IRS Form 4562 (Depreciation & Amortization) - Bonus Depreciation for 2023

Form 4562 Section 179 Deduction: • IRS Form 4562 (Depreci...
Form 4562 for Disallowed Section 179: • IRS Form 4562 (Depreci...
IRS Form 4562 reports regular depreciation & amortization, Section 179 expense, and special bonus depreciation.
For this example, we look at an S corporation's Form 4562 to claim bonus deprecation on a heavy vehicle and computer equipment. The bonus depreciation amount for 2023 is limited to 80% of the cost basis of the property.
For more information on depreciation for businesses, view the Form 4562 instructions and IRS Publication 946.
For a larger database of tutorials, please visit our website and search for your question:
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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#Form4562 #BonusDepreciation #Section179

[@user-hn7os3pf4y]

Thank you for this great video. Your illustration and the IRS form together make much sense! Very practical examples

[@texasRoofDoctor]

Thank you for this. I have watched multiple videos on this and yours was by far the most comprehensive. My son Bought an suv for his agricultural business since the property is accessible only via a “seasonal ranch road” meaning without the 4WD, it would be impossible to access the crops from November through May.

[@JasonDKnott]

Glad to hear it was helpful!

[@texasRoofDoctor]

The beauty of GVWR is the most important part. The car manufacturers have geared almost all of the expensive SUV’s to a gvwr of 6,201 or greater. Genius.

[@wandamaldonado8534]

Thank you very much for such a detailed video showing how to obtain the final figures and where to locate them on the form 1120 S.

[@hakimmessaoudi1805]

thank you for this amazing video.

[@JasonDKnott]

You're very welcome!

[@WABoothPlumbing]

Great video! Thanks for the information!

[@BrendaGerlitz]

Thanks for the great video. I had a deduction last year of $3,776 5-year property Line 19b. I did the HY and 200 DB for a deduction of $755. Where do I claim my deduction for this year and the following years until depleted? Thanks

[@BrendaGerlitz]

Great video. I am hoping you can help me with this question. In 2022 I had a $3,776 5 year property deduction (Line 19b) . I did the HY with the 200 DB method for a total of $755. Where do I claim the remainder of the deduction this year and future years until it is depleted? Thanks

[@craigfuller1424]

In this example does the Yukon qualify as more than 6000 lbs? Is it empty weight or gross max load? Thank you. I found this vid very useful.

[@note4shawn]

Great video! Exactly what I was looking for. It cleared up a lot. I do have one question about the Startup Costs you mentioned. I was under the impression that you only include the Amortized part on Form 4562 and the deduction part (

[@craigfuller1424]

Wait. I can get the bonus depreciation PLUS regular depreciation for the same year using adjusted basis? Clever.

[@jameskwak1673]

Thank you for very informative video. Are we able to take both Bonus and Sec. 179 on the same property?

[@alexcolombu1025]

As far as I know, yes you can. But it would have to be real expensive as per the limits stated in the video. Additional if that property is of a particular class and you have properties that are also of that class, you must take the depreciation on all those same classes uniformly as far as I understand.

[@samkeino6810]

Great video. If claiming bonus depreciation and 179 for a heavy truck ( I realize it does not work for this company), do you first apply the section 179 and then the bonus depreciation?

[@alexcolombu1025]

Yes. You apply the section 179 first and then anything left over the 179 limit goes to bonus depreciation. Hope this helps. Edit: One thing I forgot to add is that you can also (after taking both the former depreciations) also take normal depreciation for what's left over.