G Saved Required information [The following information applies to the questions displayed below.) Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2018 07/22/2018 08/17/2018 "Not considered a luxury automobile. During 2018, Karane was very successful and had no $179 limitations) and decided to acquire more assets in 2019 to increase its production capacity. These are the assets acquired during 2019: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 480,000 80,000 1,200, eee 789,000 Date Placed in Service 03/31/2019 05/26/2019 08/15/2019 11/13/2019 tUsed 100% for business purposes. Karane generated taxable income in 2019 of $1732,500 for purposes of computing the $179 expense. (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10. 10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) Saved Help Save & I USE TO A TU UUSUT purposes Karane generated taxable income in 2019 of $1,732,500 for purposes of computing the $179 expense. (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) Complete Part 1 of Form 4562 for part (b) (use the most current form available). Download the Tax Form and enter the required values in the appropriate fonds. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." Use 2019 tax rules regardless of year on tax form. download reference file upload a response file (15MB max) Choose File No file chosen 14562.pdf For 4562 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.in.gov/form4562 for instructions and the Intest Information Business or activity to which this for OMB No. 1545-0172 2018 Attachment Seanca No. 179 Identifying number Department of the 29 Names shown on retum 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 (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter-O- 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or loss, enter -0. If married filing separately, see instructions 6 a) Description of property th) Cost business un (c) Elected cost 1 2 3 4 5 7 Listed property. Enter the amount from line 29 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562 10 11 Business income limitation Enter the smaller of business income (not less than zero) or line 5. See instructions 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 12 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10. less line 12 13 Note: Don't use Part II or Part III below for listed property. Instead, use Part V. 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 14 15 Property subject to section 1680001) election 15 16 Other depreciation (including ACRS) 16 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 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 B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System Morch and Barocreation al station of property placed in Puter dcery Converno Service period tel Depreciation deduction 1993-year property b 5-year property Zaynar property d 10-year property Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (a) Classification of property Month d your Id Basis for depreciation placed in business investment Use Id Recovery le) Convention ( Method Service only see instructions) period fa) Depreciation deduction 19a 3-year property b 5-year property c7-year property d 10-year property e 15-year property f 20-year property 9 25-year property h Residential rental property i Nonresidential real property Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class life b 12-year c 30-year d 40-year 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 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. 23 For Paperwork Reduction Act Notice, see separate instructions. Cat No. 12906N Form 4562 2016 22 Page 2 Form 4562/2012 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 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 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 claimed? Yes No 24b Yas, is the evidence written? Yes No (a) c) bi ness in Id Basis for den 179 sktop/f4562.pdf Yes PA 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 mileage rate or deducting lease expense, complete only 24, 24b, columns (a) through (c) of Section A, all of Section B, and Section Cif applicable Section A-Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) No 24 "Yes," is the evidence written? Yes No 24a Do you have evidence to support the business/investment use claimed? 1 m al Busin Rasis for depreciation Method Depreciation Elected section 179 Type of property Dale placed vetene Cost or other base fusinester Recovery in service velices fint period Convention deduction Cost percentage use only 25 Specin 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: 96 9 % 27 Property used 50% or less in a qualified business use: 96 S/L- % SAL- 96 ISL- 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column line 26. Enter here and on line 7. page 1 29 Section B-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 if you meet an exception to completing this section for those vehicles. al Id m 30. Total business/investment miles driven during Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicles the year (don't include commuting miles) 31 Total commuting miles 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 persona Yes No Yes No Yes Yes No Yes No Yes No 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 de 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 B for vehicles used by employees who aren't more than 5% owners or related persons. See instruction 37 Do you maintain a written policy statement that prohibits al personal use of vehicles including commuting, by Yes No your employees 38 Do you maintin written policy statement that prohibits personal use of vehicles, except commuting by your mns No 27 Property or less in med businesse 5/L- SAL 15. 28 Add amounts in column in lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column line 26. Enter here and on line 7. page 1 29 Section B-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 if you meet an exception to completing this section for those vehicles. thi Ich id 30 Total businesinvestment miles driven during Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicles Vehicle the year don't include commuting miles) 31 Total commuting miles 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 No Yes Yes Yes No Yes No Yes No 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 B 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 al personal use of vehicles, including commuting, by Yes No 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? See Instructions. Note: If your answer to 37, 38, 39, 40, or 41 is "Yes I don't complete Section B for the covered vehicles. Part VI Amortization Yes 1 No No c) Amortible Date amortization begns Id Coce section Description of costs Amortization period or percentage Amortization for the year 42 Amortization of costs that begins during your 2018 tax year (See instructions): 43 Amortization of costs that began before your 2018 tax year 44 Total. Add amounts in column. See the instructions for where to report 43 44 For 4562 