Business Deductions
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- Should You Sell or Trade in Your Car?
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- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Small Business Deductions: Depreciation
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How to Claim Depreciation
Do the following to claim depreciation if you are a Schedule C (or Schedule F) filer:
- Complete Form 4562.
- Enter the depreciation deduction on Line 13 of Schedule C for tax year 2011.
- Attach Schedule C and Form 4562 to your Form 1040.
When You Must File Form 4562
You must file Form 4562 if ANY ONE of the following applies to you in tax year 2008:
- You're claiming first-year expensing (Section 179).
- You're claiming a first-year expensing carryover.
- You're depreciating property that was placed in service in 2008
for the first time (in other words, you didn't claim depreciation on
Form 4562 for this property in a prior year).
- In any year you place depreciable property in service for the first time you must file Form 4562.
- You're depreciating listed property, regardless of the year it was placed in service.
For property that you already claimed depreciation on in a prior year that was listed on Form 4562, you do not have to list that same property again on Form 4562 in any future year.
Figure your depreciation on a spreadsheet and enter the deduction on Line 13 if you file Schedule C or Line 16 if you file Schedule F.
However, for property classified as listed property, then you must file Form 4562 regardless of when it was first placed in service.
Next:
Depreciation: What is the First-Year Expensing Deductions (also called the Section 179 deduction)?
Related Links
- Depreciation Conventions
- Recovery Periods, Class Life, Examples of Property
- Points to Keep in Mind When Depreciating Property
- Converting Personal Use Property to Business Use
- Leasehold Improvements
- How to Compute Depreciation
- Two Examples: Computing Depreciation-Example 1: Accelerated MACRS
- Eligibility Requirements for Claiming First-Year Expensing
- First-Year Expensing Deduction Restrictions and Limitations
- Electing First-Year Expensing
- How to Claim the First-Year Expensing Deduction
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