Instructions for Form 4562

2025

Instructions for Form 4562

Depreciation and Amortization (Including Information on Listed Property)

Section references are to the Internal Revenue Code unless

otherwise noted.

Future Developments

For the latest information about developments related to

Form 4562 and its instructions, such as legislation enacted

after this form and instructions were published, go to IRS.gov/

Form4562.

What’s New

Changes to Form 4562. New lines 19h and 20e have been

added to report MACRS depreciation during the 2025 tax

year for 50-year property. Line 19h is used to report

depreciation using the General Depreciation System (GDS)

and line 20e is used to report depreciation using the

Alternative Depreciation System (ADS).

Line 23 of Form 4562 has been divided into lines 23a and

23b to report information on the amount of the basis

attributable to interest costs capitalized under section 263A(f)

for costs that have been capitalized under section 263A and

the basis attributable to costs capitalized under section 263A

other than interest costs capitalized under section 263A(f).

See the instructions for Lines 23a and 23b, later.

A new line 24c has been added to Part V of Form 4562. If

you own, lease, or charter an aircraft for which you are

claiming depreciation, you must check the box for all that

apply. See the instructions for Line 24c, later.

Section 179 deduction dollar limits. For tax years

beginning in 2025, the maximum section 179 expense

deduction is $2,500,000. This limit is reduced by the amount

by which the cost of section 179 property placed in service

during the tax year exceeds $4,000,000. Also, the maximum

section 179 expense deduction for sport utility vehicles

(SUVs) placed in service in tax years beginning in 2025 is

$31,300.

Phase down of the special depreciation allowance for

certain qualified property acquired before January 20,

2025, and certain plants bearing fruits and nuts planted

or grafted before January 20, 2025. Certain qualified

property (other than property with a long production period

and certain aircraft) placed in service after December 31,

2024, and before January 1, 2026, is limited to a special

allowance of 40% of the depreciable basis of the property.

Certain property with a long production period and certain

aircraft placed in service after December 31, 2024, and

before January 1, 2026, is limited to a special depreciation

allowance of 60% of the depreciable basis of the property.

For certain plants bearing fruits and nuts planted or grafted

after December 31, 2024, and before January 20, 2025, the

special depreciation allowance is also limited to 40% of the

adjusted basis of the specified plants. See Certain qualified

property acquired after September 27, 2017, and before

January 20, 2025, and Certain plants bearing fruits and nuts

planted or grafted before January 20, 2025, later.

Mar 30, 2026

Special depreciation allowance for certain qualified

property acquired after January 19, 2025, and certain

plants bearing fruits and nuts planted or grafted after

January 19, 2025. P.L. 119-21, commonly known as the

One Big Beautiful Bill Act, reinstated the 100% special

depreciation allowance for certain qualified property acquired

and placed in service after January 19, 2025 (including long

production period property and certain aircraft) and certain

specified plants bearing fruits and nuts planted or grafted

after January 19, 2025. However, you can elect to take a 40%

special depreciation allowance (60% for long production

period property and certain aircraft) for this property during

first tax year ending after January 19, 2025, instead of taking

the 100% special depreciation allowance. See Certain

qualified property acquired after January 19, 2025, and

Certain plants bearing fruits and nuts planted or grafted after

January 19, 2025, later.

Special depreciation allowance for qualified production

property. P.L. 119-21 added new section 168(n) which

allows a special depreciation allowance for qualified

production property. Qualified production property placed in

service after July 4, 2025, the construction of which began or

was acquired after January 19, 2025, is eligible for a 100%

special depreciation allowance. See Qualified Production

Property, later.

Solar or wind energy property no longer 5-year property. Section 70509 of P.L. 119-21 removed solar or wind

energy property from the definition of 5-year property under

section 168(e)(3)(B)(vi). This applies to solar or wind energy

property beginning construction after December 31, 2024.

Domestic research and experimental expenditures. P.L.

119-21 added new section 174A which reinstates the

deduction of domestic research or experimental expenditures

paid or incurred in tax years beginning in 2025, as a current

year business expense. However, you can elect to capitalize

and amortize these expenditures equally over 60 months or

more or elect to amortize them over a 10-year period. You

must capitalize and amortize research or experimental

expenditures attributable to foreign research paid or incurred

in tax years beginning in 2025, ratably over a 15-year period.

See Research and experimental expenditures (section 174

and 174A), later.

General Instructions

Purpose of Form

Use Form 4562 to:

• Claim your deduction for depreciation and amortization,

• Make the election under section 179 to expense certain

property, and

• Provide information on the business/investment use of

automobiles and other listed property.

Note: Do not use Form 4562 to claim the deduction for

energy efficient commercial buildings under section 179D.

Instructions for Form 4562 (2025) Catalog Number 12907Y

Department of the Treasury Internal Revenue Service www.irs.gov

Instead use Form 7205, Energy Efficient Commercial

Buildings Deduction. See Form 7205 and the related

instructions for more information.

Who Must File

Except as otherwise noted, complete and file Form 4562 if

you are claiming any of the following.

• Depreciation for property placed in service during the 2025

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 2025 tax year.

If you are an employee deducting job-related vehicle

expenses using either the standard mileage rate or actual

expenses, use Form 2106, Employee Business Expenses, for

this purpose.

File a separate Form 4562 for each business or activity on

your return for which Form 4562 is required. If you need more

space, attach additional sheets. However, complete only one

Part I in its entirety when computing your section 179

expense deduction. See the instructions for line 12, later.

Additional Information

For more information about depreciation and amortization

(including information on listed property), see the following.

• Pub. 463, Travel, Gift, and Car Expenses.

• Pub. 534, Depreciating Property Placed in Service Before

1987.

• Pub. 551, Basis of Assets.

• Pub. 946, How To Depreciate Property.

Definitions

Depreciation

Depreciation is the annual deduction that allows you to

recover the cost or other basis of your business or investment

property over a certain number of years. Depreciation starts

when you first use the property in your business or for the

production of income. It ends when you either take the

property out of service, deduct all your depreciable cost or

basis, or no longer use the property in your business or for

the production of income.

Generally, you can depreciate:

• Tangible property such as buildings, machinery, vehicles,

furniture, and equipment; and

• Intangible property such as patents, copyrights, and

computer software.

Exception. You cannot depreciate land.

Accelerated Cost Recovery System

The Accelerated Cost Recovery System (ACRS) applies to

property first used before 1987. It is the name given for the

tax rules that allow a taxpayer to recover through depreciation

deductions the cost of property used in a trade or business or

to produce income. These rules are mandatory and generally

apply to tangible property placed in service after 1980 and

before 1987. If you placed property in service during this

period, you must continue to figure your depreciation under

ACRS.

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ACRS consists of accelerated depreciation methods and

an alternate ACRS method that could have been elected.

The alternate ACRS method used a recovery percentage

based on a modified straight line method. See the

instructions for line 16 for more information. For a complete

discussion of ACRS, see Pub. 534.

Modified Accelerated Cost Recovery System

The Modified Accelerated Cost Recovery System (MACRS)

is the current method of accelerated asset depreciation

required by the tax code. Under MACRS, all assets are

divided into classes which dictate the number of years over

which an asset’s cost will be recovered. Each MACRS class

has a predetermined schedule which determines the

percentage of the asset’s cost which is depreciated each

year. For more information, see Part III. MACRS

Depreciation, later. For a complete discussion of MACRS,

see chapter 4 of Pub. 946.

Section 179 Property

Section 179 property is property that you acquire by

purchase for use in the active conduct of your trade or

business, and is one of the following.

• Qualified section 179 real property. For more information,

see Special rules for qualified section 179 real property, later.

• Tangible personal property, including cellular telephones,

similar telecommunications equipment, and air conditioning

or heating units (for example, portable air conditioners or

heaters). Also, tangible personal property may include

certain property used mainly to furnish lodging or in

connection with the furnishing of lodging (except as provided

in section 50(b)(2)).

• Other tangible property (except buildings and their

structural components) used as:

1. An integral part of manufacturing, production, or

extraction, or of furnishing transportation, communications,

electricity, gas, water, or sewage disposal services;

2. A research facility used in connection with any of the

activities in (1) above; or

3. A facility used in connection with any of the activities in

(1) above for the bulk storage of fungible commodities.

• Single purpose agricultural (livestock) or horticultural

structures.

• Storage facilities (except buildings and their structural

components) used in connection with distributing petroleum

or any primary product of petroleum.

• Off-the-shelf computer software.

Section 179 property does not include the following.

• Property held for investment (section 212 property).

• Property used mainly outside the United States (except for

property described in section 168(g)(4)).

• Property used by a tax-exempt organization (other than a

section 521 farmers’ cooperative) unless the property is used

mainly in a taxable unrelated trade or business.

• Property used by a governmental unit or foreign person or

entity (except for property used under a lease with a term of

less than 6 months).

See the instructions for Part I and Pub. 946.

Special rules for qualified section 179 real property. You

can elect to treat certain qualified real property placed in

service during the tax year as section 179 property. See

Election for certain qualified section 179 real property under

Part I, later, for information on how to make this election. If the

Instructions for Form 4562 (2025)

election is made, the term “section 179 property” will include

any qualified real property which is:

• Qualified improvement property as described in section

168(e)(6), and

• Any of the following improvements to nonresidential real

property placed in service after the date the nonresidential

real property was first placed in service.

1. Roofs.

2. Heating, ventilation, and air-conditioning property.

3. Fire protection and alarm systems.

4. Security systems.

This property is considered “qualified section 179 real

property.”

A deduction attributable to qualified section 179 real

property which is disallowed under the trade or business

income limitation (see Business Income Limit in chapter 2 of

Pub. 946) for 2025 can be carried over to 2026. Thus, the

amount of any 2025 disallowed section 179 expense

deduction attributable to qualified section 179 real property

will be reported on line 13 of Form 4562.

Amortization

Amortization is similar to the straight line method of

depreciation in that an annual deduction is allowed to recover

certain costs over a fixed time period. You can amortize such

items as the costs of starting a business, goodwill, and

certain other intangibles. See the instructions for Part VI.

Listed Property

Listed property generally includes the following.

• Passenger automobiles weighing 6,000 pounds or less.

See Limits for passenger automobiles, later.

• Any other property used for transportation if the nature of

the property lends itself to personal use, such as

motorcycles, pickup trucks, SUVs, aircraft, etc.

• Any property used for entertainment or recreational

purposes (such as photographic, phonographic,

communication, and video recording equipment).

Exceptions. Listed property does not include:

1. Photographic, phonographic, communication, or video

equipment used exclusively in a taxpayer’s trade or business

or at the taxpayer’s regular business establishment;

2. Any computer or peripheral equipment used

exclusively at a regular business establishment and owned or

leased by the person operating the establishment;

3. An ambulance, hearse, or vehicle used for transporting

persons or property for compensation or hire; or

4. Any truck or van placed in service after July 6, 2003,

that is a qualified nonpersonal use vehicle.

For purposes of the exceptions above, a portion of the

taxpayer’s home is treated as a regular business

establishment only if that portion meets the requirements for

deducting expenses attributable to the business use of a

home. However, for any property listed in (1) above, the

regular business establishment of an employee is their

employer’s regular business establishment.

Commuting

Generally, commuting is defined as travel between your

home and a work location. However, travel that meets any of

the following conditions is not commuting.

Instructions for Form 4562 (2025)

• You have at least one regular work location away from your

home and the travel is to a temporary work location in the

same trade or business, regardless of the distance.

Generally, a temporary work location is one where your

employment is expected to last 1 year or less. See Pub. 463

for details.

• The travel is to a temporary work location outside the

metropolitan area where you live and normally work.

• Your home is your principal place of business for purposes

of deducting expenses for business use of your home and

the travel is to another work location in the same trade or

business, regardless of whether that location is regular or

temporary and regardless of distance.

Alternative Minimum Tax (AMT)

Depreciation may be an adjustment for the AMT. However, no

adjustment applies in several instances. See Form 6251,

Alternative Minimum Tax—Individuals; Schedule I (Form

1041), Alternative Minimum Tax—Estates and Trusts; and the

related instructions.

Recordkeeping

Except for Part V (relating to listed property), the IRS does

not require you to submit detailed information with your return

on the depreciation of assets placed in service in previous

tax years. However, the information needed to compute your

depreciation deduction (basis, method, etc.) must be part of

your permanent records.

