During 2018, Palo Fiero purchases the following property for use in his calendar year-end manufacturing business:

Item	Date Acquired	Cost
Manufacturing equipment (7 year)	June 2	$38,000
Office furniture	September 15	5,400
Office computer	November 18	3,800
Passenger automobile (used 90 percent for business)	May 31	55,600
Warehouse	April 23
Building		170,000
Land		135,000

Palo uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense or take a bonus depreciation.

Use Form 4562 to report Palo's depreciation expense for 2018.

Enter all amounts as positive numbers. If required, round to the nearest dollar. If an amount is zero, enter "0".

art III		MACRS Depreciation (Don't include listed property. See instructions.)
Section A

17	MACRS deductions for assets placed in service in tax years beginning before 2018 . . . . . . . . . . . . . . .	17
18	If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here
Section BAssets Placed in Service During 2018 Tax Year Using the General Depreciation System

(a) Classification of property		(b) Month and year placed in service	(c) Basis for depreciation (business/investment use onlysee instructions)	(d) Recovery period	(e) Convention	(f) Method	(g) Depreciation deduction
19a	3-year property
b	5-year property
c	7-year property
d	10-year property
e	15-year property
f	20-year property
g	25-year property			25 yrs.		S/L
h	Residential rental			27.5 yrs.	MM	S/L
	property			27.5 yrs.	MM	S/L
i	Nonresidential real			39 yrs.	MM	S/L
	property				MM	S/L
Section CAssets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System
20a	Class life					S/L
b	12-year			12 yrs.		S/L
c	30-year			30 yrs.	MM	S/L
d	40-year			40 yrs.	MM	S/L

Part IV

Summary (See instructions.)

21	Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .			21
22	Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instructions . . . . . . . . . . . . . . . . . . .			22
23	For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	23

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 12906N

Form 4562 (2018)

Form 4562 (2018)

Page 2

Part V		Listed Property (Include automobiles, certain other vehicles, and property used for entertainment,
		recreation, or amusement.)
		Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section ADepreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)

24a Do you have evidence to support the business/investment use claimed? Yes No

24b If "Yes," is the evidence written? Yes No

(a)		(b)	(c)	(d)	(e)	(f)	(g)		(h)		(i)
Type of property (list vehicles first)		Date placed in service	Business/ investment use percentage	Cost or other basis	Basis for depreciation (business/ investment use only)	Recovery period	Method/ Convention		Depreciation deduction		Elected section 179 cost
25	Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use. See instructions . . . . . . . . . . .							25
26	Property used more than 50% in a qualified business use:
			%
			%
			%
27	Property used 50% or less in a qualified business use:
		%					S/L -
		%					S/L -
		%					S/L -
28	Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . . . . . . . . . . .							28
29	Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . . . . . . . . . . . . . . .									29