Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Where do I put each amount on Form 4562?

Customer Question
Form 4562 is the only...

Form 4562 is the only form I cannot figure out. Could anyone give me the amounts and where to put each amount in on the form?

Submitted: 8 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 hours by:
7/11/2010
Tax Professional: Anne, Master Tax Preparer replied 8 years ago
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,452
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Verified

Thank you for using JustAnswer. I'm afraid I need some more information.

Form 4562 is used to show depreciation of business assets, either those placed in service in the current tax year, or the continuation of depreciation of assets placed in service in prior years.

Please tell me what kind of business you have, and whether you are filing as a Sole Proprietor on Form 1040 Schedule C, or if you have registered your business as some other type of entity (for example, a Partnership, S Corp, C Corp, etc.) and what assets are you trying to depreciate, and if this is the first year you are placing the assets in service this year.

Once I have a better understanding of how your business is set up, I'll be in a better position to help you.

Ask Your Own Tax Question
Customer reply replied 8 years ago

All I really need to know is the numbers for depreciation for Form 4562.

I bought the truck on 10/01/2008 amount $132,301, what can I put in elected cost, basis for depreciation and depreciation deduction for 2008 taxes?

Also balance owed 2009 is $110,049. Do I still use $132,301 for cost? Do I put in elected cost again and if so for how much? Plus, the amount for basis for depreciation and depreciation deduction amount for 2009?

Hope you can help.

Tax Professional: Anne, Master Tax Preparer replied 8 years ago

Okay there are some additional factors that play into this.

First, you MUST have mileage records showing Total Number of Miles the truck was driven, and the Total Number of Business Miles was driven. Number of Business Miles divided by number of Total miles driven gives you the percent of Business Use of your truck, and that's the place you start. (Although this can be 100% business use, it’s not always. If you use your truck to travel to a store or location that has nothing to do with work, then that would be considered to be personal use, and not deductible.) I know that truckers must keep logs, so your written documentation requirement for the IRS is generally covered by the logs.

Secondly, IRS has set up tables for depreciating assets, and they have assigned what they consider to be the useful life of an asset based on criteria known only to them I'm sure. IRS has assigned trucks a useful life of 5 years. Please see page 105 from below pub:

2009 Publication 946How To Depreciate Property

Since you purchased this truck in the last quarter of the year (October), IRS further limits your deduction by having you use a method called "Mid Quarter Convention". Really, this is not as complicated as it sounds. The basic idea here is if you had purchased your truck say in March, and I purchase mine in November, would you want my write off to be the same as yours? After all, you had to pay insurance/gas/registration/plates, etc. for many more months than I did, and that’s the basis behind that "Mid Quarter Convention". (This is assuming by the way that the truck was the most expensive asset you purchased in year 2008)

So, with those factors taken into account, let’s put this in English for you:

Your purchase price of the truck was $13,201. Assuming that you used the truck 100% for business, you will use the depreciation table A-5 found on page 79.in 2009 Publication 946How To Depreciate Property

For 2008, you will use page 2 of Form 4562 Part V "Listed Property Used more than 50% in a Qualified Business Use (line 26)

26 (a) you will list the make/model/year of truck (as much as will fit)

26(b) you will list the date you put the truck into service (this is generally the date you purchase it, but not always, especially if it wasn't licensed right away or needed some repair work first)

26(c) business percent - this is business miles divided by total miles driven - again I'm assuming this is used 100% for business use.

26(d) your cost ($132,301)

26(e) basis for depreciation (if 100% business use, basis for depreciation is $132,301) If basis for business was use based on mileage was say 90%, then 90% x $132,301 = $119,071

26(f) Recovery period, 5 years

26(g) already filled in for you

26(h) depreciation deduction. This is where the depreciation table I spoke of earlier comes in. The maximum deduction you could take in 2008 was $11,160 See below:

Trucks and Vans

BE SURE you complete Part B, lines 30-36 on page 2 of the Form 4562. This is where you may need your logs to fill in the number of miles driven and the number [SY2] business miles driven.

Since business percent may change based on number of business miles driven vs total miles driven, you will always need to fill out this form in exactly the same way, using the tables found in, Trucks and Vans link for the maximum amount you may claim.