Tip: You may use the Depreciation Worksheet, later, to assist

you in maintaining depreciation records. However, the

worksheet is designed only for federal income tax purposes.

You may need to keep additional records for accounting and

state income tax purposes.

Specific Instructions

Part I. Election To Expense Certain

Property Under

Section 179

Note: An estate or trust cannot make this election.

You can elect to expense part or all of the cost of section

179 property (defined earlier) that you placed in service

during the tax year and used predominantly (more than 50%)

in your trade or business.

However, for taxpayers other than a corporation, this

election does not apply to any section 179 property you

purchased and leased to others unless:

• You manufactured or produced the property; or

• The term of the lease is less than 50% of the property’s

class life and, for the first 12 months after the property is

transferred to the lessee, the deductions related to the

property allowed to you as trade or business expenses

(except rents and reimbursed amounts) are more than 15%

of the rental income from the property.

Election. You must make the election on Form 4562 filed

with either:

• The original return you file for the tax year the property was

placed in service (whether or not you file your return on time),

or

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Keep for Your Records

Worksheet 1. Worksheet for Lines 1, 2, and 3

Maximum section 179 limitation calculation.

1.* Enter total cost of section 179 property (including qualified section 179 real property) placed in service during the tax year

beginning in 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. The maximum section 179 deduction limitation for 2025

..............................................

$2,500,000

3. Enter the smaller of line 1 or line 2 here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter the amount from line 3 here and on Form 4562, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Maximum threshold cost of section 179 property before reduction in limitation calculation.

5. Enter the amount from line 1 here and on Form 4562, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Base maximum threshold cost of section 179 property before reduction in limitation for 2025. Enter this amount on Form

4562, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$4,000,000

Maximum elected cost for Form 4562, lines 6 and 7, column (c).

7. Enter the smaller of line 1 or line 4. The total amount you enter on Form 4562, lines 6 and 7, column (c), cannot

exceed this amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* For line 1 of this worksheet, include the total amount of eligible section 179 property (including qualified section 179 real property), not just the amount for which you are

making the election. See the instructions for line 2.

• An amended return filed within the time prescribed by law

for the applicable tax year. The election made on an

amended return must specify the item of section 179

property to which the election applies and the part of the cost

of each such item to be taken into account. The amended

return must also include any resulting adjustments to taxable

income.

Election for certain qualified section 179 real

property. You can elect to expense certain qualified real

property that you first placed in service as section 179

property for tax years beginning in 2025. For more

information, see Election, earlier.

Revocation. The election (or any specification made in the

election) can be revoked without obtaining IRS approval by

filing an amended return. The amended return must be filed

within the time prescribed by law for the applicable tax year.

The amended return must include any resulting adjustments

to taxable income or to the tax liability (for example, allowable

depreciation in that tax year for the item of section 179

property to which the revocation pertains). For more

information and examples, see Regulations sections

1.179-5(c)(3) and (c)(4). Once made, the revocation is

irrevocable.

benefit of the section 179 expense deduction must be

reported as “other income” on your return.

If any qualified section 179 disaster assistance property

ceases to be used in the applicable federally declared

disaster area in any year after you claim the increased

section 179 expense deduction for that property, the benefit

of the increased section 179 expense deduction must be

reported as “other income” on your return. Similar rules apply

if qualified Liberty Zone property ceases to be used in the

Liberty Zone, if qualified section 179 GO Zone property

ceases to be used in the GO Zone, if qualified section 179

Recovery Assistance property ceases to be used in the

Recovery Assistance area, if qualified empowerment zone

property ceases to be used in an empowerment zone by an

enterprise zone business, or if qualified renewal property

ceases to be used in a renewal community by a renewal

community business in any year after you claim the increased

section 179 expense deduction.

Line 2

Caution: If you elect to expense section 179 property, you

must reduce the amount on which you figure your

depreciation or amortization deduction (including any special

depreciation allowance) by the section 179 expense

deduction.

Enter the total cost of all section 179 property you placed in

service during the tax year (including the total cost of

qualified real property that you elect to treat as section 179

property). Also, include the cost of the following.

• Any listed property from Part V.

• Any property placed in service by your spouse, even if you

are filing a separate return. This includes qualified section

179 real property that your spouse made the election to treat

as section 179 property for 2025.

Line 1

Line 3

Generally, the maximum section 179 expense deduction is

$2,500,000 for section 179 property (including qualified

section 179 real property) placed in service during the tax

year beginning in 2025.

Tip: You can use Worksheet 1 to assist you in determining

the amount to enter on line 1.

Recapture rule. If the section 179 property is not used

predominantly (more than 50%) in your trade or business at

any time before the end of the property’s recovery period, the

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The amount of section 179 property for which you can make

the election is limited to the maximum dollar amount on

line 1. This amount is reduced if the cost of all section 179

property placed in service in 2025 is more than $4,000,000.

For a partnership, these limitations apply to the

partnership and each partner. For an S corporation, these

limitations apply to the S corporation and each shareholder.

For a controlled group, all component members are treated

as one taxpayer.

Instructions for Form 4562 (2025)

Line 5

If line 5 is zero, you cannot elect to expense any section 179

property. In this case, skip lines 6 through 11, enter zero on

line 12, and enter the carryover of any disallowed deduction

from 2024 (which does not include amounts attributable to

qualified section 179 real property) on line 13.

See Special rules for qualified section 179 real property,

earlier.

If you are married filing separately, you and your spouse

must allocate the dollar limitation for the tax year. To do so,

multiply the total limitation that you would otherwise enter on

line 5 by 50% (0.50), unless you both elect a different

allocation. If you both elect a different allocation, multiply the

total limitation by the percentage elected. The sum of the

percentages you and your spouse elect must equal 100%.

Do not enter on line 5 more than your share of the total

dollar limitation.

Line 6

Do not include any listed property on line 6. Enter the elected

section 179 cost of listed property in column (i) of line 26.

Column (a)—Description of property. Enter a brief

description of the property you elect to expense (for example,

truck, office furniture, qualified improvement property, roof,

etc.).

Column (b)—Cost (business use only). Enter the cost of

the property. If you acquired the property through a trade-in,

do not include any carryover basis of the property traded in.

Include only the excess of the cost of the property over the

value of the property traded in.

Column (c)—Elected cost. Enter the amount you elect to

expense. You can depreciate the amount you do not

expense. See the line 19 and line 20 instructions.

To report your share of a section 179 expense deduction

from a partnership or an S corporation, enter “from

Schedule K-1 (Form 1065)” or “from Schedule K-1 (Form

1120-S)” across columns (a) and (b).

Line 7

Enter the amount that you elected to expense for listed

property (defined earlier) on line 29 here. For more

information, see Part V—Listed Property, later.

Line 10

The carryover of disallowed deduction from 2024 is the

amount of section 179 property, if any, you elected to

expense in previous years that was not allowed as a

deduction because of the business income limitation. If you

filed Form 4562 for 2024, enter the amount from line 13 of

your 2024 Form 4562.

Line 11

The total cost you can deduct is limited to your taxable

income from the active conduct of a trade or business during

the year. You are considered to actively conduct a trade or

business only if you meaningfully participate in its

management or operations. A mere passive investor is not

considered to actively conduct a trade or business.

Note: If you have to apply another Code section that has a

limitation based on taxable income, see Pub. 946 for rules on

how to apply the business income limitation for the section

179 expense deduction.

Instructions for Form 4562 (2025)

Individuals. Enter the smaller of line 5 or the total taxable

income from any trade or business you actively conducted,

computed without regard to any section 179 expense

deduction, the deduction for one-half of self-employment

taxes under section 164(f), or any net operating loss

deduction. Also, include all wages, salaries, tips, and other

compensation you earned as an employee (from Form 1040,

line 1a). Do not reduce this amount by unreimbursed

employee business expenses. If you are married filing a joint

return, combine the total taxable incomes for you and your

spouse.

Partnerships. Enter the smaller of line 5 or the partnership’s

total items of income and expense, described in section

702(a), from any trade or business the partnership actively

conducted (other than credits, tax-exempt income, the

section 179 expense deduction, and guaranteed payments

under section 707(c)).

S corporations. Enter the smaller of line 5 or the

corporation’s total items of income and expense described in

section 1366(a) from any trade or business the corporation

actively conducted (other than credits, tax-exempt income,

the section 179 expense deduction, and the deduction for

compensation paid to the corporation’s

shareholder-employees).

Corporations other than S corporations. Enter the

smaller of line 5 or the corporation’s taxable income before

the section 179 expense deduction, net operating loss

deduction, and special deductions (excluding items not

derived from a trade or business actively conducted by the

corporation).

Line 12

The limitations on lines 5 and 11 apply to the taxpayer, and

not to each separate business or activity. Therefore, if you

have more than one business or activity, you may allocate

your allowable section 179 expense deduction among them.

To do so, enter “Summary” at the top of Part I of the

separate Form 4562 you are completing for the total amounts

from all businesses or activities. Do not complete the rest of

that form. On line 12 of the Form 4562 you prepare for each

separate business or activity, enter the amount allocated to

the business or activity from the “Summary.” No other entry is

required in Part I of the separate Form 4562 prepared for

each business or activity.

Part II. Special Depreciation

Allowance and Other Depreciation

Line 14

For qualified property (defined later) placed in service during

the tax year, you may be able to take an additional special

depreciation allowance. The special depreciation allowance

applies only for the first year the property is placed in service.

The allowance is an additional deduction you can take after

any section 179 expense deduction and before you figure

regular depreciation under MACRS.

Qualified property. You can take the special depreciation

allowance for certain qualified property acquired after

January 19, 2025; certain qualified property acquired after

September 27, 2017, and before January 20, 2025; certain

plants bearing fruits and nuts planted or grafted after January

19, 2025; certain plants bearing fruits and nuts planted or

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grafted before January 20, 2025; qualified reuse and

recycling property; and qualified production property.

Certain qualified property acquired after January 19,

2025. Certain qualified property (defined below) acquired

after January 19, 2025, is eligible for a 100% special

depreciation allowance. However, you can elect to take a

40% special depreciation allowance for certain qualified

property (60% for property with a long production period and

certain aircraft), instead of the 100% special depreciation

allowance in the first tax year ending after January 19, 2025.

Qualified property is:

• Tangible property depreciated under MACRS with a

recovery period of 20 years or less;

• Computer software defined in and depreciated under

section 167(f)(1);

• Water utility property (see 25-year property, later); and

• Qualified film, television, and live theatrical productions, as

defined in sections 181(d) and (e). Qualified sound recording

productions, as defined in section 181(f), of which production

commenced in tax years ending after July 4, 2025.

Qualified property can be either new property or certain

used property.

See Pub. 946 for more information. Also, see section

168(k) as amended by section 70301 and 70434(g) of P.L.

119-21.

Certain qualified property acquired after September

27, 2017, and before January 20, 2025. Certain qualified

property (defined below) acquired after September 27, 2017,

and before January 20, 2025 (other than property with a long

production period and certain aircraft), is limited to a special

depreciation allowance of 40% of the depreciable basis of the

property. Property with a long production period and certain

aircraft acquired after September 27, 2017, and before

January 20, 2025, is eligible for a special depreciation

allowance of 60% of the depreciable basis of the property.

Qualified property is:

• Tangible property depreciated under MACRS with a

recovery period of 20 years or less;

• Computer software defined in and depreciated under

section 167(f)(1);

• Water utility property (see 25-year property, later); and

• Qualified film, television, and live theatrical productions, as

defined in sections 181(d) and (e). Qualified sound recording

productions, as defined in section 181(f), of which production

commenced in tax years ending after July 4, 2025.

Qualified property must also be acquired before January

20, 2025, and placed in service before January 1, 2026, and

can be either new property or certain used property.

See Pub. 946 for more information. Also, see section

168(k), as in effect before the enactment of section 70301

and 70434(g) of P.L. 119-21, and Regulations sections

1.168(k)-2 and 1.1502-68.

Certain plants bearing fruits and nuts planted or

grafted after January 19, 2025. You can elect to claim a

100% special depreciation allowance for the adjusted basis

of certain specified plants (defined later) bearing fruits and

nuts planted or grafted after January 19, 2025.

