4562: Depreciation and Amortization (2025)
Federal · IRS · Used for tax years 2025
Form 4562 reports depreciation and amortization deductions and includes an election to expense certain property under section 179. It also collects information about listed property, including vehicles, and is attached to your tax return.
Who files this form
Complete and file Form 4562 if you claim any of the following, unless an exception applies:
- Depreciation for property placed in service during the 2025 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 2025 tax year.
File a separate Form 4562 for each business or activity for which it is required. However, complete only one Part I in full when figuring your section 179 deduction.
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 these records and details available, as applicable:
- Your name, identifying number, and the business or activity the form covers.
- Property descriptions, costs or other basis, dates placed in service, and business/investment use percentages.
- Depreciation records showing basis, method, recovery period, and convention. Keep the information needed to calculate depreciation in your permanent records.
- Your 2024 Form 4562 if you are carrying a disallowed section 179 deduction to 2025. Line 10 uses the amount from line 13 of that form.
- Evidence supporting the business/investment use of listed property. The form asks whether you have evidence and whether it is written.
- Vehicle mileage information separated into business/investment, commuting, and other personal miles.
- For amortization, descriptions of costs, start dates, amortizable amounts, applicable Code sections, and amortization periods or percentages.
Some elections require an attached statement. Additional sheets may be attached if you need more space.
How to file
Attach Form 4562 to your tax return. Use a separate form for each business or activity for which it is required.
To make a section 179 election, file Form 4562 with either:
- Your original return for the tax year the property was placed in service, whether or not that return is filed on time.
- An amended return filed within the time allowed by law. Identify each item covered by the election and the part of its cost you elect to expense, and include resulting adjustments to taxable income.
The supplied text does not give a mailing address or e-file directions. Instructions and the latest information are available at www.irs.gov/Form4562.
Common mistakes
- Putting listed property in the wrong part. Complete Part V before Part I if you have listed property. Do not report listed property in Parts II or III.
- Completing too much vehicle information. For a vehicle using the standard mileage rate or a lease expense deduction, complete only lines 24a and 24b, Section A columns (a) through (c), all of Section B, and Section C if applicable.
- Counting commuting as business mileage. Line 30 specifically excludes commuting miles.
- Failing to reduce the amount available for depreciation. Reduce the amount used to calculate depreciation or amortization by the section 179 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 cannot 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.
Questions people ask
What is depreciation?
Depreciation is an annual deduction that lets you recover the cost or other basis of business or investment property over a number of years. It starts when you first use the property in your business or to produce income.
Can I depreciate land?
No. The instructions state that land cannot be depreciated.
What are the section 179 dollar limits for 2025?
For tax years beginning in 2025, the maximum deduction is $2,500,000. This limit is reduced by the amount that the cost of section 179 property placed in service during the tax year exceeds $4,000,000. The deduction is also subject to a business income limitation. The maximum section 179 deduction for SUVs placed in service in tax years beginning in 2025 is $31,300.
Can an estate or trust make the section 179 election?
No. An estate or trust cannot make this election.
Do I need to submit detailed depreciation records for older assets?
Except for Part V, which covers listed property, the IRS does not require detailed depreciation information with your return for assets placed in service in previous tax years. You must still keep the information needed to calculate depreciation, including basis and method, in your permanent records.