before September 9, 2008, will apply.  
For business startup and organizational costs paid or  
incurred before October 23, 2004, you can elect an  
amortization period of 60 months or more.  
Attach any statements required by the appropriate section  
and related regulations to Form 4562 by the due date,  
including extensions, of your return for the year in which the  
active trade or business begins. If you have both startup and  
organizational costs, attach a separate statement for each  
type of cost. If you timely filed your return without making the  
election, you can still make the election on an amended  
See section 59(e). For information on making the election,  
see Regulations section 1.59-1.  
Certain section 197 intangibles. The following costs  
must be amortized over 15 years (180 months) starting with  
the later of (a) the month the intangibles were acquired, or (b)  
the month the trade or business or activity engaged in for the  
production of income begins.  
Goodwill.  
Going concern value.  
Workforce in place.  
Business books and records, operating systems, or any  
other information base.  
A patent, copyright, formula, process, design, pattern,  
know-how, format, or similar item.  
A customer-based intangible (for example, composition of  
market or market share).  
A supplier-based intangible.  
A license, permit, or other right granted by a governmental  
unit.  
16  
Instructions for Form 4562 (2023)  
         
return filed within 6 months of the due date, excluding  
extensions, of the return. Enter “Filed pursuant to section  
301.9100-2” on the amended return.  
2. Multiplying the amount in column (c) by the percentage  
in column (e).  
Line 43  
Creative property costs. These are costs paid or  
incurred to acquire and develop screenplays, scripts, story  
outlines, motion picture production rights to books and plays,  
and other similar properties for purposes of potential future  
film development, production, and exploitation. You may be  
able to amortize creative property costs for properties not set  
for production within 3 years of the first capitalized  
transaction. These costs are amortized ratably over a 15-year  
period under the rules of Rev. Proc. 2004-36, 2004-24 I.R.B.  
1063.  
If you are reporting the amortization of costs (other than  
research and experimental expenditures) that began before  
your 2023 tax year and you are not required to file Form 4562  
for any other reason, do not file Form 4562. Report the  
amortization directly on the “Other Deductions” or “Other  
Expenses” line of your return.  
Note. The amortization deduction and research and  
experimental expenditures under former section 174(b) or the  
dollar amount of research and experimental expenditures for  
which you elected to amortize over the 10-year period under  
section 59(e) must be reported on line 43 of Form 4562.  
Attach a statement that shows (a) a description of the costs;  
(b) the date amortization began; (c) the amortizable amount;  
(d) the applicable Code section; (e) the amortization period;  
(f) the accumulated amortization; and (g) the amortization  
amount for this year.  
Column (b)—Date amortization begins. Enter the date  
the amortization period begins under the applicable Code  
section. The amortizable amount of a pollution control facility  
is reduced by any special depreciation allowance included on  
line 14 for that facility.  
Column (c)—Amortizable amount. Enter the total amount  
you are amortizing. See the applicable Code section for limits  
on the amortizable amount.  
Column (d)—Code section. Enter the Code section under  
which you amortize the costs. For examples, see the Code  
sections referenced in the instructions for line 42, column (a),  
earlier.  
Line 44  
Report the total amortization, including research and  
experimental expenditures paid or incurred in 2023 and prior  
years and the allowable portion of forestation or reforestation  
amortization, on the applicable “Other Deductions” or “Other  
Expenses” line of your return. For partnerships and S  
corporations, report the amortizable basis of any forestation  
or reforestation expenses for which amortization is elected  
and the year in which the amortization begins as a separately  
stated item on Schedules K and K-1 (Form 1065 or 1120-S).  
See the instructions for Schedule K (Form 1065 or 1120-S)  
for more details on how to report.  
Column (f)—Amortization for this year. Compute the  
amortization deduction by:  
1. Dividing the amount in column (c) by the number of  
months over which the costs are to be amortized and  
multiplying the result by the number of months in the  
amortization period included in your tax year beginning in  
2023, or  
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the  
United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to  
allow us to figure and collect the right amount of tax.  
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless  
the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as  
their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return  
information are confidential, as required by section 6103.  
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for  
individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown  
in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown  
below.  
Recordkeeping .  
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27 hr., 44 min.  
4 hr., 16 min.  
4 hr., 55 min.  
Learning about the law or the form.  
Preparing and sending the form to the IRS  
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would  
be happy to hear from you. See the instructions for the tax return with which this form is filed.  
17  
Instructions for Form 4562 (2023)  
           
Table A—General Depreciation System  
Method: 200% declining balance switching to straight line  
Convention: Half-year  
If the recovery period is:  
Year  
1
3 years  
33.33%  
44.45%  
14.81%  
7.41%  
5 years  
7 years  
14.29%  
10 years  
10.00%  
20.00%  
32.00%  
19.20%  
11.52%  
11.52%  
5.76%  
2
24.49%  
17.49%  
12.49%  
8.93%  
8.92%  
8.93%  
4.46%  
18.00%  
14.40%  
11.52%  
9.22%  
7.37%  
6.55%  
6.55%  
6.56%  
6.55%  
3.28%  
3
4
5
6
7
8
9
10  
11  
Table B—General Depreciation System  
Method: 150% declining balance switching to straight line  
Convention: Half-year  
If the recovery period is:  
10 years  
Year  
1
5 years  
15.00%  
25.50%  
17.85%  
16.66%  
16.66%  
8.33%  
7 years  
10.71%  
19.13%  
15.03%  
12.25%  
12.25%  
12.25%  
12.25%  
6.13%  
12 years  
6.25%  
11.72%  
10.25%  
8.97%  
7.85%  
7.33%  
7.33%  
7.33%  
7.33%  
7.33%  
7.32%  
7.33%  
3.66%  
15 years  
5.00%  
9.50%  
8.55%  
7.70%  
6.93%  
6.23%  
5.90%  
5.90%  
5.91%  
5.90%  
5.91%  
5.90%  
5.91%  
5.90%  
5.91%  
2.95%  
20 years  
7.50%  
13.88%  
11.79%  
10.02%  
8.74%  
8.74%  
8.74%  
8.74%  
8.74%  
8.74%  
4.37%  
3.750%  
7.219%  
6.677%  
6.177%  
5.713%  
5.285%  
4.888%  
4.522%  
4.462%  
4.461%  
4.462%  
4.461%  
4.462%  
4.461%  
4.462%  
4.461%  
4.462%  
4.461%  
4.462%  
4.461%  
2.231%  
2
3
4
5
6
7
8
9
10  
11  
12  
13  
14  
15  
16  
17  
18  
19  
20  
21  
18  
 
Table C—General Depreciation System  
Method: Straight line  
Convention: Mid-month  
Recovery period: 27.5 years  
The month in the 1st recovery year the property is placed in service:  
Year  
1
2
3
4
5
6
7
8
9
10  
11  
12  
1
3.485%  
3.636%  
3.637%  
3.636%  
1.97%  
3.182%  
3.636%  
3.637%  
3.636%  
2.273%  
2.879%  
3.636%  
3.637%  
3.636%  
2.576%  
2.576%  
3.636%  
3.637%  
3.636%  
2.879%  
2.273%  
3.636%  
3.637%  
3.636%  
3.182%  
1.970%  
3.636%  
3.637%  
3.636%  
3.485%  
1.667%  
3.636%  
3.636%  
3.637%  
3.636%  
1.364%  
3.636%  
3.636%  
3.637%  
3.636%  
1.061%  
3.636%  
3.636%  
3.637%  
3.636%  
0.758%  
3.636%  
3.636%  
3.637%  
3.636%  
0.455%  
3.636%  
3.636%  
3.637%  
3.636%  
0.152%  
3.636%  
3.636%  
3.637%  
3.636%  
2–9  
10,12,14,16,18, 20, 22, 24, 26  
11,13,15,17,19, 21, 23, 25, 27  
28  
Table D—General Depreciation System  
Method: Straight line  
Convention: Mid-month  
Recovery period: 31.5 years  
The month in the 1st recovery year the property is placed in service:  
Year  
1
2
3
4
5
6
7
8
9
10  
11  
12  
13,15,17,19, 21, 23, 25, 27, 29, 31 3.174%  
14,16,18, 20, 22, 24, 26, 28, 30 3.175%  
3.175%  
3.174%  
1.984%  
3.174%  
3.175%  
2.249%  
3.175%  
3.174%  
2.513%  
3.174%  
3.175%  
2.778%  
3.175%  
3.174%  
3.042%  
3.174%  
3.175%  
3.175%  
3.175%  
3.174%  
3.174%  
3.174%  
3.175%  
3.175%  
3.175%  
3.174%  
3.174%  
3.174%  
3.175%  
3.175%  
3.175%  
3.174%  
3.174%  
32  
1.720%  
Table E—General Depreciation System  
Method: Straight line  
Convention: Mid-month  
Recovery period: 39 years  
The month in the 1st recovery year the property is placed in service:  
Year  
1
2
3
4
5
6
7
8
9
10  
11  
12  
2.461%  
2.564%  
0.107%  
2.247%  
2.564%  
0.321%  
2.033%  
2.564%  
0.535%  
1.819%  
2.564%  
0.749%  
1.605%  
2.564%  
0.963%  
1.391%  
2.564%  
1.177%  
1.177%  
2.564%  
1.391%  
0.963%  
2.564%  
1.605%  
0.749%  
2.564%  
1.819%  
0.535%  
2.564%  
2.033%  
0.321%  
2.564%  
2.247%  
0.107%  
2.564%  
2.461%  
1
2–39  
40  
19  
 