A specified plant is:

• Any tree or vine that bears fruits or nuts, and

• Any other plant that will have more than one yield of fruits

or nuts and generally has a pre-productive period of more

than 2 years from planting or grafting to the time it begins

bearing fruits or nuts.

6

Any property planted or grafted outside the United States

does not qualify as a specified plant.

If you elect to claim the special depreciation allowance for

any specified plant, the special depreciation allowance only

applies for the first tax year in which the plant is planted or

grafted. The plant will not be treated as qualified property

eligible for the special depreciation allowance in the

subsequent tax year in which it is placed in service.

To make the election, attach a statement to your timely

filed return (including extensions) for the tax year in which

you plant or graft the specified plant(s) indicating you are

electing to apply section 168(k)(5) and identifying the

specified plant(s) for which you are making the election.

Once made, the election cannot be revoked without IRS

consent. See section 168(k)(5).

Note: For the first tax year ending after January 19, 2025,

you can elect to take a 40% special depreciation allowance

(instead of 100%) for certain specified plants planted or

grafted after January 19, 2025.

Certain plants bearing fruits and nuts planted or

grafted before January 20, 2025. You can elect to claim a

40% special depreciation allowance for the adjusted basis of

certain specified plants (defined later) bearing fruits and nuts

planted or grafted after December 31, 2024, and before

January 20, 2025.

A specified plant is:

• Any tree or vine that bears fruits or nuts, and

• Any other plant that will have more than one yield of fruits

or nuts and generally has a pre-productive period of more

than 2 years from planting or grafting to the time it begins

bearing fruits or nuts.

Any property planted or grafted outside the United States

does not qualify as a specified plant.

If you elect to claim the special depreciation allowance for

any specified plant, the special depreciation allowance

applies only for the tax year in which the plant is planted or

grafted. The plant will not be treated as qualified property

eligible for the special depreciation allowance in the

subsequent tax year in which it is placed in service.

To make the election, attach a statement to your timely

filed return (including extensions) for the tax year in which

you plant or graft the specified plant(s) indicating you are

electing to apply section 168(k)(5) and identifying the

specified plant(s) for which you are making the election.

Once made, the election cannot be revoked without IRS

consent.

Qualified reuse and recycling property. Certain

qualified reuse and recycling property (defined later) placed

in service after August 31, 2008, is eligible for a 50% special

depreciation allowance.

Qualified reuse and recycling property includes any

machinery and equipment (not including buildings or real

estate), along with any appurtenance, that is used exclusively

to collect, distribute, or recycle qualified reuse and recyclable

materials. This includes software necessary to operate such

equipment. See section 168(m)(3) for more information.

Qualified reuse and recycling property must also meet all

of the following tests.

• The property must be depreciated under MACRS.

• The property must have a useful life of at least 5 years.

• You must have acquired the property by purchase after

August 31, 2008. If a binding contract to acquire the property

Instructions for Form 4562 (2025)

existed before September 1, 2008, the property does not

qualify.

• The property must be placed in service after August 31,

2008.

• The original use of the property must begin with you after

August 31, 2008.

• For self-constructed property, special rules apply. See

section 168(m)(2)(C).

Qualified reuse and recycling property does not include

rolling stock or other equipment used to transport reuse and

recyclable materials or any property to which section 168(g)

or (k) applies.

Exceptions. Qualified property does not include:

• Listed property used 50% or less in a qualified business

use (as defined in the instructions for lines 26 and 27);

• Any property required to be depreciated under the

Alternative Depreciation System (ADS) (that is, not property

for which you elected to use ADS);

• Property placed in service, or planted or grafted, as

applicable, and disposed of in the same tax year;

• Property converted from business or income-producing

use to personal use in the same tax year it is acquired;

• Property described in section 168(k)(9)(A) or 168(k)(9)(B);

or

• Property for which you elected not to claim any special

depreciation allowance.

See sections 168(k) and 168(m) for additional information.

Also, see Pub. 946.

How to figure the allowance. Figure the special

depreciation allowance by multiplying the depreciable basis

of the property by the applicable percentage.

For qualified production property (discussed later), figure

the special depreciation allowance by designating the

amount of the depreciable basis of the eligible property that

you wish to treat as qualified production property.

To figure the depreciable basis, subtract from the

business/investment portion of the cost or other basis of the

property any credits and deductions allocable to the property.

The following are examples of some credits and deductions

that reduce the depreciable basis.

• Section 179 expense deduction.

• Deduction for removal of barriers to the disabled and the

elderly.

• Disabled access credit.

• Enhanced oil recovery credit.

• Credit for employer-provided childcare facilities and

services.

• Basis adjustment to investment credit property under

section 50(c).

• Section 181 expense deduction.

For additional credits and deductions that affect the

depreciable basis, see section 1016. Also, see Pub. 946.

Note: If you acquired qualified property through a like-kind

exchange or involuntary conversion, and the qualified

property is new property, the carryover basis and any excess

basis of the acquired property is eligible for the special

depreciation allowance.

Generally, a like-kind exchange after December 31, 2017,

is an exchange of real property.

If you acquired qualified property through a like-kind

exchange or involuntary conversion, and the qualified

property is used property, only the excess basis of the

Instructions for Form 4562 (2025)

acquired property is eligible for the special depreciation

allowance.

Caution: If you take the special depreciation allowance, you

must reduce the amount on which you figure your regular

depreciation or amortization deduction by the amount

deducted. Also, you will not have any AMT adjustment for

depreciation for the qualified property.

Election out. You can elect, for any class of property, to not

deduct any special depreciation allowance for all such

property in such class placed in service during the tax year.

To make an election, attach a statement to your timely filed

return (including extensions) indicating the class of property

for which you are making the election and that, for such class,

you are not to claim any special depreciation allowance.

The election must be made separately by each person

owning qualified property (for example, by the partnership, by

the S corporation, or for each member of a consolidated

group by the common parent of the group).

If you timely filed your return without making an election,

you can still make the election by filing an amended return

within 6 months of the due date of the return (excluding

extensions). Enter “Filed pursuant to section 301.9100-2” on

the amended return.

Once made, the election cannot be revoked without IRS

consent.

Note: If you elect to not have any special depreciation

allowance apply, the property placed in service during the tax

year will not be subject to an AMT adjustment for

depreciation.

Recapture. When you dispose of property for which you

claimed a special depreciation allowance, any gain on the

disposition is generally recaptured (included in income) as

ordinary income up to the amount of the depreciation

previously allowed or allowable for the property, including the

special depreciation allowance. For more information, see

MACRS recapture, later. If qualified GO Zone property

(including specified GO Zone property) ceases to be

qualified GO Zone property, if qualified Recovery Assistance

property ceases to be qualified Recovery Assistance

property, if qualified cellulosic biomass ethanol plant property

ceases to be qualified cellulosic biomass ethanol plant

property, if qualified second generation biofuel plant property

ceases to be qualified second generation biofuel plant

property, if qualified disaster assistance property ceases to

be qualified disaster assistance property, or qualified

production property ceases to be qualified production

property in any year after the year you claim the special

depreciation allowance, the excess benefit you received from

claiming the special depreciation allowance must be

recaptured as ordinary income. For information on

depreciation recapture, see Pub. 946. Also, see Notice

2008-25, 2008-9 I.R.B. 484, available at IRS.gov/irb/

2008-09_IRB/ar10.html, for additional guidance on recapture

of qualified GO Zone property.

Qualified Production Property

You can elect to take a special depreciation allowance for

qualified production property (QPP) by designating up to

100% of the depreciable basis of eligible property as QPP.

Your property is eligible property if it is all of the following.

• Nonresidential real property.

7

• Used as an integral part of a qualified production activity

(described below).

• Constructed beginning after January 19, 2025, and before

January 1, 2029.

• Placed in service in the United States or a United States

territory, after July 4, 2025, and before January 1, 2031.

Eligible property can be either new property or certain

used property.

Qualified production activity. A qualified production

activity (QPA) is the manufacturing, production, or refining, of

a product of tangible personal property, that results in a

substantial transformation of the property comprising the

product. Additionally, certain activities that do not themselves

result in a substantial transformation of the property

comprising the product may still be a QPA if they are

essential to the quantity or quality of the main activity’s

output. If you lease property to someone else that conducts a

QPA within it, you generally do not qualify for the special

depreciation allowance.

Note: If only a portion of a building is used for a QPA, the

depreciable basis of eligible property may be less than the

depreciable basis of the overall property (i.e., the depreciable

basis of the eligible property you may designate as QPP may

be less than the depreciable basis of the building in which the

QPA is conducted).

Excepted property. Eligible property does not include any

of the following.

• Property placed in service and disposed of in the same tax

year, including property converted from business use to

personal use in the same tax year the property is placed in

service.

• Property required to be depreciated under the Alternative

Depreciation System (ADS).

• Ineligible property, which generally includes space used for

activities other than a QPA, such as offices, research

activities, and storage of finished goods.

How to elect and designate qualified production property. To make the election and designation, attach a statement

to your timely filed return (including extensions) for the tax

year in which you place the eligible property in service,

containing the information listed in section 7.02 of Notice

2026-16. The election and designation, once made, cannot

be revoked except in extraordinary circumstances.

For more information on eligible property and on how to

make an election to treat eligible property as QPP, see Notice

2026-16, 2026-11 I.R.B. 685, available at IRS.gov/irb/

2026-11_IRB#NOT-2026-16. Also, see section 168(n).

Recapture of allowance for qualified production property. Note that if, within 10-calendar years of placing QPP in

service, you cease using the QPP as an integral part of a

QPA and begin using it in another productive use, you will

generally recapture the entire allowance as ordinary income,

even if you do not dispose of the QPP. For additional

guidance, see Notice 2026-16.

Line 15

Report on this line depreciation for property that you elect to

depreciate under the unit-of-production method or any other

method not based on a term of years (other than the

retirement-replacement-betterment method).

Attach a separate sheet showing:

8

• A description of the property and the depreciation method

you elect that excludes the property from MACRS or ACRS;

and

• The depreciable basis (cost or other basis reduced, if

applicable, by salvage value, any section 179 expense

deduction, deduction for removal of barriers to the disabled

and the elderly, disabled access credit, enhanced oil

recovery credit, credit for employer-provided childcare

facilities and services, any special depreciation allowance,

and any other applicable deduction or credit).

For additional credits and deductions that may affect the

depreciable basis, see section 1016. Also, see section 50(c)

to determine the basis adjustment for investment credit

property.

Line 16

Enter the total depreciation you are claiming for the following

types of property (except listed property and property subject

to a section 168(f)(1) election).

• ACRS property (pre-1987 rules). See Pub. 534.

• Property placed in service before 1981.

• Certain public utility property which does not meet certain

normalization requirements.

• Certain property acquired from related persons.

• Property acquired in certain nonrecognition transactions.

• Certain sound recordings, movies, and videotapes.

• Property depreciated under the income forecast method.

The use of the income forecast method is limited to motion

picture films, videotapes, sound recordings, copyrights,

books, and patents.

Caution: If you take the special depreciation allowance for a

qualified film, television, live theatrical or sound recording

production, you must reduce the amount on which you figure

your regular depreciation deduction by the amount deducted.

If you use the income forecast method for any property

placed in service after September 13, 1995, you may owe

interest or be entitled to a refund for the 3rd and 10th tax

years beginning after the tax year the property was placed in

service. For details, see Form 8866, Interest Computation

Under the Look-Back Method for Property Depreciated

Under the Income Forecast Method.

For property placed in service in the current tax year, you

can either include certain participations and residuals in the

adjusted basis of the property or deduct these amounts when

paid. See section 167(g)(7). To elect a method for the

treatment of participations and residuals, attach a statement

to the timely filed return (including extensions) for the tax year

the income forecast property is placed in service and provide

a description of the property to which the participations and

residuals relate, the date the property was placed in service,

and how you elect to treat the participations and residuals for

that property. You cannot use this method to depreciate any

amortizable section 197 intangible. For more details, see the

instructions for section 197 intangibles, later.

• Intangible property, other than section 197 intangibles,

including the following.

1. Computer software. Use the straight line method over

36 months. A longer period may apply to software leased

under a lease agreement entered into after March 12, 2004,

to a tax-exempt organization, governmental unit, or foreign

person or entity (other than a partnership). See section 167(f)

(1)(C).

