41-105: IA 4562A & B Depreciation Adjustment Schedule 41-105 (2025)

Who files this form

Complete the 2025 IA 4562A if you claimed depreciation on property during the tax year, or disposed of property during the tax year, and Iowa depreciation adjustments were made to that property in earlier years.

The form also lists these situations requiring completion:

• Federal section 179 expense exceeded $25,000 for tax years beginning in 2003 through 2005, and you chose to claim no more than $25,000 for Iowa purposes.
• Federal section 179 expense exceeded $133,000 for tax years beginning in 2009, $25,000 for tax years beginning in 2016 or 2017, $70,000 for tax years beginning in 2018, or $100,000 for tax years beginning in 2019.
• You claimed 5-year depreciation on certain new farming machinery and equipment purchased in 2009.
• You placed farming business property in service after December 31, 2017, and before January 1, 2019, and used the federal 200% declining balance method. Iowa requires the 150% method for this property.
• An Iowa like-kind exchange of personal property on IA 8824 in tax year 2018 or 2019 resulted in different Iowa and federal bases.
• You placed a passenger vehicle in service in tax year 2018 and claimed regular first-year federal depreciation exceeding $3,560 for trucks and vans, or $3,160 for other passenger vehicles.
• You claimed the federal cost recovery adjustments specified in the instructions under the Tax Cuts and Jobs Act for tax year 2018, or under the Taxpayer Certainty and Disaster Tax Relief Act or CARES Act for tax year 2018 or 2019.

Use IA 4562B to record the cumulative effect of the adjustments computed on IA 4562A.

What you'll need

Have these forms and records available, as applicable:

• Your name, SSN or FEIN, and pass-through entity name and FEIN.
• Property records showing descriptions, dates placed in service, asset lives, costs or other bases, and current-year and accumulated federal and Iowa depreciation and section 179 expense.
• Your federal Form 4562, including lines 9 through 12, for the section 179 calculations.
• Your 2024 Iowa section 179 carryforward calculation, if any.
• Sale or disposal dates and total Iowa and federal depreciation and section 179 expense for disposed property.
• Prior IA 8824 forms for applicable Iowa like-kind exchange adjustments.
• Prior IA 4562A adjustment amounts and tax period ending dates for IA 4562B.

Keep records supporting any grouping of assets by class. Keep the column H worksheet and documentation of any carryover. The Department may also request copies of prior tax periods’ IA 4562As.

How to file

Include IA 4562A and IA 4562B with your Iowa tax return. The supplied text does not provide a mailing address or e-file directions.

1. Complete IA 4562A, Part I. List qualifying property, attach a separate property schedule, or group assets by class with supporting records. Calculate federal depreciation using the federal method and Iowa depreciation using MACRS with any required nonconformity adjustment.
2. Complete Part II when applicable. Report sales or disposals requiring an Iowa depreciation adjustment. Otherwise, skip to Part III.
3. Complete Part III. Add columns E and F for line 1, and columns H and I for line 2. Subtract line 2 from line 1 for line 3. Enter the Part II, column F total on line 4, then add lines 3 and 4 for line 5.
4. Report line 5 on your Iowa return:

• 1040: Schedule 1, line 9, Column A Additions for positive amounts or Column B Subtractions for negative amounts.
• 1041: Schedule A additions, line 4 for positive amounts or Schedule A subtractions, line 6 for negative amounts.
• 1065, 1120S, or 1120F: Schedule A, line 6.
• 1120: Schedule A, line 8.

1. Complete IA 4562B, Part I. Start with the first tax period when you made an Iowa depreciation or section 179 adjustment. Enter each subsequent period through the current period and update the running balance.

Common mistakes

• Putting accumulated amounts in current-year columns. Columns E, F, H, and I are only for current-year deductions. Columns G and J include depreciation and section 179 expense over the assets’ lives.
• Using incorrect section 179 totals. Column E’s total must equal federal Form 4562, line 12. Column H’s total must equal line 5 of the column H worksheet, even if the business income limit makes it lower than the sum of the entries in column H.
• Sending the column H worksheet with the return. Keep it for your records instead.
• Including an excluded exchange in Part II. Do not include personal property given up in a qualifying Iowa like-kind exchange on IA 8824.
• Missing IA 4562B notations. Put negative adjustments in parentheses and add an asterisk after a tax period if its adjustment changed from the amount originally claimed.
• Not providing prior IA 4562As when requested. This can delay processing or cause denial of your adjustment. The IA 4562B instructions also say not to send copies of the asset listings required with IA 4562A.

Questions people ask

Does federal bonus depreciation always require an Iowa adjustment?

No. Iowa fully conforms with federal bonus depreciation for tax years beginning on or after January 1, 2021. No adjustment is required on this form for federal bonus depreciation on property placed in service during those tax years. Adjustments may still be required for older property.

Can I group assets instead of listing each one separately?

Yes. Assets may be grouped by class, such as all 3-year or all 5-year assets. You must maintain records supporting how each item was grouped.

Can I skip Part II?

Yes, if you have not sold or disposed of property for which an Iowa depreciation adjustment was applied.

What is the difference between IA 4562A and IA 4562B?

IA 4562A calculates the depreciation adjustment reported on your Iowa return. IA 4562B records those adjustments by tax period and tracks their cumulative balance.

Official sources

• https://revenue.iowa.gov/media/4407/download?inline