How To Claim Depreciation

Words you may need to know (see Glossary):

• Amortization
• Listed property
• Placed in service
• Standard mileage rate

You must complete and attach Form 4562 to your tax return if you are claiming any of the following.

• A section 179 deduction for the current year or a section 179 carryover from a prior year. (See chapter 2 for information on the section 179 deduction.)
• Depreciation for property placed in service during the current year.
• Depreciation on any vehicle or other listed property, regardless of when it was placed in service.
• A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business.
• Amortization of costs that began in the current year.
• Any depreciation on a corporate income tax return (other than Form 1120S, U.S. Income Tax Return for an S Corporation.)

Employee. If you are an employee and you deduct job-related vehicle expenses using either actual expenses (including depreciation) or the standard mileage rate, do not use Form 4562. Instead use either Form 2106 or Form 2106-EZ. Use Form 2106-EZ if you are claiming the standard mileage rate and you are not reimbursed by your employer.

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