Instructions for Form 4562 (2025)

Caution: If you elect the section 179 expense deduction or

take the special depreciation allowance for qualified

computer software, you must reduce the amount on which

you figure your regular depreciation deduction by the amount

deducted.

2. Any right to receive tangible property or services under

a contract or granted by a governmental unit (not acquired as

part of a business).

3. Any interest in a patent or copyright not acquired as

part of a business.

4. Residential mortgage servicing rights. Use the straight

line method over 108 months.

5. Other intangible assets with a limited useful life that

cannot be estimated with reasonable accuracy. Generally,

use the straight line method over 15 years. See Regulations

section 1.167(a)-3(b) for details and exceptions.

Caution: Prior years’ depreciation, plus current year’s

depreciation, can never exceed the depreciable basis of the

property.

Part III. MACRS Depreciation

The term “Modified Accelerated Cost Recovery System”

(MACRS) includes the General Depreciation System (GDS)

and the Alternative Depreciation System (ADS). Generally,

MACRS is used to depreciate any tangible property placed in

service after 1986. However, MACRS does not apply to films,

videotapes, and sound recordings. For more details and

exceptions, see Pub. 946.

Section A

Line 17

For tangible property placed in service in tax years beginning

before 2025 and depreciated under MACRS (“MACRS

asset”), enter the deductions for the current year. To figure

the deductions, see the instructions for line 19, column (g).

Note: If you dispose of a portion of a MACRS asset and are

required to (or elect to) take the basis of the asset into

account, you must reduce the basis and depreciation reserve

of the MACRS asset by the basis and depreciation reserve

attributable to the disposed portion as of the first day of the

tax year before you compute the depreciation deduction for

the current year. To figure the depreciation deduction for the

remaining MACRS asset and the disposed portion, see the

instructions for line 19, column (g). For more information, see

Regulations section 1.168(i)-8.

Line 18

To simplify the computation of MACRS depreciation, you can

elect to group assets into one or more general asset

accounts. The assets in each general asset account are

depreciated as a single asset.

Each general asset account must include only assets that

were placed in service during the same tax year and that

have the same depreciation method, recovery period, and

convention. However, an asset cannot be included in a

general asset account if the asset is used both for personal

purposes and business/investment purposes.

When an asset in an account is disposed of, the amount

realized must generally be recognized as ordinary income.

The unadjusted depreciable basis and depreciation reserve

Instructions for Form 4562 (2025)

of the general asset account are not affected as a result of a

disposition.

Special rules apply to passenger automobiles, assets

generating foreign source income, assets converted to

personal use, certain asset dispositions, and like-kind

exchanges or involuntary conversions of property in a general

asset account. For more details, see Regulations section

1.168(i)-1 (as in effect for tax years beginning on or after

January 1, 2014).

To make the election, check the box on line 18. You must

make the election on your return filed no later than the due

date (including extensions) for the tax year in which the

assets included in the general asset account were placed in

service. Once made, the election is irrevocable and applies

to the tax year for which the election is made and all later tax

years.

For more information on depreciating property in a general

asset account, see Pub. 946.

Section B

Property acquired in a like-kind exchange or involuntary

conversion. Generally, you must depreciate the carryover

basis of property you acquire in a like-kind exchange or

involuntary conversion during the current tax year over the

remaining recovery period of the property exchanged or

involuntarily converted. Use the same depreciation method

and convention that was used for the exchanged or

involuntarily converted property. Treat any excess basis as

newly placed in service property. Figure depreciation

separately for the carryover basis and the excess basis, if

any.

These rules apply only to acquired property with the same

or a shorter recovery period or the same or a more

accelerated depreciation method than the property

exchanged or involuntarily converted. For additional rules,

see Regulations section 1.168(i)-6(c) and Pub. 946.

Election out. Instead of using the above rules, you can

elect, for depreciation purposes, to treat the adjusted basis of

the exchanged property as if it was disposed of at the time of

the exchange or involuntary conversion. Generally, treat the

carryover basis and excess basis, if any, for the acquired

property as if placed in service on the date you acquired it.

The depreciable basis of the new property is the adjusted

basis of the exchanged or involuntarily converted property

plus any additional amount paid for it. See Regulations

section 1.168(i)-6(i).

To make the election, figure the depreciation deduction for

the new property in Part III. For listed property, use Part V.

Attach a statement indicating “Election made under section

1.168(i)-6(i)” for each property involved in the exchange or

involuntary conversion. The election must be made

separately by each person acquiring replacement property

(for example, by the partnership, by the S corporation, or by

the common parent of a consolidated group). The election

must be made on your timely filed return (including

extensions). Once made, the election cannot be revoked

without IRS consent.

Caution: Generally, a like-kind exchange after December

31, 2017, is an exchange of real property.

Lines 19a Through 19j

Use lines 19a through 19j only for assets placed in service

during the tax year beginning in 2025 and depreciated under

9

GDS, except for automobiles and other listed property (which

are reported in Part V).

Note: If you elect not to claim the special depreciation

allowance for qualified production property, include the

deduction for MACRS depreciation for this property in the

total reported on line 19j and enter “See attachment” in the

bottom margin of the form. On the attached statement

identify the property as “QPP” and indicate the amount of

MACRS depreciation claimed for this property. See Qualified

Production Property, earlier, for details on which property

qualifies as qualified production property.

Column (a)—Classification of property. Sort the property

you acquired and placed in service during the tax year

beginning in 2025 according to its classification (3-year

property, 5-year property, etc.) as shown in column (a) of

lines 19a through 19j. The classifications for some property

are shown below. For property not shown, see Determining

the classification, later.

3-year property includes the following.

• A race horse that is more than 2 years old at the time it is

placed in service.

• Any horse (other than a race horse) that is more than 12

years old at the time it is placed in service.

• Any qualified rent-to-own property (as defined in section

168(i)(14)).

5-year property includes the following.

• Automobiles.

• Light general purpose trucks.

• Typewriters, calculators, copiers, and duplicating

equipment.

• Any semi-conductor manufacturing equipment.

• Any qualified technological equipment.

• Any section 1245 property used in connection with

research and experimentation.

• Certain energy property specified in section 168(e)(3)(B)

(vi).

• Appliances, carpets, furniture, etc., used in a rental real

estate activity.

• Any new machinery or equipment (other than any grain

bin, cotton ginning asset, fence, or other land improvement)

used in a farming business and placed in service after 2017,

in tax years ending after 2017. The original use of the

property must begin with you after 2017.

• Any qualified facility (as defined in section 45Y(b)(1)(A)),

any qualified property (as defined in subsection (b)(2) of

section 48E) which is a qualified investment (as defined in

subsection (b)(1) of such section), or any energy storage

technology (as defined in subsection (c)(2) of such section)

and placed in service after 2025.

7-year property includes the following.

• Office furniture and equipment.

• Railroad track.

• Any motorsports entertainment complex (as defined in

section 168(i)(15)).

• Any natural gas gathering line (as defined in section 168(i)

(17)) placed in service after April 11, 2005, the original use of

which begins with you after April 11, 2005, and is not under

self-construction or subject to a binding contract in existence

before April 12, 2005. Also, no AMT adjustment is required.

• Any used agricultural machinery and equipment placed in

service after 2017, grain bins, cotton ginning assets, or

fences used in a farming business (but no other land

improvements).

10

• Any property that does not have a class life and is not

otherwise classified.

10-year property includes the following.

• Vessels, barges, tugs, and similar water transportation

equipment.

• Any single purpose agricultural or horticultural structure

(see section 168(i)(13)).

• Any tree or vine bearing fruits or nuts.

• Any qualified smart electric meter property.

• Any qualified smart electric grid system property.

15-year property includes the following.

• Any municipal wastewater treatment plant.

• Any telephone distribution plant and comparable

equipment used for 2-way exchange of voice and data

communications.

• Any section 1250 property that is a retail motor fuels outlet

(whether or not food or other convenience items are sold

there).

• Initial clearing and grading land improvements for gas

utility property.

• Certain electric transmission property specified in section

168(e)(3)(E)(v) placed in service after April 11, 2005, the

original use of which begins with you after April 11, 2005, and

is not under self-construction or subject to a binding contract

in existence before April 12, 2005.

• Qualified improvement property, as defined in section

168(e)(6), placed in service by you after December 31, 2017.

20-year property includes the following.

• Farm buildings (other than single purpose agricultural or

horticultural structures).

• Municipal sewers not classified as 25-year property.

• Initial clearing and grading land improvements for electric

utility transmission and distribution plants.

25-year property is water utility property, which is:

• Property that is an integral part of the gathering, treatment,

or commercial distribution of water that, without regard to this

classification, would be 20-year property; and

• Municipal sewers.

This classification does not apply to property placed in

service under a binding contract in effect at all times since

June 9, 1996.

Residential rental property is a building in which 80% or

more of the total rent is from dwelling units.

Nonresidential real property is any real property that is

neither residential rental property nor property with a class

life of less than 27.5 years.

50-year property includes any improvements necessary

to construct or improve a roadbed or right-of-way for railroad

track that qualifies as a railroad grading or tunnel bore under

section 168(e)(4).

Determining the classification. If your depreciable

property is not listed above, determine the classification as

follows.

1. Find the property’s class life. See the Table of Class

Lives and Recovery Periods in Pub. 946.

2. Use the following table to find the classification in

column (b) that corresponds to the class life of the property in

column (a).

Instructions for Form 4562 (2025)

(a)

Class life (in years)

(See Pub. 946.)

4 or less . . . . . . . . . . . . . . . . . . . .

More than 4 but less than 10 . . . . . . . .

10 or more but less than 16 . . . . . . . .

16 or more but less than 20 . . . . . . . .

20 or more but less than 25 . . . . . . . .

25 or more . . . . . . . . . . . . . . . . . . .

(b)

Classification

3-year property

5-year property

7-year property

10-year property

15-year property

20-year property

Column (b)—Month and year placed in service. For

lines19i and 19j, enter the month and year you placed the

property in service. If you converted property held for

personal use to use in a trade or business or for the

production of income, treat the property as being placed in

service on the conversion date.

Column (c)—Basis for depreciation (business/investment use only). To find the basis for depreciation, multiply

the cost or other basis of the property by the percentage of

business/investment use. From that result, subtract any

credits and deductions allocable to the property. The

following are examples of some credits and deductions that

reduce the basis for depreciation.

• Section 179 expense deduction.

• Deduction under section 179D for certain energy efficient

commercial building property.

• Deduction for removal of barriers to the disabled and the

elderly.

• Disabled access credit.

• Enhanced oil recovery credit.

• Credit for alternative fuel vehicle refueling property.

• Credit for employer-provided childcare facilities and

services.

• Any special depreciation allowance included on line 14.

• Any basis adjustment for investment credit property. See

section 50(c).

• Any basis adjustment for advanced manufacturing

investment credit property. See section 48D(d)(5).

For additional credits and deductions that affect the

depreciable basis, see section 1016 and Pub. 946.

Column (d)—Recovery period. Determine the recovery

period from the following table. See Pub. 946 for more

information on the recovery period for MACRS property.

Recovery Period for Most Property

Classification

3-year property . . . . . . . . . . . . . . . . . . . .

5-year property . . . . . . . . . . . . . . . . . . . .

7-year property . . . . . . . . . . . . . . . . . . . .

10-year property . . . . . . . . . . . . . . . . . . .

15-year property . . . . . . . . . . . . . . . . . . .

20-year property . . . . . . . . . . . . . . . . . . .

25-year property . . . . . . . . . . . . . . . . . . .

Residential rental property . . . . . . . . . . . . .

Nonresidential real property . . . . . . . . . . . .

Railroad gradings and tunnel bores . . . . . . .

Recovery period

3 yrs.

5 yrs.

7 yrs.

10 yrs.

15 yrs.

20 yrs.

25 yrs.

27.5 yrs.

39 yrs.

50 yrs.

Column (e)—Convention. The applicable convention

determines the portion of the tax year for which depreciation

is allowable during a year property is either placed in service

or disposed of. There are three types of conventions. To

select the correct convention, you must know the type of

property and when you placed the property in service.

