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What Tax Forms are Needed to Calculate Depreciation for My Business Tax Return?

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Question: What Tax Forms are Needed to Calculate Depreciation for My Business Tax Return?
Once you (or your CPA) has calculated depreciation on your business assets, you must include those calculations on your business tax return. Here is how:
Answer:

What Tax Form is Used for Depreciation and Amortization?
IRS Form 4562 is used to show depreciation for depreciable property which is placed in service during that tax year. Partnerships and multiple-member limited liability companies also use Form 4562 to claim depreciation on a car.

Section 179 depreciation deductions are also claimed on this form.

S Corporations use Form 4562 to claim depreciation for property placed in cervice for the current year, or for cars used for business purposes. C Corporations use Form 4562 for all depreciation deductions.

Form 4562
Form 4562 requires you to provide information on:

  • Cost of vehicles
  • Section 179 expense deductions
  • Special depreciation allowances
  • Depreciation on listed property
  • MACRS deductions for assets placed in service in previous tax years
  • Use of vehicles (percentage of use for business and personal)
Form 4562 is complicated. Unless you have a very simple depreciation situation, you should get your CPA or tax preparer to complete this form.

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