During 2020, Pepe Guardio purchases the following property for use in his calendar year end manufacturing business Date Acquired Cost Item 550,000 Manufacturing equipment (7 year) Office Furniture June 2 September 15 November 18 8,000 2,000 orice computer Passenger automobile (used 85 percent for business) Warehouse May 31 55,000 July 23 170,000 Building Land 135,000 Pepe uses the accelerated depreciation method under MACRS and takes bonus depreciation Complete Form 4562 Depreciation and Amortization to determine the depreciation expense It required, round your answers to the nearest dollar. If an amount is zero, enter "0". Enter amounts as positive numbers. Click here to access the depreciation tables and here to view Table 8.1Recovery Periods for Assets Placed in Service Arter 1986 and Annual automobile depreciation Limitations OMB No 1545-0172 Form 4562 2020 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return Department of the Thury Internal Attachment Assignment/akcAssignment 2020 Department of the (Including Information on Listed Property) Treasury Internal Attach to your tax return Attachment Revenue Service (99) Go to www.irs.gov/form4562 for instructions and the latest Information Sequence No. 179 Name(s) shown on return Business of activity to which this form relates Identifying number Pepe Guardio Manufacturing Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part before you complete Parti 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (see instructions) 2 3 Threshold cost of section 179 property before reduction in limitation (see Instructions) 3 4 Reduction in limitation Subtract line from line 2. If zero or less, enter -- 4 Dollar limitation for tax year. Subtract line 4 from tine 1. If nero or less, enter. If married ning separately. See instructions 5 6 (0) Description of property () Cost (business use only) (c) Elected cost 9 2 Usted property. Enter the amount from line 29 2 Total elected cost of section 179 property. Add amounts in column (), lines 6 and 7 9 Tentative deduction Enter the smaller of line Sorin. 10 Carryover of disallowed deduction from the 13 of your 2019 Form 4562 11 Business income imitation Enter the smaller of business income (notess than zero) or line 5. See Instructions 10 11 14 15 16 17 Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See Instructions.) 14 Special depreciation allowance for qualified property (other than listed property placed in service during the tax year. See Instructions 15 Property subject to section 168(1)(1) election 16 Other depreciation (including ACRS) Part 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 2020 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 3-Assets Placed in Service During 2020 Tax Year Using the General Depreciation System (c) Basis for depreciation (d) (a) Classification or (b) Month and year placed (0) () (business/investment use only see Recovery property in service Convention Method Instructions) period 19a 3-year property b 5-year property 67-year property (0) Depreciation deduction d 10 year property e 15-year property f 20-year property 27.5 yrs MM SA property 1 Nonresidential real 39 yrs MM SAL property MM S/L Section C-Assets placed in Service During 2020 Tax Year Using the Alternative Depreciation System SAL 20a Classic b 12 year 12 yrs. S/L C 30 year 30 yrs MM S/L d 40 year 40 yrs MM SAL Part IV 21 Summary (See instructions.) 21 Usted property, Enter amount from line 28 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations -- see instructions 23 Por 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 22 Form 4562 (2020 Page 2 Form 4562 (2020) Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for entertainment, recreation or amusement Note: For any vehicle for which you are using the standard lagu through (C) of Section A all of Section B, and Section Cir applicable. Section A-Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the business/investment use calmed? Yes No 24b If "Yes," is the evidence written? Yes (a) (b) (c) (e) () (h) NO e (a) (0) Elected Depreciation sector deduction 129 Cost Type of property list vehicles first) Basis