Tax depreciation · Guide
Form 4562: who files it and which line each number goes on
Key takeaways
- File Form 4562 when you claim depreciation on property placed in service this year, any §179 deduction, depreciation on any vehicle or listed property, or new amortization.
- Part I is §179, Part II is bonus (line 14), Part III is regular MACRS (line 19 for this year's assets, line 17 for earlier ones), Part V is vehicles and other listed property.
- Vehicles never go in Parts II or III: their bonus goes on line 25 and their depreciation on line 26.
- Use a separate Form 4562 for each business or activity, but only one complete Part I.
Form 4562, Depreciation and Amortization, is where depreciation is computed before it flows to your Schedule C, Schedule E, or business return.
Do I need to file Form 4562?
The instructions require it if you are claiming any of the following [Form 4562 instr., Who Must File]:
- depreciation for property placed in service during the tax year;
- a section 179 deduction (including a carryover);
- depreciation on any vehicle or other Listed property. Passenger automobiles, other property used for transportation, and property of a type generally used for entertainment, recreation or amusement. Extra record-keeping and 50% business-use rules apply. Glossary, whenever it was placed in service;
- a deduction for any vehicle reported on a form other than Schedule C;
- any depreciation on a corporate income tax return (other than Form 1120-S); or
- amortization of costs that begins during the year.
So a sole proprietor whose only assets were placed in service in earlier years, none of them vehicles, may not need the form that year. File a separate Form 4562 for each business or activity that needs one, but complete only one Part I in full for the §179 computation [Form 4562 instr., Who Must File].
The parts, in order
| Part | Lines | What goes there |
|---|---|---|
| I. Section 179 | 1–13 | Dollar limit (1–5), elected property (6–8), business income limit (11), deduction (12), carryover (13) |
| II. Special allowance and other | 14–16 | Bonus depreciation on non-listed property (14) |
| III. MACRS | 17–20 | Earlier years’ assets (17); this year’s assets by class, GDS (19a–19j) or ADS (20a–20e) |
| IV. Summary | 21–23 | Listed property total (21), grand total (22) |
| V. Listed property | 24–41 | Vehicles and other listed property: bonus (25), more than 50% business use (26), 50% or less (27), mileage questions |
| VI. Amortization | 42–44 | Costs amortized under other code sections |
Source: Form 4562 (2025) [Form 4562].
Example 1: a computer, no bonus
A $3,200 computer placed in service in September 2026, 100% business use, with an election out of bonus depreciation for 5-year property. Five-year property, half-year convention, Table A-1: 20% in year 1.
| Line | Entry |
|---|---|
| 19b (b) | 09/2026 |
| 19b (c) basis | 3,200.00 |
| 19b (d)–(f) | 5 yrs. · HY · 200 DB |
| 19b (g) deduction | 640.00 |
| 22 total (with your other lines) | includes 640.00 |
In 2027 and later, this computer’s deduction ($1,024.00, then $614.40, …) goes on line 17 instead. This is the computer preset.
Example 2: a car used 80% for business
A $45,000 car (6,000 lb or less) placed in service in May 2026, 80% business use, acquired after January 19, 2025, 100% bonus. The 2026 first-year limit with bonus is $20,300 [Rev. Proc. 2026-15, §4.01(2)]; at 80% business use it becomes $16,240 [Form 4562 instr., Limits for passenger automobiles].
| Line | Entry |
|---|---|
| 25 special allowance (listed) | 16,240.00 |
| 26 (c) business use | 80% |
| 26 (d) cost | 45,000.00 |
| 26 (h) depreciation | 0.00 |
| 28 → 21 | 16,240.00 |
| 30–36 | Mileage and use questions |
The limits cap the total of line 25 and columns (h) and (i) of line 26 for the car [Form 4562 instr., Limits for passenger automobiles]. From 2027 the calculator applies the Rev. Proc. 2019-13 safe harbor: try the car preset.
Common mistakes the instructions warn about
- Putting vehicles in Part II or III. Listed property goes only in Part V [Form 4562, Part II note].
- Claiming §179 beyond business income: line 11 limits it, and the rest carries over on line 13 [Form 4562 instr., line 11].
- Forgetting the mileage questions in Part V, Section B, for vehicles used by a sole proprietor, partner or more-than-5% owner [Form 4562, Part V].
Sources
- Instructions for Form 4562 (2025), Internal Revenue Service. Official guidance · full text · checked Oct 24, 2026
- Form 4562 (2025), Depreciation and Amortization, Internal Revenue Service. Official form · full text · checked Oct 24, 2026
- Rev. Proc. 2026-15 (2026 passenger automobile limits), Internal Revenue Service. Revenue procedure · full text · checked Oct 24, 2026
- Publication 946 (2025), How To Depreciate Property, Internal Revenue Service. Official guidance · full text · checked Oct 24, 2026
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