Form 4562 Depreciation and Amortization

Introduction

Form 4562 is a supplemental form used by businesses to calculate depreciation and amortization deductions for certain types of property, and provide information on the business/investment use of automobiles and other listed property.

For tax-exempt organizations filing Form 990-T, this form is critical for reporting depreciation deductions related to unrelated business income, which can significantly impact the amount of tax owed.

In this resource guide, we'll delve into the filing purpose of Form 4562, identify the entities required to file, who must file, and address common questions.

What is Form 4562?

Form 4562 is used to claim depreciation and amortization deductions for various types of property such as buildings, machinery, vehicles, and equipment, as well as to amortize certain intangible assets like goodwill, patents, or start-up costs.

The form also includes multiple sections to accommodate various types of assets and methods of depreciation, such as the Modified Accelerated Cost Recovery System (MACRS) and Section 179 expense deductions.

Who must file Form 4562?

Form 4562 must be filed by any business, organization, or individual who is claiming a deduction for depreciation or amortization.

This includes businesses with significant investments in property or equipment, landlords with rental properties, and tax-exempt organizations that need to account for depreciation related to unrelated business income on Form 990-T.

Complete and file Form 4562 if you are claiming any of the following.

• Depreciation for property placed in service during the 2023 tax year
• A section 179 expense deduction (which may include a carryover from a previous year).
• Depreciation on any vehicle or other listed property (regardless of when it was placed in service).
• A deduction for any vehicle reported on a form other than Schedule C (Form 1040), Profit or Loss From Business.
• Any depreciation on a corporate income tax return (other than Form 1120-S).
• Amortization of costs that begins during the 2023 tax year

Choose TaxZerone to complete your Form 4562 filing

TaxZerone is an IRS-authorized e-file service provider; meaning you get instant updates on your return’s filing status.

We ensure help is available at every step to provide you with an easy e-filing experience!

Here's what sets TaxZerone apart:

• Simplified Interface: Our user-friendly platform makes filing a breeze, even for those unfamiliar with tax forms.
• Confidence Through Accuracy: TaxZerone helps you avoid errors by providing clear instructions and error checks, ensuring accurate reporting, and minimizing potential tax issues.

Here’s how your Form 990-T return with Form 4562 attachment is transmitted to the IRS in 3 simple steps!

1. Provide Organization Details - Choose the tax year for which you want to file the 990-T return, and provide your organization’s details.
2. Preview Form 4562 - Attach Form 4562 to calculate depreciation and amortization deductions for certain types of property and preview the information provided in the return for accuracy before transmitting.
3. Transmit to the IRS - Transmit Form 4562 along with your 990-T Return to the IRS and get the acceptance in just a few hours.

At TaxZerone, we go beyond just filing – we're here to make your entire experience seamless and stress-free.