Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.4, 8.5) During 2021, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business: Item Date Acquired Cost June 2 $50,000 Manufacturing equipment (7 year) Office furniture September 15 8,000 Office computer November 18 2,000 Passenger automobile (used 85 percent for business) May 31 55,000 Warehouse July 23 Building 170,000 Land 135,000 Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of a bonus depreciation. Use Form 4562 to report Pepe's depreciation expense for 2021. Enter all amounts as positive numbers. If required, round to the nearest dollar. If an amount is zero, enter "0". OMB No. 1545- 0172 Form 4562 Department of Depreciation and Amortization the Treasury (Including Information on Listed Property) Internal Revenue Service (99) Name(s) shown on return Business or activity to which this form relates Pepe Guardia Manufacturing Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions). 2021 Attachment Sequence No. 179 Identifying number 1 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 3 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -- 4 4 5 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions. (b) Cost (a) Description of property (business Elected use only) cost 6 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 9 9 10 10 11 Tentative deduction. Enter the smaller of line 5 or line 8 Carryover of disallowed deduction from line 13 of your 2020 Form 4562 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 Carryover of disallowed deduction to 2022. Add lines 9 and 10, less line 12... 11 12 12 13 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 ..... 15 Property subject to section 168(f)(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 2021 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 2021 Tax Year Using the General Depreciation System (a) Classification of (b) Month and year property placed in service (c) Basis for depreciation (business/investment (d) Recovery use only-see period instructions) (e) Convention (1) Method (9) Depreciation deduction 19a 3-year property 5-year property b fill in the blank 1 5 yrs.7 yrs.5 yrs. MQHYHY 200 DB150 DB200 DB fill in the blank 5 fill in the blank 6 5 yrs.7 xus. yrs. MQHYHY 200 DB150 DB200 DB fill in the blank 10 d d 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental f 25 yrs. S/L h 27.5 yrs. MM S/L 27.5 yrs. MM S/L property Nonresidential real 04/2105/2107/2105/21 fill in the blank 12 39 yrs. MM S/L fill in the blank 13 12 yrs. S/L property MM S/L Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year c 30-year MM S/L d 40-year MM S/L Part TV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 fill in the blank 14 30 yrs. 40 yrs. 22 fill in the blank 15 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 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 (2021) Part Listed Property_Include automobiles, certain other vehicles, certain aircraft, and property used for V 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? 24b If "Yes," is the evidence written? Yes No Yes No (a) (b) (c) (d) (e) (f) (9) (h) (1) Basis for Business/ Cost Elected Type of property Date placed in or depreciation investment (list vehicles Recovery Method/ Depreciation section use service ather (business/ first) period investment Convention 179 deduction percentage basis cost use only) 25 Special depreciation allowance for qualified listed property placed in 25 service during the tax year and used more than 50% in a qualified business use. See Instructions .... 26 Property used more than 50% in a qualified business use: % fill in fill in Passenger automobile Odia uruter Lassenger automobile 05/2109/2107/2105/21 fill in the the blank 18% blank 19 fill in the blank 20 3 yrs. yrs.7 yrs. HYMQDBHYDBMQHY yrs. fill in the blank 23 the blank 24 % 27 Property used 50% or less in a qualified business use: S/L- S/L- % S/L - 28 % 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1...... 29 Add amounts in column (D), line 26. Enter here and on line 7, page 1 fill in the blank 25 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. (a) (b) (c) (d) (e) (f) 30 Total business/investment miles driven during the Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 year (don't include commuting miles _. 31 Total commuting miles driven during the year 32 Total other personal (orosamouting) miles driven 33 Total miles driven during the year. Add lines 30 through 32. 34 Was the vehicle available for personal use Yes No Yes No Yes No Yes No Yes No Yes No 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 all personal use of vehicles, including commuting, by 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? Yes No 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," don't complete Section B for the covered vehicles. Part VI Amortization (a) (b) (c) (d) (e) Description of Date amortization Amortizable Code Amortization period or costs begins amount section percentage 42 Amortization of costs that begins during your 2021 tax year (see instructions): (f) Amortization for this year 43 43 Amortization of costs that began before your 2021 tax year ..... 44 Total. Add amounts in column (f). See the instructions for where to report.. 44 Form 4562 (2021) Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.4, 8.5) During 2021, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business: Item Date Acquired Cost June 2 $50,000 Manufacturing equipment (7 year) Office furniture September 15 8,000 Office computer November 18 2,000 Passenger automobile (used 85 percent for business) May 31 55,000 Warehouse July 23 Building 170,000 Land 135,000 Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of a bonus depreciation. Use Form 4562 to report Pepe's depreciation expense for 2021. Enter all amounts as positive numbers. If required, round to the nearest dollar. If an amount is zero, enter "0". OMB No. 1545- 0172 Form 4562 Department of Depreciation and Amortization the Treasury (Including Information on Listed Property) Internal Revenue Service (99) Name(s) shown on return Business or activity to which this form relates Pepe Guardia Manufacturing Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions). 2021 Attachment Sequence No. 179 Identifying number 1 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 3 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -- 4 4 5 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions. (b) Cost (a) Description of property (business Elected use only) cost 6 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 9 9 10 10 11 Tentative deduction. Enter the smaller of line 5 or line 8 Carryover of disallowed deduction from line 13 of your 2020 Form 4562 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 Carryover of disallowed deduction to 2022. Add lines 9 and 10, less line 12... 11 12 12 13 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 ..... 15 Property subject to section 168(f)(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 2021 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 2021 Tax Year Using the General Depreciation System (a) Classification of (b) Month and year property placed in service (c) Basis for depreciation (business/investment (d) Recovery use only-see period instructions) (e) Convention (1) Method (9) Depreciation deduction 19a 3-year property 5-year property b fill in the blank 1 5 yrs.7 yrs.5 yrs. MQHYHY 200 DB150 DB200 DB fill in the blank 5 fill in the blank 6 5 yrs.7 xus. yrs. MQHYHY 200 DB150 DB200 DB fill in the blank 10 d d 7-year property 10-year property 15-year property 20-year property 25-year property Residential rental f 25 yrs. S/L h 27.5 yrs. MM S/L 27.5 yrs. MM S/L property Nonresidential real 04/2105/2107/2105/21 fill in the blank 12 39 yrs. MM S/L fill in the blank 13 12 yrs. S/L property MM S/L Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year c 30-year MM S/L d 40-year MM S/L Part TV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 fill in the blank 14 30 yrs. 40 yrs. 22 fill in the blank 15 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 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 (2021) Part Listed Property_Include automobiles, certain other vehicles, certain aircraft, and property used for V 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? 24b If "Yes," is the evidence written? Yes No Yes No (a) (b) (c) (d) (e) (f) (9) (h) (1) Basis for Business/ Cost Elected Type of property Date placed in or depreciation investment (list vehicles Recovery Method/ Depreciation section use service ather (business/ first) period investment Convention 179 deduction percentage basis cost use only) 25 Special depreciation allowance for qualified listed property placed in 25 service during the tax year and used more than 50% in a qualified business use. See Instructions .... 26 Property used more than 50% in a qualified business use: % fill in fill in Passenger automobile Odia uruter Lassenger automobile 05/2109/2107/2105/21 fill in the the blank 18% blank 19 fill in the blank 20 3 yrs. yrs.7 yrs. HYMQDBHYDBMQHY yrs. fill in the blank 23 the blank 24 % 27 Property used 50% or less in a qualified business use: S/L- S/L- % S/L - 28 % 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1...... 29 Add amounts in column (D), line 26. Enter here and on line 7, page 1 fill in the blank 25 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. (a) (b) (c) (d) (e) (f) 30 Total business/investment miles driven during the Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 year (don't include commuting miles _. 31 Total commuting miles driven during the year 32 Total other personal (orosamouting) miles driven 33 Total miles driven during the year. Add lines 30 through 32. 34 Was the vehicle available for personal use Yes No Yes No Yes No Yes No Yes No Yes No 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 all personal use of vehicles, including commuting, by 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? Yes No 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," don't complete Section B for the covered vehicles. Part VI Amortization (a) (b) (c) (d) (e) Description of Date amortization Amortizable Code Amortization period or costs begins amount section percentage 42 Amortization of costs that begins during your 2021 tax year (see instructions): (f) Amortization for this year 43 43 Amortization of costs that began before your 2021 tax year ..... 44 Total. Add amounts in column (f). See the instructions for where to report.. 44 Form 4562 (2021)