for Business/ depreciation investment Cost or Date placed in service (business/ Recovery period Method/ Convention use other basis investment percentage use only) Special depredation 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 Property used more than 50% in a qualified business use 25 26 % 27 Property used 50% or less in a qualified business use: 90 S/L 96 S/L- S/L Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 1 33.33 14.29 20.00 32.00 10.00 18.00 3.750 7.219 2 44.45 5.00 9.50 8.55 24.49 3 19.20 14.40 6,677 14.81 - 7.41 4 11.52 5 11.52 5.76 17.49 12.49 8.93 8.92 8.93 6 11.52 9.22 7.37 6.55 - 6.55 6.56 7 8 4.46 6.177 5.713 5.285 4.888 4.522 4.462 - 4.461 4.462 4.461 9 10 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 6.55 11 3.28 12 13 4.462 14 15 16 4,461 4,462 4.461 4,462 17 18 19 4.461 4,462 20 4.461 21 2.231 Switch in straine lien dan Straight-Line Depreciation for Personal Property, Assuming Half-Year Convention (For Property Placed in Service after December 31, 1986) Recovery Period % First Recovery Year Other Recovery Years Years % Last Recovery Years Year % 16.67 4 16.67 33.33 20.00 6 10.00 10.00 7.14 3-year 5-year 7-year 10-year 15-year 20-year 2-3 2-5 2-7 2-10 2-15 8 11 5.00 3.33 2.50 14.29 10.00 6.67 5.00 7.14 5.00 3.33 16 21 2-20 2.50 *The official table contains a separate row for each year. For ease of presentation, certain years are grouped together in this table. In some instances, this will cause a difference of .01 percent for the last digit when compared with the official table, TABLE 8.5 Straight-Line Depreciation for Real Property Assuming Mid-Month Convention 27.5-Year Residential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): 10 11 12 1.970 1.061 Recovery Yearts) 1 2-18 19-27 28 1.667 3.636 0.758 3.636 0.455 3.636 0.152 3.636 3.485 3.182 3.636 3.636 3.637 3.637 1.970 2.273 0.000 0.000 2.879 3.636 3.637 2.576 0.000 2.576 2.273 3.636 3.636 3.637 3.637 2.879 3.182 0.000 0.000 3.636 3.637 3.485 1.364 3.636 3.637 3.636 0.455 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.636 29 0.000 0.152 0.758 1.061 1.364 1.667 39-Year Nonresidential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service); Recovery Year) 1 10 11 12 0.963 0.535 2.461 2.564 0.107 2-39 40 2.247 2.564 0.321 2.033 2.564 0.535 1.819 2.564 0.749 1.605 2.564 1.391 2.564 1.177 1.177 2.564 1.391 0.749 2.564 1.819 2.564 1.605 2.564 0.321 2.564 2.247 0.107 2.564 2.461 0.963 2.033 The official tables contain a separate row for each year. For ease of presentation, certain years are groupes together in the in TABLE 8.1 Recovery Period 3-year 5-year Assets 7-year RECOVERY PERIODS FOR ASSETS PLACED IN SERVICE AFTER 1986 Recovery Method 200% declining balance ADR midpoint life of 4 years or less, excluding cars and light trucks. 200% declining balance ADR midpoint life of more than 4 years but less than 10 years, cars and light trucks, office machinery, certain energy property, R&D property. computers, and certain equipment 200% declining balance ADR midpoint life of 10 years or more but less than 16 years and property without an ADR life (e.g., most business furniture and certain equipment). 200% declining balance ADR midpoint life of 16 years or more but less than 20 years, including trees and vines. 150% declining balance ADR midpoint life of 20 years or more but less than 25 years, including treatment plants and land improvements (sidewalks, roads, fences, and landscaping) 150% declining balance ADR midpoint life of 25 years or more, other than real property with an ADR life of 27.5 years or longer and municipal sewers. Straight line Residential rental real estate, elevators, and escalators Straight-line Other real property purchased generally on or after May 13, 1993 (previously 31.5.year straight-line) 10-year 15-year mens wawak.com 20-year 27.5.year 39-year ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONS Year of Use 2019 and 2020 Limits Year 1 $18,100* Year 2 16,100 Year 3 9,700 Year 4 (and subsequent 5,760 years until fully depreciated) "Additional bonus depreciation of $8,000 is included in this amount. During 2020, Pepe Guardio purchases the