Federal tax form 4562 2017-2025

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Go to .irs.gov/Form4562 for instructions and the latest information. Note: If you have any listed property, complete Part V before you complete Part I. 7 Listed property.
Form 4562 is required for each year that a business client is depreciating or amortizing any assets and deducting that expense on their tax return.
The rules allowed Bonus Depreciation to 100% for all qualified purchases made between September 27, 2017 and January 1, 2023. Bonus Depreciation ramped down to 80% in 2023, and will be reduced to 60% for 2024.
Qualified property eligible for bonus depreciation includes depreciable assets with a recovery period of 20 years or less, such as vehicles, furniture, manufacturing equipment, and heavy machinery.
Bonus depreciation typically applies to tangible personal property, such as machinery, equipment, furniture, and vehicles, as well as certain qualified improvement property and specific types of real property improvements. These assets must have a useful life of 20 years or less.
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Heavy SUVs, pickups, and vans over 6000 lbs. and mainly used for business can get a partial deduction and bonus depreciation. Typical work vehicles without personal use qualify. Cargo vans and box trucks with no passenger seating can qualify. Specialty vehicles like ambulances and hearses often qualify.
TCJA canceled that phase out and offered 100% bonus depreciation from 2018 through 2022, with the value of bonus depreciation declining 20 percentage points in each year from 2023 through 2026 until it docHubes 0% from 2027 onwards.
In order to qualify for bonus depreciation deduction, certain criteria must be met. Qualifying assets can include: Modified Accelerated Cost Recovery System (MACRS) property with a recovery period of 20 years or less. This includes such property as computer equipment and office furniture.

4562 2018 form