In 2010, we automatically create each Form
4562, and specify the form and copy to which data carries.
If extra copies of Form 4562 appear, simply
erase them, using the "Delete Form" menu option or the "Delete
Copy" button.
At the top of the form, we fill in the
business description, based on the Form and Copy appearing immediately below
that description. (Note that the form and copy numbers carry from the related
Depreciation Worksheet or Vehicle Worksheet.)
There are three limits on the amount of
section 179 expense you may deduct in any given year.
First, your total section 179 amount may
generally not exceed $500,000 for 2010. This is the limitation that affects
most individuals. We leave it to you to check that your total section 179
deductions don't exceed this limit for 2010.
The second limitation is less likely to
affect you. This limitation cuts back the maximum section 179 amount for
property you place in service during the year at a cost over $2,000,000. If you
place $423,000 of section 179 property in service in 2010, you may deduct only
$102,000 of section 179 expense. (This limitation was enacted to ensure that the
benefit accrued to small businesses, not large ones.)
As
to the second limit, you're also on your own, but as this limit is much less
likely to apply, you're less likely to be concerned.
The third limit is the so-called
"business income limitation." This limit says that you may not claim
more section 179 deduction than your total aggregate taxable income that is
derived from the active conduct of all your trades and businesses (including
your wages and, if married filing jointly, your spouse's wages).
On the first line of the section 179 chart,
we carry the first entered item of nonlisted section 179 property (from the
Depreciation Worksheet or the Vehicle Worksheet) whose Form and Copy are the same
as the Form and Copy appearing at the top of this form.
This worksheet is for nonlisted section 179
property, only.
Listed section 179 property carries in to
the "Listed Property" chart, below.
On the second line of the section 179 chart,
we carry the total of all other items of nonlisted section 179 property placed
in service in 2010.
This line shows your total special
depreciation allowance for non-listed property placed in service during 2010.
(The special allowance for listed property is shown on line 25
). Amounts carry to these lines from line 8e
of the Depreciation Worksheet and line 5n
of the Vehicle Worksheet.
We'll carry the "X" from line
9a of the Depreciation Worksheet to line 18
of Form 4562 if these conditions are met:
·
there is a current-year
date in service on line 3a of the Depreciation Worksheet
·
there are proper form
and copy numbers indicated on lines 2a and 2b
of the Depreciation Worksheet
·
there is a value on
line 8c or "Summary" line 12a or
line 12b of the Depreciation Worksheet.
The key thing to note about the depreciation
chart for nonlisted property is that it covers ONLY assets placed in service in
2010.
Also, if you elected the Alternative method
for any assets placed in service in 2010, check line 20a,
immediately below this chart.
Depreciation amounts for all the other
nonlisted assets you're depreciating are lumped together on lines 17
, 15, and 16.
One gets the distinct impression that the
IRS doesn't want to be told all the gory details of your depreciation
deductions. "Keep careful records in case you're audited," they seem
to be saying, "but just give us the bottom line."
We carry data from the Depreciation
Worksheets only if the depreciation amount allowable in 2010 is greater than
zero.
Although there are two lines here, we simply
summarize the depreciation total for all the assets on the first line.
Although there are two lines here, we simply
summarize the depreciation total for all the assets on the first line.
The lines here on the chart are for assets
placed in service in 2010 for which the Alternative Method was elected.
The amount attributable to section 263A
costs is an "information only" number and doesn't affect the
calculations.
Leased vehicles. If you're filling out this Form 4562 for leased
vehicles, you should override a blank line on the listed property section of
the form to enter the vehicle information in the columns specified.
Questions about vehicles. There are several Yes/No questions about vehicles, a
couple of rows of questions above the chart on listed property, and several
rows of questions below the chart. The responses to all of these questions are
"information only," and they don't affect the calculations.
Listed Property. We carry listed property items from the Depreciation
Worksheet in the order entered on the Depreciation Worksheets (lowest copy
number first). If there are more items than lines, we combine the totals of the
additional items on the last line in each section.
Section 179. Here, again, we leave it to your vigilance to check
that the total section 179 amount you claim across all copies of Form 4562 is
not more than $500,000 for 2010.
The chart of information regarding vehicles
reflects the answers you entered on the Vehicle Worksheet.
The amounts you enter in this section don't
carry automatically to any form or schedule. You should manually enter an
amortization deduction both here and on the appropriate form or schedule.