following property for use in his calendar year end manufacturing business Date Acquired Cost Item 550,000 Manufacturing equipment (7 year) Office Furniture June 2 September 15 November 18 8,000 2,000 orice computer Passenger automobile (used 85 percent for business) Warehouse May 31 55,000 July 23 170,000 Building Land 135,000 Pepe uses the accelerated depreciation method under MACRS and takes bonus depreciation Complete Form 4562 Depreciation and Amortization to determine the depreciation expense It required, round your answers to the nearest dollar. If an amount is zero, enter "0". Enter amounts as positive numbers. Click here to access the depreciation tables and here to view Table 8.1Recovery Periods for Assets Placed in Service Arter 1986 and Annual automobile depreciation Limitations OMB No 1545-0172 Form 4562 2020 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return Department of the Thury Internal Attachment Assignment/akcAssignment 2020 Department of the (Including Information on Listed Property) Treasury Internal Attach to your tax return Attachment Revenue Service (99) Go to www.irs.gov/form4562 for instructions and the latest Information Sequence No. 179 Name(s) shown on return Business of activity to which this form relates Identifying number Pepe Guardio Manufacturing Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part before you complete Parti 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (see instructions) 2 3 Threshold cost of section 179 property before reduction in limitation (see Instructions) 3 4 Reduction in limitation Subtract line from line 2. If zero or less, enter -- 4 Dollar limitation for tax year. Subtract line 4 from tine 1. If nero or less, enter. If married ning separately. See instructions 5 6 (0) Description of property () Cost (business use only) (c) Elected cost 9 2 Usted property. Enter the amount from line 29 2 Total elected cost of section 179 property. Add amounts in column (), lines 6 and 7 9 Tentative deduction Enter the smaller of line Sorin. 10 Carryover of disallowed deduction from the 13 of your 2019 Form 4562 11 Business income imitation Enter the smaller of business income (notess than zero) or line 5. See Instructions 10 11 14 15 16 17 Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See Instructions.) 14 Special depreciation allowance for qualified property (other than listed property placed in service during the tax year. See Instructions 15 Property subject to section 168(1)(1) election 16 Other depreciation (including ACRS) Part 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 2020 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 3-Assets Placed in Service During 2020 Tax Year Using the General Depreciation System (c) Basis for depreciation (d) (a) Classification or (b) Month and year placed (0) () (business/investment use only see Recovery property in service Convention Method Instructions) period 19a 3-year property b 5-year property 67-year property (0) Depreciation deduction d 10 year property e 15-year property f 20-year property 27.5 yrs MM SA property 1 Nonresidential real 39 yrs MM SAL property MM S/L Section C-Assets placed in Service During 2020 Tax Year Using the Alternative Depreciation System SAL 20a Classic b 12 year 12 yrs. S/L C 30 year 30 yrs MM S/L d 40 year 40 yrs MM SAL Part IV 21 Summary (See instructions.) 21 Usted property, Enter amount from line 28 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations -- see instructions 23 Por 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 22 Form 4562 (2020 Page 2 Form 4562 (2020) Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for entertainment, recreation or amusement Note: For any vehicle for which you are using the standard lagu through (C) of Section A all of Section B, and Section Cir applicable. Section A-Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the business/investment use calmed? Yes No 24b If "Yes," is the evidence written? Yes (a) (b) (c) (e) () (h) NO e (a) (0) Elected Depreciation sector deduction 129 Cost Type of property list vehicles first) Basis for Business/ depreciation investment