20  
 
Index  
A
General asset accounts 7  
Income forecast method 7  
Intangible property 7  
Listed property 11  
Percentage of business or investment  
use 12  
Placed in service date 12  
Qualified business use 12  
Alternative Depreciation System:  
Basis for depreciation 11  
Classification of property 11  
Conventions 11  
Questions for employers on vehicle  
use 14  
Modified Accelerated Cost Recovery  
System (MACRS) 7  
Recapture of section 179 expense  
deduction 14  
Alternative Depreciation  
System 11  
Depreciation deduction 11  
Placed in service date 11  
Recovery period 11  
Recovery period 13  
General Depreciation System 8  
Involuntary conversion 8  
Like-kind exchange 8  
Other 7  
Section 179 expense deduction 14  
Special depreciation allowance 12  
Type of property 12  
Alternative minimum tax 3  
Amortization 15  
Amortizable amount 17  
Amortization deduction 17  
Depreciation methods:  
Declining balance 10  
Straight line 10  
R
Amortization of costs from prior  
year 17  
Recapture:  
Depreciation tables 18, 19  
Depreciation Worksheet 20  
Listed property 12, 14  
Amortization of costs in current  
year 15  
MACRS depreciation 11  
Section 179 expense deduction 3, 14  
Special depreciation allowance 6  
Recordkeeping 3  
Applicable code section 17  
Certain bond premiums 15  
Cost of acquiring a lease 16  
Creative property costs 17  
Date amortization begins 17  
Description of costs 15  
E
Election out:  
Involuntary conversion 8  
Like-kind exchange 8  
Special depreciation allowance 6  
S
Section 179 expense deduction 3  
Carryover of disallowed deduction 4  
Election 3  
Forestation and reforestation costs 16  
G
Geological and geophysical  
expenditures 15  
Limitations:  
General Depreciation System:  
Basis for depreciation 9  
Classification of property 8  
Conventions 9  
Optional section 59(e) write-off 16  
Pollution control facilities 15  
Maximum deduction 3  
Sport utility vehicle (SUV) 14  
Taxable income 4  
Research and experimental  
expenditures 15  
Threshold cost of property 4  
Listed property 14  
Depreciation deduction 10  
Determining the classification 9  
Placed in service date 9  
Recovery period 9  
Section 197 intangibles 16  
Startup and organizational costs 16  
Recapture 3, 14  
Special depreciation allowance 5  
Election out 6  
C
Conventions:  
Half-year 9  
Figuring the allowance 6  
Listed property 12  
I
Involuntary conversion 8  
Mid-month 10  
Mid-quarter 9  
Qualified property 5  
Recapture 6  
L
Like-kind exchange 8  
Listed property:  
D
U
Definitions 1  
Uniform capitalization rules 11  
Unit-of-production method 7  
Basis for depreciation 13  
Convention 13  
Amortization 2  
Commuting 2  
Cost or other basis 12  
Depreciation deduction 13  
Information on vehicle use 14  
Method 13  
Depreciation 1  
W
Listed property 2  
Listed property - Exceptions 2  
Section 179 property 2  
Depreciation:  
Where to find additional  
information 1  
Who must file 1  
Passenger automobile limits 13  
Definitions 13  
Accelerated Cost Recovery System  
(ACRS) 7  
Exception 13  
Leasehold property exception 13  
Tables 13  
Assets placed in service in prior  
year 7  
21