2018 Table 1 MACRS Half-Year Convention 3-Year 33.33% 20-Year 3.750% Year 1 Year 2 44.45 7.219 Year 3 14.81 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20.00% 14.29% 10.00% 5.00% 32.00 24.49 18.00 9.50 19.20 17.49 14.40 8.55 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 6.677 Year 4 7.41 Year 5 Year 6 6.177 5.713 5.285 4.888 4.522 Year 7 Year 8 4.46 6.55 5.90 Year 9 6.56 4.462 5.91 5.90 Year 10 6.55 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 4.462 Year 13 5.91 Year 14 5.90 4.461 Year 15 4.462 5.91 2.95 Year 16 4.461 4.462 Year 17 Year 18 4.461 Year 19 4.462 Year 20 4.461 2.231 Year 21 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5 Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 Year 7 8.74 8.75 1.09 Year 8 TABLE 26 MACRS Mid Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For propers placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 Month 12 0.15296 3.636 3.636 3.637 3.636 3.637 3.636 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 3.636 Year 29 0.152 0.455 Month 9 1.061% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 Month 10 Month 11 0.758% 0.455% 3.636 3.636 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 1.061 1.364 3.63 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.636 3.637 3.636 3.637 3.636 0.758 3.636 3.637 3.636 1.667 Month 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Month 12 0.13296 3.175 3.175 3.175 3.17 e . exto-d-media meducation.com/Media/Connect Production/accounting/spiker 11o/ch10 table.htm TABLE 4 Nonresidential Real Property Mid Month Convention Straight Line 31.5 Years for assets placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month Month 4 Months Month 6 Month 7 Month Month 9 Year 1 3.04296 2.778% 2.313% 2.249% 1.9849 1.72096 1.45596 1.190% 0.92646 Year 2-7 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Years 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 10 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 11 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 12 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 16 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 18 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 19 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 22 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 23 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 Year 24 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 25 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 26 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 28 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 31 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Month 11 0.3975 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 5.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 TABLE S Nonresidential Real Property Mid Month Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Months Meath 6 Month 7 Month & Month 9 Year 1 2.46196 2.247% 2.0334 1.819) 1.605% 1.391% 1.17796 0.963% 0.7499 Year 2-39 2.564 2.364 2.564 2560 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.335 0.749 0.963 1.177 1.391 1.605 1819 Month 12 0.1079 Month 10 0315% 2564 2.033 Month 11 0.3219 2.566 2.247 EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service 2019 2018 2017 2016 Recovery Year 1 10,000** 10,000* 3,160 3,160* Recovery Year 2 16,000 16,000 5,100 5,100 Recovery Year 3 9,600 9,600 3,050 3,050 Recovery Year 4 and after 5,760 5,760 1,875 1,875 *As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(b)(2)(F)]. G Saved Required information [The following information applies to the questions displayed below.) Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2018 07/22/2018 08/17/2018 "Not considered a luxury automobile. During 2018, Karane was very successful and had no $179 limitations) and decided to acquire more assets in 2019 to increase its production capacity. These are the assets acquired during 2019: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 480,000 80,000 1,200, eee 789,000 Date Placed in Service 03/31/2019 05/26/2019 08/15/2019 11/13/2019 tUsed 100% for business purposes. Karane generated taxable income in 2019 of $1732,500 for purposes of computing the $179 expense. (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10. 10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) Saved Help Save & I USE TO A TU UUSUT purposes Karane generated taxable income in 2019 of $1,732,500 for purposes of computing the $179 expense. (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) Complete Part 1 of Form 4562 for part (b) (use the most current form available). Download the Tax Form and enter the required values in the appropriate fonds. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." Use 2019 tax rules regardless of year on tax form. download reference file upload a response file (15MB max) Choose File No file chosen 14562.pdf For 4562 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.in.gov/form4562 for instructions and the Intest Information Business or activity to which this for OMB No. 1545-0172 2018 Attachment Seanca No. 179 Identifying number Department of the 29 Names shown on retum 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 (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter-O- 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or loss, enter -0. If married filing separately, see instructions 6 a) Description of property th) Cost business un (c) Elected cost 1 2 3 4 5 7 Listed property. Enter the amount from line 29 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562 10 11 Business income limitation Enter the smaller of business income (not less than zero) or line 5. See instructions 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 12 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10. less line 12 13 Note: Don't use Part II or Part III below for listed property. Instead, use Part V. 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 14 15 Property subject to section 1680001) election 15 16 Other depreciation (including ACRS) 16 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 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 B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System Morch and Barocreation al station of property placed in Puter dcery Converno Service period tel Depreciation deduction 1993-year property b 5-year property Zaynar property d 10-year property Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (a) Classification of property Month d your Id Basis for depreciation placed in business investment Use Id Recovery le) Convention ( Method Service only see instructions) period fa) Depreciation deduction 19a 3-year property b 5-year property c7-year property d 10-year property e 15-year property f 20-year property 9 25-year property h Residential rental property i Nonresidential real property Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class life b 12-year c 30-year d 40-year 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 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. 