Instructions for Form 4562 (2025)

Half-year convention. This convention applies to all

property reported on lines 19a through 19h, unless the

mid-quarter convention applies. It does not apply to

residential rental property, nonresidential real property, and

railroad gradings and tunnel bores. It treats all property

placed in service (or disposed of) during any tax year as

placed in service (or disposed of) on the midpoint of that tax

year. Enter “HY” in column (e).

Mid-quarter convention. If the total depreciable bases

(before any special depreciation allowance) of MACRS

property placed in service during the last 3 months of your

tax year exceed 40% of the total depreciable bases of

MACRS property placed in service during the entire tax year,

the mid-quarter, instead of the half-year, convention generally

applies.

In determining whether the mid-quarter convention

applies, do not take into account the following.

• Property that is being depreciated under a method other

than MACRS.

• Any residential rental property, nonresidential real property,

or railroad gradings and tunnel bores.

• Property that is placed in service and disposed of within

the same tax year.

The mid-quarter convention treats all property placed in

service (or disposed of) during any quarter as placed in

service (or disposed of) on the midpoint of that quarter.

However, no depreciation is allowed under this convention for

property that is placed in service and disposed of within the

same tax year. Enter “MQ” in column (e).

Mid-month convention. This convention applies only to

residential rental property (line 19i), nonresidential real

property (line 19j), and railroad gradings and tunnel bores. It

treats all property placed in service (or disposed of) during

any month as placed in service (or disposed of) on the

midpoint of that month. Enter “MM” in column (e).

Column (f)—Method. Applicable depreciation methods are

prescribed for each classification of property as follows.

However, you can make an irrevocable election to use the

straight line method for all property within a classification that

is placed in service during the tax year. Enter “200 DB” for

200% declining balance, “150 DB” for 150% declining

balance, or “S/L” for straight line.

• 3-, 5-, 7-, and 10-year property. Generally, the applicable

method is the 200% declining balance method, switching to

the straight line method in the first tax year that the straight

line rate exceeds the declining balance rate.

Note: The straight line method is the only applicable method

for trees and vines bearing fruits or nuts. The 150% declining

balance method is the only applicable method for any

qualified smart electric meter or any qualified smart electric

grid system property placed in service after October 3, 2008.

For 3-, 5-, 7-, or 10-year property eligible for the 200%

declining balance method, you can make an irrevocable

election to use the 150% declining balance method,

switching to the straight line method in the first tax year that

the straight line rate exceeds the declining balance rate. The

election applies to all property within the classification for

which it is made and that was placed in service during the tax

year. You will not have an AMT adjustment for any property

included under this election.

For 3-, 5-, 7-, or 10-year property used in a farming

business and placed in service after 2017, in tax years

ending after 2017, the 150% declining balance method is no

longer required. However, the 150% declining balance

11

method will continue to apply to any 15- or 20-year property

used in a farming business to which the straight line method

does not apply or to property for which you elect the use of

the 150% declining balance method.

• 15- and 20-year property and property used in a

farming business. The applicable method is the 150%

declining balance method, switching to the straight line

method in the first tax year that the straight line rate exceeds

the declining balance rate. For 3-, 5-, 7-, and 10-year

property used in a farming business and placed in service

after 2017, see 3-, 5-, 7-, or 10-year property above.

• Water utility property, residential rental property,

nonresidential real property, or any railroad grading or

tunnel bore. The only applicable method is the straight line

method.

Column (g)—Depreciation deduction. To figure the

depreciation deduction, you may use optional Tables A

through E, which begin later. Multiply column (c) by the

applicable rate from the appropriate table. See Pub. 946 for

complete tables. If you disposed of the property during the

current tax year, multiply the result by the applicable decimal

amount from the tables in Step 3, later. Or, you may compute

the deduction yourself by completing the following steps.

Step 1. Determine the depreciation rate as follows.

• If you are using the 200% or 150% declining balance

method in column (f), divide the declining balance rate (use

2.00 for 200 DB or 1.50 for 150 DB) by the number of years in

the recovery period in column (d). For example, for property

depreciated using the 200 DB method over a recovery period

of 5 years, divide 2.00 by 5 for a rate of 40%. You must switch

to the straight line rate in the first year that the straight line

rate exceeds the declining balance rate.

• If you are using the straight line method, divide 1.00 by the

remaining number of years in the recovery period as of the

beginning of the tax year (but not less than 1). For example, if

there are 61/2 years remaining in the recovery period as of the

beginning of the year, divide 1.00 by 6.5 for a rate of 15.38%.

Step 2. Multiply the percentage rate determined in Step 1

by the property’s unrecovered basis (basis for depreciation

(as defined in column (c)) reduced by all prior years’

depreciation.

Step 3. For property placed in service or disposed of

during the current tax year, multiply the result from Step 2 by

the applicable decimal amount from the tables below (based

on the convention shown in column (e)).

Half-year (HY) convention . . . . . . . . . . . . . . . . . . . . .

0.5

Mid-quarter (MQ) convention

Placed in service

(or disposed of) during the:

1st quarter . . . . . . . . . .

2nd quarter . . . . . . . . .

3rd quarter . . . . . . . . . .

4th quarter . . . . . . . . . .

Placed

in service

0.875

0.625

0.375

0.125

Disposed

of

0.125

0.375

0.625

0.875

Mid-month (MM) convention

Placed in service

(or disposed of) during the:

1st month . . . . . . . . . . .

2nd month . . . . . . . . . . .

3rd month . . . . . . . . . . .

4th month . . . . . . . . . . .

5th month . . . . . . . . . . .

6th month . . . . . . . . . . .

7th month . . . . . . . . . . .

8th month . . . . . . . . . . .

9th month . . . . . . . . . . .

10th month . . . . . . . . . . .

11th month . . . . . . . . . . .

12th month . . . . . . . . . . .

Placed

in service

0.9583

0.8750

0.7917

0.7083

0.6250

0.5417

0.4583

0.3750

0.2917

0.2083

0.1250

0.0417

Disposed

of

0.0417

0.1250

0.2083

0.2917

0.3750

0.4583

0.5417

0.6250

0.7083

0.7917

0.8750

0.9583

Short tax years. See Pub. 946 for rules on how to

compute the depreciation deduction for property placed in

service in a short tax year.

Section C

Lines 20a Through 20e

Complete lines 20a through 20e for assets, other than

automobiles and other listed property, placed in service only

during the tax year beginning in 2025 and depreciated under

ADS. Report on line 17 MACRS depreciation on assets

placed in service in prior years.

Under ADS, use the applicable depreciation method, the

applicable recovery period, and the applicable convention to

compute depreciation.

The following types of property must be depreciated under

ADS.

• Tangible property used predominantly outside the United

States.

• Tax-exempt use property.

• Tax-exempt bond financed property.

• Imported property covered by an executive order of the

President of the United States.

• Property used predominantly in a farming business and

placed in service during any tax year in which you made an

election under section 263A(d)(3) to not have the uniform

capitalization rules of section 263A apply.

• Any nonresidential real property, residential rental property,

or qualified improvement property held by an electing real

property trade or business (as defined in section 163(j)(7)

(B)).

• Any property that has a recovery period of 10 years or

more under section 168(c) that is held by an electing farming

business (as defined in section 163(j)(7)(C)).

Instead of depreciating property under GDS (line 19), you

can make an irrevocable election for any classification of

property for any tax year to use ADS. For residential rental

and nonresidential real property, you can make this election

separately for each property. You make this election by

completing line 20 of Form 4562.

Column (a)—Classification of property. Use the following

rules to determine the classification of the property under

ADS.

Under ADS, the depreciation deduction for most property

is based on the property’s class life. See section 168(g)(3) for

special rules for determining the class life for certain property.

See Pub. 946 for information on recovery periods for ADS

and the Table of Class Lives and Recovery Periods.

12

Instructions for Form 4562 (2025)

Use line 20a for all property depreciated under ADS,

except property that does not have a class life, residential

rental and nonresidential real property, water utility property,

and railroad gradings and tunnel bores. Use line 20b for

property that does not have a class life. Use line 20c for

residential rental property. Use line 20d for nonresidential real

property.

Residential rental property. The ADS recovery period

for residential rental property placed in service after 2017 is

30 years. The ADS recovery period for residential rental

property placed in service before January 1, 2018, is 30

years if the property is held by an electing real property trade

or business (as defined in section 163(j)(7)(B)) and section

168(g)(1)(A), (B), (C), (D), or (E) did not apply to the property

before January 1, 2018. Report depreciation for these assets

on line 20c. For more information, see Pub. 946.

Water utility property and railroad gradings and

tunnel bores. These assets are 50-year property under

ADS. Use line 20e for reporting water utility property and

railroad grading and tunnel bores. For more information, see

Pub. 946.

Column (b)—Month and year placed in service. For

residential rental property and 40-year property, enter the

month and year placed in service or converted to use in a

trade or business or for the production of income.

Column (c)—Basis for depreciation (business/investment use only). See the instructions for line 19, column (c).

Column (d)—Recovery period. On line 20a, enter the

property’s class life.

Column (e)—Convention. Under ADS, the applicable

conventions are the same as those used under GDS. See the

instructions for line 19, column (e).

Column (g)—Depreciation deduction. Figure the

depreciation deduction in the same manner as under GDS,

except use the straight line method over the ADS recovery

period and use the applicable convention.

MACRS recapture. If you later dispose of property you

depreciated using MACRS, any gain on the disposition is

generally recaptured (included in income) as ordinary income

up to the amount of the depreciation previously allowed or

allowable for the property. Depreciation, for this purpose,

includes any of the following amounts taken during the 2025

tax year.

• Any section 179 expense deduction claimed on the

property.

• Any special depreciation allowance available for the

property (unless you elected not to claim it).

• Any deduction under section 179B for capital costs

incurred in complying with Environmental Protection Agency

sulfur regulations.

There is no recapture for residential rental and

nonresidential real property, unless that property is qualified

property for which you claimed a special depreciation

allowance (discussed earlier). For more information on

depreciation recapture, see Pub. 946.

Part IV. Summary

Line 22

A partnership or S corporation does not include any section

179 expense deduction (line 12) on this line. Instead, any

section 179 expense deduction is passed through separately

Instructions for Form 4562 (2025)

to the partners and shareholders on the appropriate line of

their Schedules K-1.

Lines 23a and 23b

If you are subject to the uniform capitalization rules of section

263A, enter the increase in basis from costs you must

capitalize. Complete lines 23a and 23b for assets shown in

Part III that you have placed in service during the current tax

year and have costs capitalized under section 263A. For a

detailed discussion of who is subject to these rules, which

costs must be capitalized, and allocation of costs among

activities, see Regulations section 1.263A-1.

Line 23a. If you are subject to the uniform capitalization

rules specifically for interest costs under section 263A(f),

enter the increase in basis from interest costs you must

capitalize. For a detailed discussion on interest capitalization

rules, see Regulation sections 1.263A-8 through 1.263A-12.

Line 23b. If you are subject to the uniform capitalization

rules specifically for interest costs under section 263A(f),

enter the increase in basis from costs you must capitalize

other than interest costs under section 263A(f). See

Regulations section 1.263A-1. Also, see line 23a above.

Part V. Listed Property

If you claim the standard mileage rate, actual vehicle

expenses (including depreciation), or depreciation on other

listed property, you must provide the information requested in

Part V, regardless of the tax year the property was placed in

service. However, if you file Form 2106, report this

information on that form and not in Part V. Also, if you file

Schedule C (Form 1040) and are claiming the standard

mileage rate or actual vehicle expenses (except

depreciation), and you are not required to file Form 4562 for

any other reason, report vehicle information in Part IV of

Schedule C and not on Form 4562.

Section A

Caution: The section 179 expense deduction should be

computed before calculating any special depreciation

allowance and/or regular depreciation deduction. See the

instructions for line 26, column (i).

Listed property used 50% or less in a qualified business

use (as defined in the instructions for lines 26 and 27 below)

does not qualify for the section 179 expense deduction or

special depreciation allowance.

Line 24c

Indicate whether you owned, leased, or chartered an aircraft

during the tax year. Check all boxes that apply. See Business

aircraft, later, for information on the requirements and tests

for qualified business use of business aircraft.