Finally, to answer you last question, do you always use $132,301 as the cost basis, or do you subtract the amount that was depreciated. The answer to that question is that you ALWAYS start with the original cost basis. The only way this changes is if your business use drops below 100%, and then you would adjust it. You never adjust it for the deprecation taken, but you may never depreciate more than your cost basis in the asset.

I hope this helps.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Anne Your Own Question
Anne
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,452
2,452 Satisfied Customers
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses

Anne is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I need to know how to fill out a 4562 for a breeding dog. I
I need to know how to fill out a 4562 for a breeding dog … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Trying to fill out a form 4562 in tax software for LLC and
trying to fill out a form 4562 in tax software for LLC and don't understand it … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I spoke with you on the phone yesterday. I have the
I spoke with you on the phone yesterday. I have the commercial fishing vessel. It is owned 60% by my father in law, and 40% by me, so the value of the vessel to depreciate is $305,000. How do I specif… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am working on a 2016 Schedule C form and cannot figure out
I am working on a 2016 Schedule C form and cannot figure out how to file a 2016 form 4562. How can you help? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Tyeise ***** I'm trying to figure out how to file a 1065
Customer:Customer***** I'm trying to figure out how to file a 1065 for the first time, as well as a schedule K I can't figure out where to put all the expenses the partnership had. Also complicating t… read more
abci168
abci168
Principal
27 satisfied customers
I Purchased a utility trailer along with parts to repair it
I Purchased a utility trailer along with parts to repair it and trailer hitch etc. for my business and do not know where to show it on schedule C. Also purchased shelving for my shop and I am not sure… read more
S. Anderson
S. Anderson
31 satisfied customers
in 2010, a portion of home used for business A (LLC partnership)
in 2010, a portion of home used for business A (LLC partnership) was placed on a 39yr SL depreciation schedule and reported on 4562 (the accountant reported it as employee business activity on form 45… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am amending my 2007 tax return (and all others since) to
I am amending my 2007 tax return (and all others since) to change the adjusted cost basis for rental property and to separate out cost between land and building (math error on my part). Am I correct t… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
I am an independent contractor and leased a car for 3 years
I am an independent contractor and leased a car for 3 years ending in July 2013- I made larger payments this last year than the lease amount and then in July 2013 bought the car at the buy out amount.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What code section do you put loan fees on rental properties?
Regarding loan fees on rental properties. Publication 527 basically just says to deduct points over the life of the loan. It makes it sound like you just add it to interest expense. But it looks like … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I am a finish carpenter. I purchased a 2008 Cargo Van (GVW
I am a finish carpenter. I purchased a 2008 Cargo Van (GVW over 6000 lbs.) that was placed in service on 11/28/2007 for $23,240.00 (cost/basis for depreciation). I have been depreciating the van on th… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My mother died in 2003. My brother and I inherited the house
My mother died in 2003. My brother and I inherited the house which has three apartments. Two of my brothers live in the house and the other apartment is rented out. The pays seven hundred dollars a mo… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
how can I tell if my tax program is depreciating my husbands
how can I tell if my tax program is depreciating my husbands truck twice? It asks about depreciation in the assets and the vehicle. Please help… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am doing a late 2005 tax return.. what line do I place the
I am doing a late 2005 tax return.. what line do I place the 2005 SUV $25,000 section 179 tax deduction and what line do I place the remaining 5 year deprciation. How do I word it on the descript Can … read more
Anne
Anne
Master Tax Preparer
2,452 satisfied customers
how to calucate depreciation for a business when you dont
how to calucate depreciation for a business when you don't have the numbers from the year before… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am a musician and teacher at a reputable music ...
I am a musician and teacher at a reputable music conservatory. I spent almost $20,000 this year on the renovation of a 1929 grand piano which was left to me as a gift. What and how can I deduct as a b… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
How do I figure Form 4562 for my business purchases, ...
How do I figure Form 4562 for my business purchases, Optional Information: ANETA, North Dakota Already Tried: Just about everything… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
how can i get copies of my w-2s from more than ten years ago, needed
NEED COPIES OF W-2'S FROM 92, 94. IF YOU GIVE AN ANSWER THAT WORKS I'LL PAY TWO HUNDRED DOLLARS. I WILL PAY TWO HUNDRED DOLLARS! ANYONE WITH KNOWLEDGE ON THIS SUBJECT… read more
Tammy F.
Tammy F.
Freelance Writer and Editor, Animal Resc
4,438 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x