23 For Paperwork Reduction Act Notice, see separate instructions. Cat No. 12906N Form 4562 2016 22 Page 2 Form 4562/2012 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 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 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 claimed? Yes No 24b Yas, is the evidence written? Yes No (a) c) bi ness in Id Basis for den 179 sktop/f4562.pdf Yes PA 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 mileage rate or deducting lease expense, complete only 24, 24b, columns (a) through (c) of Section A, all of Section B, and Section Cif applicable Section A-Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) No 24 "Yes," is the evidence written? Yes No 24a Do you have evidence to support the business/investment use claimed? 1 m al Busin Rasis for depreciation Method Depreciation Elected section 179 Type of property Dale placed vetene Cost or other base fusinester Recovery in service velices fint period Convention deduction Cost percentage use only 25 Specin 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: 96 9 % 27 Property used 50% or less in a qualified business use: 96 S/L- % SAL- 96 ISL- 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column line 26. Enter here and on line 7. page 1 29 Section B-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 if you meet an exception to completing this section for those vehicles. al Id m 30. Total business/investment miles driven during Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicles the year (don't include commuting miles) 31 Total commuting miles 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 persona Yes No Yes No Yes Yes No Yes No Yes No 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 de 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 B for vehicles used by employees who aren't more than 5% owners or related persons. See instruction 37 Do you maintain a written policy statement that prohibits al personal use of vehicles including commuting, by Yes No your employees 38 Do you maintin written policy statement that prohibits personal use of vehicles, except commuting by your mns No 27 Property or less in med businesse 5/L- SAL 15. 28 Add amounts in column in lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column line 26. Enter here and on line 7. page 1 29 Section B-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 if you meet an exception to completing this section for those vehicles. thi Ich id 30 Total businesinvestment miles driven during Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicles Vehicle the year don't include commuting miles) 31 Total commuting miles 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 No Yes Yes Yes No Yes No Yes No 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 B 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 al personal use of vehicles, including commuting, by Yes No 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? See Instructions. Note: If your answer to 37, 38, 39, 40, or 41 is "Yes I don't complete Section B for the covered vehicles. Part VI Amortization Yes 1 No No c) Amortible Date amortization begns Id Coce section Description of costs Amortization period or percentage Amortization for the year 42 Amortization of costs that begins during your 2018 tax year (See instructions): 43 Amortization of costs that began before your 2018 tax year 44 Total. Add amounts in column. See the instructions for where to report 43 44 For 4562 2018 Table 1 MACRS Half-Year Convention 3-Year 33.33% 20-Year 3.750% Year 1 Year 2 44.45 7.219 Year 3 14.81 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20.00% 14.29% 10.00% 5.00% 32.00 24.49 18.00 9.50 19.20 17.49 14.40 8.55 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 6.677 Year 4 7.41 Year 5 Year 6 6.177 5.713 5.285 4.888 4.522 Year 7 Year 8 4.46 6.55 5.90 Year 9 6.56 4.462 5.91 5.90 Year 10 6.55 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 4.462 Year 13 5.91 Year 14 5.90 4.461 Year 15 4.462 5.91 2.95 Year 16 4.461 4.462 Year 17 Year 18 4.461 Year 19 4.462 Year 20 4.461 2.231 Year 21 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5 Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 Year 7 8.74 8.75 1.09 Year 8 TABLE 26 MACRS Mid Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For propers placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 Month 12 0.15296 3.636 3.636 3.637 3.636 3.637 3.636 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 3.636 Year 29 0.152 0.455 Month 9 1.061% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 Month 10 Month 11 0.758% 0.455% 3.636 3.636 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 1.061 1.364 3.63 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.636 3.637 3.636 3.637 3.636 0.758 3.636 3.637 3.636 1.667 Month 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Month 12 0.13296 3.175 3.175 3.175 3.17 e . exto-d-media meducation.com/Media/Connect Production/accounting/spiker 11o/ch10 table.htm TABLE 4 Nonresidential Real Property Mid Month Convention Straight Line 31.5 Years for assets placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month Month 4 Months Month 6 Month 7 Month Month 9 Year 1 3.04296 2.778% 2.313% 2.249% 1.9849 1.72096 1.45596 1.190% 0.92646 Year 2-7 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Years 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 10 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 11 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 12 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 16 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 18 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 19 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 22 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 23 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 Year 24 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 25 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 26 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 28 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 31 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Month 11 0.3975 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 5.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 TABLE S Nonresidential Real Property Mid Month Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Months Meath 6 Month 7 Month & Month 9 Year 1 2.46196 2.247% 2.0334 1.819) 1.605% 1.391% 1.17796 0.963% 0.7499 Year 2-39 2.564 2.364 2.564 2560 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.335 0.749 0.963 1.177 1.391 1.605 1819 Month 12 0.1079 Month 10 0315% 2564 2.033 Month 11 0.3219 2.566 2.247 EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service 2019 2018 2017 2016 Recovery Year 1 10,000** 10,000* 3,160 3,160* Recovery Year 2 16,000 16,000 5,100 5,100 Recovery Year 3 9,600 9,600 3,050 3,050 Recovery Year 4 and after 5,760 5,760 1,875 1,875 *As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(b)(2)(F)]
