Need help on the Depreciation Form.
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| Form 4562 Department of the Treasury Internal Revenue Service (99) | Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.irs.gov/Form4562 for instructions and the latest information. | OMB No. 1545-0172 | | 2019 Attachment Sequence No. 179 | | Name(s) shown on return Trish Himple | Business or activity to which this form relates Himple Retail | Identifying number 123-45-6789 | | 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. | | 1 | Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 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 | | | 4 | Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . | 4 | | | 5 | Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5 | | | 6 | (a) Description of property | (b) Cost (business use only) | (c) Elected cost | | | | | | | | | | | | | | | 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 2018 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 2020. 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 168(f)(1) 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 2019 . . . . . . . . . . . . | 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 2019 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 property | | | 27.5 yrs. | MM | S/L | | | | | | 27.5 yrs. | MM | S/L | | | i | Nonresidential real property | | | 39 yrs. | MM | S/L | | | | | | | MM | S/L | | | Section CAssets Placed in Service During 2019 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 (2019) | |
Comprehensive Problem 8-1 Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 4,000 Returns and allowances $ 85,000 Expenses: Beginning inventory (at cost) Add: purchases Cost of goods available for sale 101,000 $186,000 75,000 Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll $111,000 24,200 1,800 5,600 56,430 4,400 2,100 Payroll taxes Utilities Office supplies 750 Advertising 6,200 Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Trish also has a qualified home office of 250 sq. ft. Her home is 2,500 sq. ft. Her 2014 purchase price and basis in the home, not including land, is $100,000 (the home's market value is $150,000). She incurred the following costs in 2019 related to the entire home: Utilities Cleaning $2,800 900 1,100 Insurance Property taxes 2,000 Required: Complete Trish's Schedule C, Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required round any dollar amount to the nearest dollar. Tax Return 9 eBook Calculator Instructions Schedule of Fixed Asset Rollforward Schedule C Form 4562 Form 8829 Instructions Comprehensive Problem 8-1 Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 Returns and allowances 4,000 Expenses: Beginning inventory (at cost) $ 85,000 101,000 Add: purchases Cost of goods available for sale $186,000 75,000 Less: ending inventory (at cost) Cost of goods sold $111,000 Rent 24,200 Insurance Legal and accounting fees Payroll Payroll taxes 1,800 5,600 56,430 4,400 2,100 750 6,200 Utilities Office supplies Advertising Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Schedule of Fixed Asset Rollforward Trish's bookkeeper has provided the following book-basis fixed asset rollforward: Himple Retail Fixed Asset Rollforward 12/31/2019 (book basis) DEPR COST 2017 IN SERVICE METHOD LIFE BASIS DEPR 2/15/2017 SL 5 9 ,900.00 1,815.00 9,900.00 1,815.00 2019 ACCUM NET BOOK ASSET 2018 DEPR 1,980.00 DEPR VALUE DEPR 1,980.00 CASH REGISTER 5,775.00 4,125.00 2017 TOTAL ADDITIONS 1,980.00 1,980.00 5,775.00 4,125.00 RETAIL FIXTURES 848.21 10/12/2018 10/12/2018 SL SL 7 7 4,750.00 3,900.00 8,650.00 169.64 678.57 139.29557.14 FURNITURE 2018 TOTAL ADDITIONS TOTAL 696.43 3,901.79 3,203.57 7,105.36 11,230.36 1,544.64 308.93 2,288.93 1,235.71 3,215.71 18,550.00 1,815.00 7,319.64 37,500.00 4,375.00 4,375.00 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2019 TOTAL ADDITIONS TOTAL 6/1/2019 6/1/2019 6/1/2019 SL SL SL 5 7 5 991.67 11,900.00 2,800.00 991.67 326.67 326.67 33,125.00 10,908.33 2,473.33 46,506.66 57,737.02 52,200.00 5,693.34 5,693.34 13,012.98 70,750.00 1,815.00 2,288.93 8,909.05 Comprehensive Problem 8-1 Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 4,000 Returns and allowances $ 85,000 Expenses: Beginning inventory (at cost) Add: purchases Cost of goods available for sale 101,000 $186,000 75,000 Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll $111,000 24,200 1,800 5,600 56,430 4,400 2,100 Payroll taxes Utilities Office supplies 750 Advertising 6,200 Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Trish also has a qualified home office of 250 sq. ft. Her home is 2,500 sq. ft. Her 2014 purchase price and basis in the home, not including land, is $100,000 (the home's market value is $150,000). She incurred the following costs in 2019 related to the entire home: Utilities Cleaning $2,800 900 1,100 Insurance Property taxes 2,000 Required: Complete Trish's Schedule C, Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required round any dollar amount to the nearest dollar. Tax Return 9 eBook Calculator Instructions Schedule of Fixed Asset Rollforward Schedule C Form 4562 Form 8829 Instructions Comprehensive Problem 8-1 Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 Returns and allowances 4,000 Expenses: Beginning inventory (at cost) $ 85,000 101,000 Add: purchases Cost of goods available for sale $186,000 75,000 Less: ending inventory (at cost) Cost of goods sold $111,000 Rent 24,200 Insurance Legal and accounting fees Payroll Payroll taxes 1,800 5,600 56,430 4,400 2,100 750 6,200 Utilities Office supplies Advertising Trish's bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation (see separate tab). For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Schedule of Fixed Asset Rollforward Trish's bookkeeper has provided the following book-basis fixed asset rollforward: Himple Retail Fixed Asset Rollforward 12/31/2019 (book basis) DEPR COST 2017 IN SERVICE METHOD LIFE BASIS DEPR 2/15/2017 SL 5 9 ,900.00 1,815.00 9,900.00 1,815.00 2019 ACCUM NET BOOK ASSET 2018 DEPR 1,980.00 DEPR VALUE DEPR 1,980.00 CASH REGISTER 5,775.00 4,125.00 2017 TOTAL ADDITIONS 1,980.00 1,980.00 5,775.00 4,125.00 RETAIL FIXTURES 848.21 10/12/2018 10/12/2018 SL SL 7 7 4,750.00 3,900.00 8,650.00 169.64 678.57 139.29557.14 FURNITURE 2018 TOTAL ADDITIONS TOTAL 696.43 3,901.79 3,203.57 7,105.36 11,230.36 1,544.64 308.93 2,288.93 1,235.71 3,215.71 18,550.00 1,815.00 7,319.64 37,500.00 4,375.00 4,375.00 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2019 TOTAL ADDITIONS TOTAL 6/1/2019 6/1/2019 6/1/2019 SL SL SL 5 7 5 991.67 11,900.00 2,800.00 991.67 326.67 326.67 33,125.00 10,908.33 2,473.33 46,506.66 57,737.02 52,200.00 5,693.34 5,693.34 13,012.98 70,750.00 1,815.00 2,288.93 8,909.05
