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
関連フォーム
- フォーム 4562 - 減価償却・償却(物件情報を含む)
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
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carryover from a previous year).
Depreciation on any vehicle or other listed property
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Future Developments
(regardless of when it was placed in service).
A deduction for any vehicle reported on a form other than
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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
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than Form 1120-S).
Amortization of costs that begins during the 2023 tax year.
If you are an employee deducting job-related vehicle
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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
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
plants. See Certain qualified property acquired after
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.
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Pub. 534, Depreciating Property Placed in Service Before
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1987.
Pub. 551, Basis of Assets.
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Pub. 946, How To Depreciate Property.
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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
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Tangible property such as buildings, machinery, vehicles,
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furniture, and equipment; and
property, and
Intangible property such as patents, copyrights, and
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Provide information on the business/investment use of
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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
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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
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168(e)(6), and
Any of the following improvements to nonresidential real
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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,
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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.
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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.
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Other tangible property (except buildings and their
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structural components) used as:
Any other property used for transportation if the nature of
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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
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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
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structures.
Storage facilities (except buildings and their structural
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components) used in connection with distributing petroleum
or any primary product of petroleum.
Off-the-shelf computer software.
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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
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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
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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
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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
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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
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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
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
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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
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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
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The term of the lease is less than 50% of the property's
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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
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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
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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
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.
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Any property placed in service by your spouse, even if you
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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
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
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recovery period of 20 years or less;
Computer software defined in and depreciated under
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section 167(f)(1);
Water utility property (see 25-year property, later); and
Qualified film, television, and live theatrical productions, as
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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
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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,
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2008.
The original use of the property must begin with you after
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August 31, 2008.
For self-constructed property, special rules apply. See
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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
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services.
Basis adjustment to investment credit property under
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section 50(c).
Section 181 expense deduction.
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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
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•
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
the classification, later.
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
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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/L” for 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
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/L” for 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.
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.
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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
Index
A
Percentage of business or investment
use 12
Alternative Depreciation System:
Conventions 11
Questions for employers on vehicle
use 14
Modified Accelerated Cost Recovery
Recapture of section 179 expense
deduction 14
Alternative Depreciation
System 11
Other 7
Amortization 15
Depreciation methods:
R
Amortization of costs from prior
year 17
Recapture:
Amortization of costs in current
year 15
Recordkeeping 3
E
Election out:
S
Election 3
G
Geological and geophysical
expenditures 15
Limitations:
General Depreciation System:
Conventions 9
Research and experimental
expenditures 15
C
Conventions:
Half-year 9
I
Mid-month 10
Mid-quarter 9
Recapture 6
L
Listed property:
D
U
Definitions 1
Convention 13
Amortization 2
Commuting 2
Method 13
Depreciation 1
W
Depreciation:
Where to find additional
information 1
Definitions 13
Accelerated Cost Recovery System
(ACRS) 7
Exception 13
Assets placed in service in prior
year 7
21