For Paperwork Reduction Act Notice see separate instructions. Cat. No. 12906N Form 4562 2018 Page 2 entertainment recreation or amusement. 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562. 11 Business income limitation. Enter the smaller of business income not less than zero or line 5. Form Depreciation and Amortization Attach Go to your tax return* to www*irs*gov/Form4562 for instructions and the latest information* Name s shown on return Attachment Sequence No* 179...
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Video instructions and help with filling out and completing form 4562

Greetings and welcome back to the accounting 2520 tax return video series this time we're going to be looking at depreciation and preparing form 4562 so let's look at some updated information for one so in order to demonstrate depreciation 179 and self-employment taxes which will be coming next we needed one to have an additional income so we had some more income 50,000 in revenue from his schedule c business and then during the year he purchased some used office furniture in august for three thousand dollars a new computer in april for 2300 and a company car on februari 84 23,500 now one would like to expense as much of the office furniture as possible under section 179 and he does not want to elect out of bonus depreciation so we're going to look at all three section 179 two bonus and makers depreciation so our first thing to do is go ahead and go back to the schedule see where I have updated the revenue so he now has one hundred and twelve thousand three hundred in total revenues so we've calculated his new gross profit and gross income the rest of the expenses are going to stay the same but what we are looking for is the amount of depreciation in section 179 expense that's going to go on line 13 so let's go ahead and look at the form 4562 so this is where we're going to report the depreciation that is calculated we start off of course with the taxpayer name and in this case the 4562 we note which business it's going to attach to so this is for Schedule C and then of course the taxpayer ID number the maximum amount is going to be 500,000 that's for 2014 the cost of equipment that he is actually claiming he's put in service would be hairline too and I believe that the three thousand dollars although he did place more equipment in service but that's what he's calling are claiming section 179 on and of course then there's going to be no limitation on that and so he can actually take the up to the full five hundred thousand dollars if he had that much in property alright so so let's go ahead and put in the used furniture as that's what he purchased the cost basis of that furniture was three thousand dollars and then he's elected the full three thousand dollars in section 179 expense we're going to add those up and we're going to show the tentative deductions of three thousand dollars he does not have a carryover from the prior year now our business income limitation in this case it's actually going to be his profit before any section 179 so I've already calculated that in its 42,000 482 alright and so his section 179 expense because it's not in excess of income we're going to go with three thousand dollars and he has no carry over to the next year alright then we move on to bonus depreciation in part two so remember he does want to take bonus depreciation on the computer well the computer was purchased at 2300 and bonus depreciation is fifty percent of that so we get to take one thousand one hundred and fifty dollars in bonus depreciation on line...