Line 25

If you placed in service certain qualified listed property during

the tax year, you may be able to deduct the special

depreciation allowance. This property includes certain

qualified property acquired after January 19, 2025, and

certain qualified property acquired after September 27, 2017,

and before January 20, 2025. See the instructions for line 14

for the definition of qualified property and how to figure the

deduction. This special depreciation allowance is included in

the overall limit on depreciation and section 179 expense

deduction for passenger automobiles. See the tables for

limitations on passenger vehicles and trucks and vans, later.

13

Enter on line 25 your total special depreciation allowance for

all qualified listed property.

Lines 26 and 27

Use line 26 to figure depreciation for property used more than

50% in a qualified business use. Use line 27 to figure the

depreciation for property used 50% or less in a qualified

business use. Also, see Limits for passenger automobiles,

later.

Caution: If you acquired the property through a trade-in,

special rules apply for determining the basis, recovery period,

depreciation method, and convention. For more details, see

Property acquired in a like-kind exchange or involuntary

conversion, earlier. Also, see Regulations section

1.168(i)-6(d)(3).

Qualified business use. To determine whether to use

line 26 or line 27 to report your listed property, you must first

determine the percentage of qualified business use for each

property. Generally, a qualified business use is any use in

your trade or business. However, it does not include any of

the following.

• Investment use.

• Leasing the property to a 5% owner or related person if the

value related to such usage is not reported as income to the

individual.

• The use of the property as compensation for services

performed by a 5% owner or related person.

• The use of the property as compensation for services

performed by any person (who is not a 5% owner or related

person), unless an amount is included in that person’s

income for the use of the property and, if required, income

tax was withheld on that amount.

• The use of property that is determined to be

non-deductible under section 274.

Excluding these uses above from the numerator,

determine your percentage of qualified business use similar

to the method used to figure the business/investment use

percentage in column (c). Your percentage of qualified

business use may be smaller than the business/investment

use percentage.

For more information, including the definition of a 5%

owner and related person and exceptions, see Pub. 946.

Business aircraft. In determining the qualified business

use related to business aircraft two tests must be met to

claim an accelerated depreciation method, including the

special depreciation allowance. To claim accelerated

depreciation on business aircraft you must meet the 50% test

under section 280F(b) and the 25% test under section

280F(d)(6)(C)(ii). Failure to meet these tests disqualifies the

aircraft from claiming accelerated depreciation, including the

special depreciation allowance. Qualified business use for an

aircraft is computed using each passenger on every flight leg.

You must also maintain contemporaneous records to

substantiate the following.

• The amount of the aircraft expense,

• Time and place of travel,

• Business purpose of the travel, and

• Business relationship of each individual using the aircraft.

See Pub. 946. Also, see sections 280F(b) and 280F(d)(6)

(C)(ii).

Listed property recapture. If you used listed property more

than 50% in a qualified business use in the year you placed

the property in service, and used it 50% or less in a later year,

you may have to include as income part of the depreciation,

14

including the special depreciation allowance, deducted in

prior years. Use Form 4797, Sales of Business Property, to

figure the recapture amount.

Column (a)—Type of property. List on a

property-by-property basis all your listed property in the

following order.

1. Automobiles and other vehicles.

2. Other listed property (computers and peripheral

equipment placed in service before 2018, etc.).

In column (a), list the makes and models of automobiles,

and give a general description of other listed property.

If you have more than five vehicles used 100% for

business/investment purposes, you may group them by tax

year. Otherwise, list each vehicle separately.

Column (b)—Date placed in service. Enter the date the

property was placed in service. If property held for personal

use is converted to business/investment use, treat the

property as placed in service on the date of conversion.

Column (c)—Business/investment use percentage.

Enter the percentage of business/investment use. For

automobiles and other vehicles, determine this percentage

by dividing the number of miles the vehicle is driven for trade

or business purposes or for the production of income during

the year (not to include any commuting mileage) by the total

number of miles the vehicle is driven for all purposes. Treat

vehicles used by employees as being used 100% for

business/investment purposes if the value of personal use is

included in the employees’ gross income, or the employees

reimburse the employer for the personal use. For more

information, see Pub. 463.

For other listed property (such as computers placed in

service before 2018 or video equipment), allocate the use

based on the most appropriate unit of time the property is

actually used (rather than merely being available for use).

If during the tax year you convert property used solely for

personal purposes to business/investment use (or vice

versa), figure the percentage of business/investment use only

for the number of months you use the property in your

business or for the production of income. Multiply that

percentage by the number of months you use the property in

your business or for the production of income, and divide the

result by 12.

Column (d)—Cost or other basis. Enter the property’s

actual cost (including sales tax) or other basis (unadjusted for

prior years’ depreciation). If you traded in old property, see

Property acquired in a like-kind exchange or involuntary

conversion, earlier.

For a vehicle, reduce your basis by any qualified electric

vehicle credit you claimed for property placed in service

before January 1, 2007, or by any alternative motor vehicle

credit allowed.

If you converted the property from personal use to

business/investment use, your basis for depreciation is the

smaller of the property’s adjusted basis or its fair market

value on the date of conversion.

Column (e)—Basis for depreciation (business/investment use only). Multiply column (d) by the percentage in

column (c). From that result, subtract any section 179

expense deduction, any special depreciation allowance, any

credit for employer-provided childcare facilities and services,

and half of any investment credit taken before 1986 (unless

Instructions for Form 4562 (2025)

you claimed the reduced credit). For automobiles and other

listed property placed in service after 1985 (that is, transition

property), reduce the depreciable basis by the entire

investment credit.

Column (f)—Recovery period. Enter the recovery period.

For property placed in service after 1986 and used more than

50% in a qualified business use, use the table in the

instructions for line 19, column (d). For property placed in

service after 1986 and used 50% or less in a qualified

business use, depreciate the property using the straight line

method over its ADS recovery period. The ADS recovery

period is 5 years for automobiles and computers.

Column (g)—Method/convention. Enter the method and

convention used to figure your depreciation deduction. See

the instructions for line 19, columns (e) and (f). Enter “200

DB,” “150 DB,” or “S/L” for the depreciation method, and “HY,”

“MM,” or “MQ” for half-year, mid-month, or mid-quarter

conventions, respectively. For property placed in service

before 1987, enter “PRE” if you used the prescribed

percentages under ACRS. If you elected an alternate

percentage or if you are required to depreciate the property

using the straight line method, enter “S/L.”

Column (h)—Depreciation deduction. See Limits for

passenger automobiles, later, before entering an amount in

column (h).

For property used more than 50% in a qualified business

use (line 26) and placed in service after 1986, figure column

(h) by following the instructions for line 19, column (g). If

placed in service before 1987, multiply column (e) by the

applicable percentage given in Pub. 534 for ACRS property. If

the recovery period for an automobile ended before your tax

year beginning in 2025, enter your unrecovered basis, if any,

in column (h).

For property used 50% or less in a qualified business use

(line 27) and placed in service after 1986, figure column (h)

by dividing the amount in column (e) by the amount in column

(f). Use the same conventions as discussed in the

instructions for line 19, column (e). The amount in column (h)

cannot exceed the property’s unrecovered basis. If the

recovery period for an automobile ended before your tax year

beginning in 2025, enter your unrecovered basis, if any, in

column (h).

For property placed in service before 1987 that was

disposed of during the year, enter zero.

Limits for passenger automobiles. The depreciation

deduction, including the section 179 expense deduction and

special depreciation allowance, for passenger automobiles is

limited. For any passenger automobile (including an electric

passenger automobile) you list on line 26 or line 27, the total

of columns (h) and (i) on line 26 or 27 and column (h) on

line 25 for that automobile cannot exceed the applicable limit

shown in Table 1, 2, 3, or 4. If the business/investment use

percentage in column (c) for the automobile is less than

100%, you must reduce the applicable limit to an amount

equal to the limit multiplied by that percentage. For example,

for an automobile (including a truck or van) placed in service

in 2025 (for which you elect not to claim any special

depreciation allowance) that is used 60% for business/

investment, the limit is $7,320 ($12,200 x 60% (0.60)).

For purposes of the limits for passenger automobiles, the

following apply.

• Passenger automobiles are 4-wheeled vehicles

manufactured primarily for use on public roads that are rated

Instructions for Form 4562 (2025)

at 6,000 pounds unloaded gross vehicle weight or less (for a

truck or van, gross vehicle weight is substituted for unloaded

gross vehicle weight).

• Electric passenger automobiles are vehicles produced by

an original equipment manufacturer and designed to run

primarily on electricity, placed in service after August 5, 1997,

and before January 1, 2007.

Exception. The following vehicles are not considered

passenger automobiles.

• An ambulance, hearse, or combination ambulance-hearse

used in your trade or business.

• A vehicle used in your trade or business of transporting

persons or property for compensation or hire.

• Any truck or van placed in service after July 6, 2003, that is

a qualified nonpersonal use vehicle. A truck or van is a

qualified nonpersonal use vehicle only if it has been specially

modified with the result that it is not likely to be used more

than a de minimis amount for personal purposes. For

example, a van that has only a front bench for seating, in

which permanent shelving has been installed, that constantly

carries merchandise or equipment, and that has been

specially painted with advertising or the company’s name, is

a vehicle not likely to be used more than a de minimis amount

for personal purposes.

Exception for leasehold property. The business use

requirement and the limits for passenger automobiles

generally do not apply to passenger automobiles leased or

held by anyone regularly engaged in the business of leasing

passenger automobiles.

For a detailed discussion on passenger automobiles,

including leased automobiles, see Pub. 463.

Table 1—Limits for Passenger Automobiles

(including trucks and vans) Acquired Before

September 28, 2017, and Placed in Service Before

2020

IF you placed your

automobile in service:

Jan. 1–Dec. 31, 2018

Jan. 1–Dec. 31, 2019

AND the

number of tax years in

which this automobile

has been

in service is:

THEN the

limit on your

depreciation and

section 179 expense

deduction is:

3

$9,600

4 or more

$5,760

3

$9,700

4 or more

$5,760

15

Table 2—Limits for Passenger Automobiles

(including trucks and vans) Acquired After

September 27, 2017, and Placed in Service Before

2026

IF you placed

your automobile

in service:

Jan. 1–Dec. 31, 2018

Jan. 1–Dec. 31, 2019

Jan. 1–Dec. 31, 2020

Jan. 1–Dec. 31, 2021

Jan. 1–Dec. 31, 2022

Jan. 1–Dec. 31, 2023

Jan. 1–Dec. 31, 2024

Jan. 1–Dec. 31, 2025

AND the

number of

tax years in

which this

automobile has

been in

service is:

THEN the limit on

your depreciation

and section 179

expense deduction

is:

3

$9,600

4 or more

$5,760

3

$9,700

4 or more

$5,760

3

$9,700

4 or more

$5,760

3

$9,800

4 or more

$5,860

3

$10,800

4 or more

$6,460

3

$11,700

4 or more

$6,960

2

$19,800

3

$11,900

1

$12,200*

2

$19,600

* If you take the special depreciation allowance for qualified passenger automobiles

acquired after September 27, 2017, and placed in service in 2025, the limit is $20,200.

Table 3—Limits for Passenger Automobiles

Placed in Service After 2003 and Before 2018

(excluding trucks and vans placed in service after

2002 and electric passenger automobiles placed in

service before January 1, 2007)

AND the

number of

tax years in

which this

automobile has

been in

service is:

THEN the

limit on your

depreciation and

section 179 expense

deduction is:

Jan. 1, 2004–Dec. 31, 2005

4 or more

$1,675

Jan. 1, 2006–Dec. 31, 2011

4 or more

$1,775

Jan. 1, 2012–Dec. 31, 2017

4 or more

$1,875

IF you placed

your automobile

in service:

Table 4—Limits for Trucks and Vans Placed in

Service After 2003 and Before 2018

AND the

number of

tax years in

which this truck or

van has been in

service is:

THEN the

limit on your

depreciation and

section 179 expense

deduction is:

Jan. 1, 2004–Dec. 31, 2008

4 or more

$1,875

Jan. 1–Dec. 31, 2009

4 or more

$1,775

Jan. 1, 2010–Dec. 31, 2012

4 or more

$1,875

Jan. 1, 2013–Dec. 31, 2015

4 or more

$1,975

Jan. 1–Dec. 31, 2016

4 or more

$2,075

Jan. 1–Dec. 31, 2017

3

$3,450

4 or more

$2,075

IF you placed

your truck or van

in service:

Column (i)—Elected section 179 cost. Enter the amount

you elect to expense for section 179 property used more than

50% in a qualified business use (subject to the limits for

passenger automobiles). Refer to the instructions for Part I to

determine if the property qualifies under section 179.

