4562: Depreciation and Amortization (2024)
Federal · IRS · Used for tax years 2024
Form 4562 is attached to your tax return to report depreciation, amortization, and the election to expense certain property under section 179. It also reports business or investment use of listed property, including vehicles.
Who files this form
Generally, file Form 4562 if you are claiming any of these:
- Depreciation for property placed in service during the 2024 tax year.
- A section 179 expense deduction, including a carryover from a previous year.
- Depreciation on a vehicle or other listed property, regardless of when it was placed in service.
- A deduction for a vehicle reported on a form other than Schedule C (Form 1040).
- Any depreciation on a corporate income tax return other than Form 1120-S.
- Amortization of costs that begins during the 2024 tax year.
Employees deducting job-related vehicle expenses using the standard mileage rate or actual expenses should use Form 2106 for that purpose.
What you'll need
Have the records and information that apply to your property ready:
- Property descriptions, costs or other basis, dates placed in service, and business or investment use percentages.
- Depreciation records showing the basis, method, recovery period, convention, and prior depreciation needed for your calculations.
- Your 2023 Form 4562 if you have a section 179 carryover. Line 10 uses the amount from line 13 of that form.
- Evidence supporting the business or investment use of listed property. The form asks whether you have evidence and whether it is written.
- Vehicle mileage information, including business or investment miles, commuting miles, and other personal miles, when Part V, Section B applies.
- For amortization, descriptions of costs, starting dates, amortizable amounts, applicable Code sections, and amortization periods or percentages.
Keep the information needed to calculate depreciation in your permanent records. Except for Part V listed property, the IRS does not require detailed depreciation information with your return for assets placed in service in previous tax years.
How to file
Attach Form 4562 to your tax return. File a separate Form 4562 for each business or activity for which it is required. Attach additional sheets if you need more space.
If you claim section 179 deductions for multiple businesses or activities, complete one Part I for the combined amounts and label it “Summary.” Do not complete the rest of that summary form. Enter each activity's allocated deduction on line 12 of its separate Form 4562, with no other entries in Part I.
Make a section 179 election on Form 4562 filed with your original return for the year the property was placed in service, or with an amended return filed within the time allowed by law.
Common mistakes
- Putting listed property in the wrong part. Complete Part V before Part I if you have listed property. Do not use Part II or Part III for listed property.
- Counting commuting miles as business miles. Line 30 excludes commuting miles. Report commuting miles separately on line 31.
- Failing to reduce the depreciation basis. Reduce the amount used to calculate depreciation or amortization by your section 179 expense deduction. Also reduce the amount used for regular depreciation or amortization by any special depreciation allowance taken.
- Deducting more than the depreciable basis. Prior years' depreciation plus current-year depreciation can never exceed the property's depreciable basis.
- Using this form for the section 179D building deduction. Use Form 7205, not Form 4562, for the energy efficient commercial buildings deduction.
- Making a section 179 election for an estate or trust. Estates and trusts cannot make this election.
Questions people ask
What is Form 4562 used for?
Use it to claim depreciation and amortization deductions, elect to expense certain property under section 179, and provide information about business or investment use of automobiles and other listed property.
What is the section 179 deduction limit for 2024?
For tax years beginning in 2024, the maximum is generally $1,220,000. That limit is reduced by the amount that the cost of section 179 property placed in service during the year exceeds $3,050,000. A business income limitation also applies. The maximum section 179 expense deduction for SUVs placed in service in tax years beginning in 2024 is $30,500.
Can I depreciate land?
No. The instructions state that land cannot be depreciated.
Which parts do I complete for a vehicle if I use the standard mileage rate or deduct lease expenses?
Complete only lines 24a and 24b, columns (a) through (c) of Part V, Section A, all of Section B, and Section C if applicable. If you answer “Yes” to any of questions 37 through 41, do not complete Section B for the covered vehicles.