Fill-in-the-Form: Prepare Form 4562, Depreciation and Amortization, for James Hamilton using the information provided. Your instructor will provide a blank Form 4562. James E. Hamilton (SSN 556-84-5502) is a sole proprietor. During 2018, he placed in service the following property: April 14: Used machine costing $ 20,000 October 14: New computer costing 2,500 October 29: Nonresidential realty costing 150,000 James does not want to elect Section 179 expense in 2018. However, he wants to depreciate the property using both MACRS and bonus depreciation (when bonus depreciation is allowed). In addition to the three properties listed above, James is depreciating office furniture he purchased in April of 2016 for $12,000. James took bonus depreciation in 2016 and uses regular (accelerated) MACRS and the half-year convention to depreciate the remaining MACRS basis of the furniture. ON 1545-017 F4562 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.insgow Form4562 for instructions and the latest information Business of activity to which has forma s 2018 179 Dep o re Treasury Na shown on tum Parti Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (noe instructions 3 Threshold cost of section 179 property before reduction in imitation (see instructions 4 Reduction in limitation. Subtract line 3 trom line 2. If zero or less entero- 5 Dollar Imitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately see instructions - Desorption of property Cost business use only Eected cost 7 Usted property. Enter the amount from line 29 7 8 Total elected cost of section 179 property. Add amounts in column icl lines 6 and 7 B 9 Tentative deduction Enter the smaller of line 5 or line 8. 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. See instructions. 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 13 Note: Don't use Partilor Part I below for listed property Instead, use Part V. Part Il 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(t) election. . . . . . . . 16 Other depreciation including ACRS) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 17 MACRS deductions for assets placed in service in tax years beginning before 2018. 18 you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . Section B-Assets placed in Service During 2018 Tax Year Using the General Depreciation System More w o rn Recovery Classication of property Method to Deprecio deduction pod 19a 3-year property b 5-year property 7-year property d 10-year property e 15-year property 1 20-year property 1 25-year property SIL h Residential rental 275 MM property 27.5 MM Nonresidential real 39 yrs. MM property MM Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class line b 12-year 12 yrs. c 30-year 30yrs. MM SIL d 40-year 40 yrs. MM SIL Part IV Summary See instructions.) 21 Listed property. Enter amount from line 28 19 ore 25 yrs 22 22 Total. Add amounts from ine 12, lines 14 through 17, Ines 19 and 20 in columnal and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations-see instructions . 23 for assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. For Paperwork Reduction Act Notice, se separate instructions. Cat No. 12806 Form 4562 2016) 2 properly used for PS Part V Listed Property include automobiles certain other vehicles certain aircraft and Pop entertainment, recreation, or amusement) Note: For any vehicle for which you are using the standard de e pense 24b. columns la through of Section All of Section B and Section C oplicable Section A-Depreciation and Other Information Caution: See the sons for its for passenger auto 243 Do you have evidence to support the business investment y 24 Y e vdance with Type of property De inery whicles ru Cost or other bei unse ecovery Method percentage period Cortionden 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 You 27 Property used 50% or less in a qualified busine 26 Add amounts in column (hi, lines 25 through 27. Enter here and on line 21, page 1 2 8 29 Add amounts in column line 26. Enter here and on Ine 7, page 1 Section Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner or other more than 5% owner" or related person. If you provided vehicles to your employees, first answer the questions in Section to see you meet an exception to completing this section for those vehicles 30 Total business/investment miles driven during Verde 1 Vehicle 2 Vehicle 3 the year (don't include commuting miles) 31 Total commuting mies driven during the year 32 Total other personal (noncommuting miles driven 33 Total miles driven during the year. Add lines 30 through 32.. . 34 Was the vehicle available for personal use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36 is another vehicle available for personal use? Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section for vehicles used by employees who aren't more than 5% owners or related persons. See instructions. 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes your employees? . . . . . . . 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received?. .. 41 Do you meet the requirements concerning qualified automobile demonstration use? Soe instructions. . Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," don't complete Section B for the covered vehicles Part VI Amortization Description of costs Due t o begins Amortable amount Code section 42 Amortization of costs that begins during your 2018 tax year ise instructions I Amortization periodon percentage Amortion for this 43 Amortization of costs that began before your 2018 tax year.. 44 Total. Add amounts in column. See the instructions for where to report 44 Form 4562 2018 Fill-in-the-Form: Prepare Form 4562, Depreciation and Amortization, for James Hamilton using the information provided. Your instructor will provide a blank Form 4562. James E. Hamilton (SSN 556-84-5502) is a sole proprietor. During 2018, he placed in service the following property: April 14: Used machine costing $ 20,000 October 14: New computer costing 2,500 October 29: Nonresidential realty costing 150,000 James does not want to elect Section 179 expense in 2018. However, he wants to depreciate the property using both MACRS and bonus depreciation (when bonus depreciation is allowed). In addition to the three properties listed above, James is depreciating office furniture he purchased in April of 2016 for $12,000. James took bonus depreciation in 2016 and uses regular (accelerated) MACRS and the half-year convention to depreciate the remaining MACRS basis of the furniture. ON 1545-017 F4562 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.insgow Form4562 for instructions and the latest information Business of activity to which has forma s 2018 179 Dep o re Treasury Na shown on tum Parti Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 property placed in service (noe instructions 3 Threshold cost of section 179 property before reduction in imitation (see instructions 4 Reduction in limitation. Subtract line 3 trom line 2. If zero or less entero- 5 Dollar Imitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately see instructions - Desorption of property Cost business use only Eected cost 7 Usted property. Enter the amount from line 29 7 8 Total elected cost of section 179 property. Add amounts in column icl lines 6 and 7 B 9 Tentative deduction Enter the smaller of line 5 or line 8. 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. See instructions. 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 13 Note: Don't use Partilor Part I below for listed property Instead, use Part V. Part Il 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(t) election. . . . . . . . 16 Other depreciation including ACRS) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 17 MACRS deductions for assets placed in service in tax years beginning before 2018. 18 you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . Section B-Assets placed in Service During 2018 Tax Year Using the General Depreciation System More w o rn Recovery Classication of property Method to Deprecio deduction pod 19a 3-year property b 5-year property 7-year property d 10-year property e 15-year property 1 20-year property 1 25-year property SIL h Residential rental 275 MM property 27.5 MM Nonresidential real 39 yrs. MM property MM Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class line b 12-year 12 yrs. c 30-year 30yrs. MM SIL d 40-year 40 yrs. MM SIL Part IV Summary See instructions.) 21 Listed property. Enter amount from line 28 19 ore 25 yrs 22 22 Total. Add amounts from ine 12, lines 14 through 17, Ines 19 and 20 in columnal and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations-see instructions . 23 for assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. For Paperwork Reduction Act Notice, se separate instructions. Cat No. 12806 Form 4562 2016) 2 properly used for PS Part V Listed Property include automobiles certain other vehicles certain aircraft and Pop entertainment, recreation, or amusement) Note: For any vehicle for which you are using the standard de e pense 24b. columns la through of Section All of Section B and Section C oplicable Section A-Depreciation and Other Information Caution: See the sons for its for passenger auto 243 Do you have evidence to support the business investment y 24 Y e vdance with Type of property De inery whicles ru Cost or other bei unse ecovery Method percentage period Cortionden 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 You 27 Property used 50% or less in a qualified busine 26 Add amounts in column (hi, lines 25 through 27. Enter here and on line 21, page 1 2 8 29 Add amounts in column line 26. Enter here and on Ine 7, page 1 Section Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner or other more than 5% owner" or related person. If you provided vehicles to your employees, first answer the questions in Section to see you meet an exception to completing this section for those vehicles 30 Total business/investment miles driven during Verde 1 Vehicle 2 Vehicle 3 the year (don't include commuting miles) 31 Total commuting mies driven during the year 32 Total other personal (noncommuting miles driven 33 Total miles driven during the year. Add lines 30 through 32.. . 34 Was the vehicle available for personal use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36 is another vehicle available for personal use? Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section for vehicles used by employees who aren't more than 5% owners or related persons. See instructions. 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes your employees? . . . . . . . 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received?. .. 41 Do you meet the requirements concerning qualified automobile demonstration use? Soe instructions. . Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," don't complete Section B for the covered vehicles Part VI Amortization Description of costs Due t o begins Amortable amount Code section 42 Amortization of costs that begins during your 2018 tax year ise instructions I Amortization periodon percentage Amortion for this 43 Amortization of costs that began before your 2018 tax year.. 44 Total. Add amounts in column. See the instructions for where to report 44 Form 4562 2018