You cannot elect to expense more than $31,300 of the

cost of any SUVs and certain other vehicles placed in service

during the tax year. This rule applies to any 4-wheeled

vehicle primarily designed or used to carry passengers over

public streets, roads, or highways, that is rated at more than

6,000 pounds gross vehicle weight and not more than 14,000

pounds gross vehicle weight. However, the $31,300 limit

does not apply to any vehicle:

• Designed to seat more than nine persons behind the

driver’s seat;

• Equipped with a cargo area (either open or enclosed by a

cap) of at least 6 feet in interior length that is not readily

accessible directly from the passenger compartment; or

• That has an integral enclosure fully enclosing the driver

compartment and load carrying device, does not have

seating rearward of the driver’s seat, and has no body section

protruding more than 30 inches ahead of the leading edge of

the windshield.

Recapture of section 179 expense deduction. If you

used listed property more than 50% in a qualified business

use in the year you placed the property in service and used it

50% or less in a later year, you may have to recapture in the

later year part of the section 179 expense deduction. Use

Form 4797 to figure the recapture amount.

Section B

Except as noted below, you must complete lines 30 through

36 for each vehicle identified in Section A. Employees must

provide their employers with the information requested on

lines 30 through 36 for each automobile or vehicle provided

for their use.

Exception. Employers are not required to complete lines 30

through 36 for vehicles used by employees who are not more

than 5% owners or related persons and for which the

question on line 37, 38, 39, 40, or 41 is answered “Yes.”

Section C

Employers providing vehicles to their employees satisfy the

employer’s substantiation requirements under section 274(d)

by maintaining a written policy statement that:

16

Instructions for Form 4562 (2025)

• Prohibits personal use including commuting, or

• Prohibits personal use except for commuting.

An employee does not need to keep a separate set of

records for any vehicle that satisfies these written policy

statement rules.

For both written policy statements, there must be evidence

that would enable the IRS to determine whether use of the

vehicle meets the conditions stated below.

Line 37

A policy statement that prohibits personal use (including

commuting) must meet all of the following conditions.

• The employer owns or leases the vehicle and provides it to

one or more employees for use in the employer’s trade or

business.

• When the vehicle is not used in the employer’s trade or

business, it is kept on the employer’s business premises,

unless it is temporarily located elsewhere (for example, for

maintenance or because of a mechanical failure).

• No employee using the vehicle lives at the employer’s

business premises.

• No employee may use the vehicle for personal purposes,

other than de minimis personal use (for example, a stop for

lunch between two business deliveries).

• Except for de minimis use, the employer reasonably

believes that no employee uses the vehicle for any personal

purpose.

Line 38

A policy statement that prohibits personal use (except for

commuting) is not available if the commuting employee is an

officer, director, or 1% or more owner. This policy must meet

all of the following conditions.

• The employer owns or leases the vehicle and provides it to

one or more employees for use in the employer’s trade or

business, and it is used in the employer’s trade or business.

• For bona fide noncompensatory business reasons, the

employer requires the employee to commute to and/or from

work in the vehicle.

• The employer establishes a written policy under which the

employee may not use the vehicle for personal purposes,

other than commuting or de minimis personal use (for

example, a stop for a personal errand between a business

delivery and the employee’s home).

• Except for de minimis use, the employer reasonably

believes that the employee does not use the vehicle for any

personal purpose other than commuting.

• The employer accounts for the commuting use by

including an appropriate amount in the employee’s gross

income.

Line 40

An employer that provides more than five vehicles to its

employees who are not 5% owners or related persons need

not complete Section B for such vehicles. Instead, the

employer must obtain the information from its employees and

retain the information received.

Line 41

An automobile meets the requirements for qualified

demonstration use if the employer maintains a written policy

statement that:

• Prohibits its use by individuals other than full-time

automobile salespersons,

• Prohibits its use for personal vacation trips,

Instructions for Form 4562 (2025)

• Prohibits storage of personal possessions in the

automobile, and

• Limits the total mileage outside the salesperson’s normal

working hours.

Part VI. Amortization

Each year, you can deduct part of certain capital costs over a

fixed period.

Attach any information the Code and regulations may

require to make a valid election. See the applicable Code

section and regulations for more information.

Caution: If you amortize property, the part you amortize

does not qualify for the section 179 expense deduction or for

depreciation.

Line 42

Complete line 42 only for those costs you amortize for which

the amortization period begins during your tax year beginning

in 2025.

Column (a)—Description of costs. Describe the costs you

are amortizing. You can amortize the following.

Geological and geophysical expenditures (section

167(h)). You must amortize geological and geophysical

expenses paid or incurred in connection with the exploration

or development of oil and gas within the United States ratably

over a 24-month period, beginning on the midpoint of the tax

year in which the expenses were paid or incurred. For a major

integrated oil company (as defined in section 167(h)(5)), the

costs paid or incurred after December 19, 2007, must be

amortized ratably over a 7-year period (a 5-year period for

costs paid or incurred after May 17, 2006, and before

December 20, 2007).

Pollution control facilities (section 169). You can elect

to amortize the cost of a certified pollution control facility over

a 60-month period (84 months for certain atmospheric

pollution control facilities placed in service after April 11,

2005). See section 169 and the related regulations for details

and information required in making the election.

Caution: You can deduct a special depreciation allowance

on a certified pollution control facility that is qualified property.

However, you must reduce the amount on which you figure

your amortization deduction by any special depreciation

allowance allowed or allowable, whichever is greater.

Also, a corporation must reduce its amortizable basis of a

pollution control facility by 20% before figuring the

amortization deduction.

Bond premium (section 171). For individuals reporting

amortization of bond premium for taxable bonds acquired

before October 23, 1986, do not report the deduction here.

See the instructions for Schedule A (Form 1040), line 16.

For taxpayers (other than corporations) claiming a

deduction for amortization of bond premium for taxable

bonds acquired after October 22, 1986, but before January 1,

1988, the deduction is treated as interest expense and is

subject to the investment interest limitations. Use Form 4952,

Investment Interest Expense Deduction, to compute the

allowable deduction.

For taxable bonds acquired after 1987, you can elect to

amortize the bond premium over the life of the bond. In

general, you amortize bond premium on a bond by offsetting

the stated interest allocable to a tax year with the bond

premium allocable to that tax year and report the net amount

of stated interest on your return. See section 171 and

17

Regulations sections 1.171-1 through 1.171-5 for more

information. Individuals, also see Pub. 550, Investment

Income and Expenses. A bond premium carryforward as of

the end of a taxpayer’s final accrual period is treated as a

deduction. See Regulations section 1.171-2(a)(4)(i)(C). For

an individual, do not report the deduction here. See the

instructions for Schedule A (Form 1040), line 16.

Research and experimental expenditures (section 174

and 174A). You can deduct your domestic research or

experimental expenditures as current business expenses,

elect to capitalize and amortize your domestic research or

experimental expenditures in equal amounts over a period of

60 months or more (beginning with the month in which you

first realize benefits from the expenditures), or elect to

amortize your research or experimental expenditures over a

10-year period. This includes any domestic amounts paid or

incurred in connection with the development of software.

You must capitalize and amortize research experimental

expenditures attributable to foreign research conducted

outside the United States, Puerto Rico, or any territory of the

United States paid or incurred during the tax year ratably over

a 15-year period beginning with the mid-point of the tax year

in which the expenditures were paid or incurred. This

includes any foreign amounts paid or incurred in connection

with the development of software.

For more information, see sections 174 and 174A, Notice

2023-63, 2023-39 I.R.B. 919, available at IRS.gov/irb/

2023-39_IRB#NOT-2023-63, as modified by Notice 2024-12,

2024-5 I.R.B. 616, available at IRS.gov/irb/

2024-05_IRB#NOT-2024-12, and Revenue Procedure

2025-28, 2025-38 I.R.B. 393, available at IRS.gov/irb/

2025-38_IRB#REV-PROC-2025-28.

The cost of acquiring a lease (section 178). If you get

a lease for business property, you may recover the cost of

acquiring the lease by amortizing it over the term of the lease.

The term of the lease for amortization purposes generally

includes all renewal options (and any other period for which

you and the lessor reasonably expect the lease to be

renewed). However, renewal periods aren’t included if 75% or

more of the cost of acquiring the lease is for the term of the

lease remaining on the acquisition date (not including any

period for which you may choose to renew, extend, or

continue the lease). See section 178.

Qualified forestation and reforestation costs (section

194). You can elect to deduct a limited amount of qualifying

reforestation costs paid or incurred during the tax year for

each qualified timber property. You can elect to amortize the

qualifying costs that are not deducted currently over an

84-month period. There is no limit on the amount of your

amortization deduction for reforestation costs paid or incurred

during the tax year.

If you are otherwise required to file Form T (Timber),

Forest Activities Schedule, you can make the election to

amortize qualifying reforestation costs by completing Part IV

of the form. See the Instructions for Form T (Timber) for more

information.

See section 194. Partnerships and S corporations, also

see the instructions for line 44.

Optional write-off of certain tax preferences over the

period specified in section 59(e). You can elect to

amortize certain tax preference items over an optional period.

If you make this election, there is no AMT adjustment for

these expenditures. The applicable expenditures and the

optional recovery periods are as follows.

• Circulation expenditures (section 173)—3 years.

18

• Intangible drilling and development costs (section

263(c))—60 months.

• Mining exploration and development costs (sections

616(a) and 617(a))—10 years.

• Research or experimental expenditures paid or incurred in

tax years beginning before January 1, 2022 (section 174(a)

prior to amendment by section 13206(a) of P.L. 115-97) and

tax years beginning after December 31, 2024 (section

174A(a))—10 years. Amortization for these costs should be

reported on line 43.

See section 59(e). For information on making the election,

see Regulations section 1.59-1.

Certain section 197 intangibles. The following

intangibles must be amortized over 15 years (180 months)

starting with the later of (a) the month the intangibles were

acquired, or (b) the month the trade or business or activity

engaged in for the production of income begins.

• Goodwill.

• Going concern value.

• Workforce in place.

• Business books and records, operating systems, or any

other information base.

• A patent, copyright, formula, process, design, pattern,

know-how, format, or similar item.

• A customer-based intangible (for example, composition of

market or market share).

• A supplier-based intangible.

• A license, permit, or other right granted by a governmental

unit.

• A covenant not to compete entered into in connection with

the acquisition of a business.

• A franchise, trademark, or trade name (including

renewals).

A longer period may apply to section 197 intangibles

leased under a lease agreement entered into after March 12,

2004, to a tax-exempt organization, governmental unit, or

foreign person or entity (other than a partnership). See

section 197(f)(10).

Caution: A section 197 intangible is treated as depreciable

property used in your trade or business. When you dispose of

a section 197 intangible, any gain on the disposition, up to

the amount of allowable amortization, is recaptured as

ordinary income. If multiple section 197 intangibles are

disposed of in a single transaction or a series of related

transactions, calculate the recapture as if all of the section

197 intangibles were a single asset. This rule does not apply

to section 197 intangibles disposed of for which the adjusted

basis exceeds the fair market value.

See section 197.

Startup and organizational costs. You can elect to

amortize the following costs for setting up your business.

• Business startup costs (section 195).

• Organizational costs for a corporation (section 248).

• Organizational costs for a partnership (section 709).

For business startup and organizational costs paid or

incurred after September 8, 2008, you can elect to deduct a

limited amount of startup or organizational costs for the year

that your business begins. You are not required to attach a

statement to make this election. Once made, the election is

irrevocable. Any cost not deducted currently must be

amortized ratably over a 180-month period. The amortization

period starts with the month you begin business operations.

See Regulations sections 1.195-1, 1.248-1, and 1.709-1.

Instructions for Form 4562 (2025)

For business startup and organizational costs paid or

incurred after October 22, 2004, and before September 9,

2008, you can elect to deduct a limited amount of startup and

organizational costs for the year that your business begins. If

the election is made, you must attach any statement required

by Regulations sections 1.195-1(b), 1.248-1(c), and

1.709-1(c), as in effect before September 9, 2008. Any costs

not deducted currently can be amortized ratably over a

180-month period, beginning with the month you begin

business.