Cost or Date placed in service (business/ Recovery period Method/ Convention use other basis investment percentage use only) Special depredation 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 Property used more than 50% in a qualified business use 25 26 % 27 Property used 50% or less in a qualified business use: 90 S/L 96 S/L- S/L Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 1 33.33 14.29 20.00 32.00 10.00 18.00 3.750 7.219 2 44.45 5.00 9.50 8.55 24.49 3 19.20 14.40 6,677 14.81 - 7.41 4 11.52 5 11.52 5.76 17.49 12.49 8.93 8.92 8.93 6 11.52 9.22 7.37 6.55 - 6.55 6.56 7 8 4.46 6.177 5.713 5.285 4.888 4.522 4.462 - 4.461 4.462 4.461 9 10 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 6.55 11 3.28 12 13 4.462 14 15 16 4,461 4,462 4.461 4,462 17 18 19 4.461 4,462 20 4.461 21 2.231 Switch in straine lien dan Straight-Line Depreciation for Personal Property, Assuming Half-Year Convention (For Property Placed in Service after December 31, 1986) Recovery Period % First Recovery Year Other Recovery Years Years % Last Recovery Years Year % 16.67 4 16.67 33.33 20.00 6 10.00 10.00 7.14 3-year 5-year 7-year 10-year 15-year 20-year 2-3 2-5 2-7 2-10 2-15 8 11 5.00 3.33 2.50 14.29 10.00 6.67 5.00 7.14 5.00 3.33 16 21 2-20 2.50 *The official table contains a separate row for each year. For ease of presentation, certain years are grouped together in this table. In some instances, this will cause a difference of .01 percent for the last digit when compared with the official table, TABLE 8.5 Straight-Line Depreciation for Real Property Assuming Mid-Month Convention 27.5-Year Residential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service): 10 11 12 1.970 1.061 Recovery Yearts) 1 2-18 19-27 28 1.667 3.636 0.758 3.636 0.455 3.636 0.152 3.636 3.485 3.182 3.636 3.636 3.637 3.637 1.970 2.273 0.000 0.000 2.879 3.636 3.637 2.576 0.000 2.576 2.273 3.636 3.636 3.637 3.637 2.879 3.182 0.000 0.000 3.636 3.637 3.485 1.364 3.636 3.637 3.636 0.455 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.636 29 0.000 0.152 0.758 1.061 1.364 1.667 39-Year Nonresidential Real Property The applicable annual percentage is (use the column for the month in the first year the property is placed in service); Recovery Year) 1 10 11 12 0.963 0.535 2.461 2.564 0.107 2-39 40 2.247 2.564 0.321 2.033 2.564 0.535 1.819 2.564 0.749 1.605 2.564 1.391 2.564 1.177 1.177 2.564 1.391 0.749 2.564 1.819 2.564 1.605 2.564 0.321 2.564 2.247 0.107 2.564 2.461 0.963 2.033 The official tables contain a separate row for each year. For ease of presentation, certain years are groupes together in the in TABLE 8.1 Recovery Period 3-year 5-year Assets 7-year RECOVERY PERIODS FOR ASSETS PLACED IN SERVICE AFTER 1986 Recovery Method 200% declining balance ADR midpoint life of 4 years or less, excluding cars and light trucks. 200% declining balance ADR midpoint life of more than 4 years but less than 10 years, cars and light trucks, office machinery, certain energy property, R&D property. computers, and certain equipment 200% declining balance ADR midpoint life of 10 years or more but less than 16 years and property without an ADR life (e.g., most business furniture and certain equipment). 200% declining balance ADR midpoint life of 16 years or more but less than 20 years, including trees and vines. 150% declining balance ADR midpoint life of 20 years or more but less than 25 years, including treatment plants and land improvements (sidewalks, roads, fences, and landscaping) 150% declining balance ADR midpoint life of 25 years or more, other than real property with an ADR life of 27.5 years or longer and municipal sewers. Straight line Residential rental real estate, elevators, and escalators Straight-line Other real property purchased generally on or after May 13, 1993 (previously 31.5.year straight-line) 10-year 15-year mens wawak.com 20-year 27.5.year 39-year ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONS Year of Use 2019 and 2020 Limits Year 1 $18,100* Year 2 16,100 Year 3 9,700 Year 4 (and subsequent 5,760 years until fully depreciated) "Additional bonus depreciation of $8,000 is included in this amount