Note: You can apply the provisions of Regulations sections

1.195-1, 1.248-1, and 1.709-1 to all expenses paid or

incurred after October 22, 2004, provided the period of

limitations on assessment has not expired for the year of the

election. Otherwise, for business startup and organizational

costs paid or incurred after October 22, 2004, and before

September 9, 2008, the provisions under Regulations

sections 1.195-1(b), 1.248-1(c), and 1.709-1(c), as in effect

before September 9, 2008, will apply.

For business startup and organizational costs paid or

incurred before October 23, 2004, you can elect an

amortization period of 60 months or more.

Attach any statements required by the appropriate section

and related regulations to Form 4562 by the due date,

including extensions, of your return for the year in which the

active trade or business begins. If you have both startup and

organizational costs, attach a separate statement for each

type of cost. If you timely filed your return without making the

election, you can still make the election on an amended

return filed within 6 months of the due date, excluding

extensions, of the return. Enter “Filed pursuant to section

301.9100-2” on the amended return.

Creative property costs. These are costs paid or

incurred to acquire and develop screenplays, scripts, story

outlines, motion picture production rights to books and plays,

and other similar properties for purposes of potential future

film development, production, and exploitation. You may be

able to amortize creative property costs for properties not set

for production within 3 years of the first capitalized

transaction. These costs are amortized ratably over a 15-year

period under the rules of Revenue Procedure 2004-36,

2004-24 I.R.B. 1063, available at IRS.gov/irb/

2004-24_IRB#RP-2004-36.

Column (b)—Date amortization begins. Enter the date

the amortization period begins under the applicable Code

section. The amortizable amount of a pollution control facility

is reduced by any special depreciation allowance included on

line 14 for that facility.

Column (c)—Amortizable amount. Enter the total amount

you are amortizing. See the applicable Code section for limits

on the amortizable amount.

Column (d)—Code section. Enter the Code section under

which you amortize the costs. For examples, see the Code

sections referenced in the instructions for line 42, column (a),

earlier.

Column (f)—Amortization for this year. Compute the

amortization deduction by:

1. Dividing the amount in column (c) by the number of

months over which the costs are to be amortized and

multiplying the result by the number of months in the

amortization period included in your tax year beginning in

2025, or

Instructions for Form 4562 (2025)

2. Multiplying the amount in column (c) by the percentage

in column (e).

Line 43

If you are reporting the amortization of costs (other than

research or experimental expenditures) that began before

your 2025 tax year and you are not required to file Form 4562

for any other reason, do not file Form 4562. Report the

amortization directly on the “Other Deductions” or “Other

Expenses” line of your return.

Note: The amortization deduction and research or

experimental expenditures under former section 174(b) (for

amounts paid or incurred in tax years beginning before

January 1, 2022) or the dollar amount of research or

experimental expenditures for which you elected to amortize

over the 10-year period under section 59(e) must be reported

on line 43 of Form 4562.

Attach a statement that shows (a) a description of the

costs; (b) the date amortization began; (c) the amortizable

amount; (d) the applicable Code section; (e) the amortization

period; (f) the accumulated amortization; and (g) the

amortization amount for this year.

Under section 7.02(2)(f) of Revenue Procedure 2025-28,

you may elect to amortize the full amount of the remaining

unamortized amount of the amortization deduction of

domestic research or experimental expenditures paid or

incurred in tax years beginning after December 31, 2021, and

before January 1, 2025 (section 174) in the first tax year

beginning after December 31, 2024, or amortize this amount

ratably over the 2-tax year period beginning after the first tax

year beginning after December 31, 2024. To make the

election, attach a statement identifying the dollar amount of

the remaining unamortized domestic research or

experimental expenditures you are electing to amortize per

year and report this amount on line 43. If you are electing to

accelerate the method of amortization for treatment of

domestic research or experimental expenditures paid or

incurred in tax years beginning after December 31, 2021, and

before January 1, 2025, also include the information required

for the “Statement in lieu of a Form 3115” under section

7.02(5)(a)(ii) or 7.02(5)(b)(iii) of Revenue Procedure 2025-28.

See Revenue Procedure 2025-28 for more details.

For the amortization deduction of foreign research or

experimental expenditures under section 174, attach a

statement providing the amount of research or experimental

expenditures for which you are amortizing over the 15-year

period and report this amount on line 43.

Line 44

Report the total amortization, including amortization for

research and experimental expenditures paid or incurred in

2025 and prior years and the allowable portion of forestation

or reforestation amortization, on the applicable “Other

Deductions” or “Other Expenses” line of your return. For

partnerships and S corporations, report the amortizable basis

of any forestation or reforestation expenses for which

amortization is elected and the year in which the amortization

begins as a separately stated item on Schedules K and K-1

(Form 1065 or 1120-S). See the instructions for Schedule K

(Form 1065 or 1120-S) for more details on how to report.

19

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the

United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to

allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless

the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as

their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return

information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for

individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown

in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown

below.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27 hr., 44 min.

4 hr., 16 min.

4 hr., 55 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would

be happy to hear from you. See the instructions for the tax return with which this form is filed.

20

Instructions for Form 4562 (2025)

Table A—General Depreciation System

Method: 200% declining balance switching to straight line

Convention: Half-year

If the recovery period is:

Year

3 years

5 years

7 years

10 years

1

33.33%

20.00%

14.29%

10.00%

2

44.45%

32.00%

24.49%

18.00%

3

14.81%

19.20%

17.49%

14.40%

4

7.41%

11.52%

12.49%

11.52%

5

11.52%

8.93%

9.22%

6

5.76%

8.92%

7.37%

7

8.93%

6.55%

8

4.46%

6.55%

9

6.56%

10

6.55%

11

3.28%

Table B—General Depreciation System

Method: 150% declining balance switching to straight line

Convention: Half-year

If the recovery period is:

Year

5 years

7 years

10 years

12 years

15 years

20 years

1

15.00%

10.71%

7.50%

6.25%

5.00%

3.750%

2

25.50%

19.13%

13.88%

11.72%

9.50%

7.219%

3

17.85%

15.03%

11.79%

10.25%

8.55%

6.677%

4

16.66%

12.25%

10.02%

8.97%

7.70%

6.177%

5

16.66%

12.25%

8.74%

7.85%

6.93%

5.713%

6

8.33%

12.25%

8.74%

7.33%

6.23%

5.285%

7

12.25%

8.74%

7.33%

5.90%

4.888%

8

6.13%

8.74%

7.33%

5.90%

4.522%

9

8.74%

7.33%

5.91%

4.462%

10

8.74%

7.33%

5.90%

4.461%

11

4.37%

4.462%

7.32%

5.91%

12

7.33%

5.90%

4.461%

13

3.66%

5.91%

4.462%

14

5.90%

4.461%

15

5.91%

4.462%

16

2.95%

4.461%

17

4.462%

18

4.461%

19

4.462%

20

4.461%

21

2.231%

21

Table C—General Depreciation System

Method: Straight line

Convention: Mid-month

Recovery period: 27.5 years

The month in the 1st recovery year the property is placed in service:

Year

1

1

2

3

4

5

6

7

8

9

10

11

12

3.485%

3.182%

2.879%

2.576%

2.273%

1.970%

1.667%

1.364%

1.061%

0.758%

0.455%

0.152%

2–9

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

10,12,14,16,18, 20, 22, 24, 26

3.637%

3.637%

3.637%

3.637%

3.637%

3.637%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

11,13,15,17,19, 21, 23, 25, 27

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

3.637%

3.637%

3.637%

3.637%

3.637%

3.637%

28

1.97%

2.273%

2.576%

2.879%

3.182%

3.485%

3.636%

3.636%

3.636%

3.636%

3.636%

3.636%

Table D—General Depreciation System

Method: Straight line

Convention: Mid-month

Recovery period: 31.5 years

The month in the 1st recovery year the property is placed in service:

Year

13,15,17,19, 21, 23, 25, 27, 29, 31

1

2

3

4

5

6

7

8

9

10

11

12

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

14,16,18, 20, 22, 24, 26, 28, 30

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

32

1.720%

1.984%

2.249%

2.513%

2.778%

3.042%

3.175%

3.174%

3.175%

3.174%

3.175%

3.174%

Table E—General Depreciation System

Method: Straight line

Convention: Mid-month

Recovery period: 39 years

The month in the 1st recovery year the property is placed in service:

Year

1

2

3

4

5

6

7

8

9

10

11

12

1

2.461%

2.247%

2.033%

1.819%

1.605%

1.391%

1.177%

0.963%

0.749%

0.535%

0.321%

0.107%

2–39

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

2.564%

40

0.107%

0.321%

0.535%

0.749%

0.963%

1.177%

1.391%

1.605%

1.819%

2.033%

2.247%

2.461%

22

23

Description of Property

Date

Placed in

Service

Cost or

Other

Basis

Business/

Investment

Use %

Section 179

Special

Allowance,

and Other

Basis

Reductions

Depreciation Prior

Years

Basis for

Depreciation

Depreciation Worksheet (Keep for your records.)

Method/

Convention

Recovery

Period

Rate or

Table

%

Depreciation

Deduction

Index

A

Alternative Depreciation System:

Basis for depreciation 13

Classification of property 12

Conventions 13

Depreciation deduction 13

Placed in service date 13

Recovery period 13

Alternative minimum tax 3

Amortization 17

Amortizable amount 19

Amortization deduction 19

Amortization of costs from prior

year 19

Amortization of costs in current

year 17

Applicable code section 19

Certain bond premiums 17

Cost of acquiring a lease 18

Creative property costs 19

Date amortization begins 19

Description of costs 17

Forestation and reforestation costs 18

Geological and geophysical

expenditures 17

Optional section 59(e) write-off 18

Pollution control facilities 17

Research and experimental

expenditures 18

Section 197 intangibles 18

Startup and organizational costs 18

C

General asset accounts 9

Income forecast method 8

Intangible property 8

Listed property 13

Modified Accelerated Cost Recovery

System (MACRS) 9

Alternative Depreciation

System 12

General Depreciation System 9

Involuntary conversion 9

Like-kind exchange 9

Other 8

Depreciation methods:

Declining balance 11

Straight line 11

Depreciation tables 21, 22

Depreciation Worksheet 23

E

Election out:

Involuntary conversion 9

Like-kind exchange 9

Special depreciation allowance 7

G

General Depreciation System:

Basis for depreciation 11

Classification of property 10

Conventions 11

Depreciation deduction 12

Determining the classification 10

Placed in service date 11

Recovery period 11

Conventions:

Half-year 11

Mid-month 11

Mid-quarter 11

I

D

Like-kind exchange 9

Listed property:

Basis for depreciation 14

Convention 15

Cost or other basis 14

Depreciation deduction 15

Information on vehicle use 16

Method 15

Passenger automobile limits 15

Definitions 15

Exception 15

Leasehold property exception 15

Tables 15

Definitions 2

Amortization 3

Commuting 3

Depreciation 2

Listed property 3

Listed property - Exceptions 3

Section 179 property 2

Depreciation:

Accelerated Cost Recovery System

(ACRS) 8

Assets placed in service in prior

year 9

24

Involuntary conversion 9

L

Percentage of business or investment

use 14

Placed in service date 14

Qualified business use 14

Questions for employers on vehicle

use 16

Recapture of section 179 expense

deduction 16

Recovery period 15

Section 179 expense deduction 16

Special depreciation allowance 13

Type of property 14

R

Recapture:

Listed property 14, 16

MACRS depreciation 13

Section 179 expense deduction 4, 16

Special depreciation allowance 7

Recordkeeping 3

S

Section 179 expense deduction 3

Carryover of disallowed deduction 5

Election 3

Limitations:

Maximum deduction 4

Sport utility vehicle (SUV) 16

Taxable income 5

Threshold cost of property 4

Listed property 16

Recapture 4, 16

Special depreciation allowance 5

Election out 7

Figuring the allowance 7

Listed property 13

Qualified property 5

Recapture 7

U

Uniform capitalization rules 13

Unit-of-production method 8

W

Where to find additional

information 2

Who must file 2