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 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019 Asset Office Furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 08/17/2019 Not considered a luxury automobile. During 2019. Karane was very successful and had no 6179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020 Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 80.000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 Used 100% for business purposes Karane generated taxable income in 2020 of $1.732,500 for purposes of computing the $179 expense limitation (Use MACRS T Tabi Thole, abe 4. Table 5. ond (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) e. Complete Part 1 of Form 4562 for pari (b) (use the most current form available). Please right click on the attached Adobe document and select open in new window. Then, download th the appropriate fields. Save your completed Tax Form to your computer and then upload it here by click regardless of year on tax form. 4562 OMB No 1545012 Form Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.lrs.gov/ForMS 62 for instructions and the latest information Bioactivity to which relates 2019 Det of The 1993 Nashou Attachment Segance No. 179 Identifying number Parti Election To Expense Certain Property Under Section 179 Form 4562 OMB No 1545-0172 Depreciation and Amortization (Including Information on Usted Property) Attach to your tax return. Go to www.lrs.gov/Form1562 for instructions and the intest Information Busion or activity to which this form relate 2019 Department of the They We are 99 Na shown on rem Attachment Segur No. 179 Identifying number Partl 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 less, enter-O- If married fling separately, see instructions 6 Description of property b) Costiness use only 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 2018 Form 4562 10 11 Business income limitation Enter the smaller of business income inot 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 Il or Part Ill 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 168/1/1) election 15 16 Other depreciation (including ACRS) 16 Part III MACRS Depreciation (Don't include listed property. See Instructions) endir arte Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See Instructions.) 14 Special depreciation Mlowance for qualified property (other than listed property placed in service during the tax year. See Instructions 14 15 Property subject to section 1680X1) 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 Rsset accounts, check here Section 8-Assets Placed in Service During 2019 Tax Year Using the General Depreciation System Monit and your Baltor Clation of property plodin bawat Recovery le Convention period Method (a) Depreciation deductions only rector 19a 3-year property b5 year property C 7-year property d 10-year property . 15-year property f 20-year property 9 25-year property 25 yma S/L h Residential rental MM SIL property 27 5 MM S/L i Nonresidential real MM S/L property MM S/L Section C-Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year 12 SAL 030year 90 yrs MM S/L d 40-year 40. MM 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 (al and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations-so 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. 12900N For 4562 2010 275 ye 39 SVL Pap 2 cost Form 4962 (2019) 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.) 24a Do you have evidence to support the business/investment use claimed? Yes No 24b "Yes," the evidence written? Yes No 14 a) Busine (d) ph Rasis for depreciation Method Recovery Depreciation Elected action 179 Type of property Date placed Cost or other basin cousinsvestment where first in service period Convention deduction percentage use only 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: 96 96 96 27 Property used 50% or less in a qualified business use: S/L S/L 9 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column 0. 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 b) id) in 30 Total business/investment miles driven during Vehicle Vehicle 2 Vehicle 3 Vehicle 4 Vehicles Vehicle & 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 Yes No No Yes No Yes No Yes No Yes Na Yes Pap 2 cost Form 4962 (2019) 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.) 24a Do you have evidence to support the business/investment use claimed? Yes No 24b "Yes," the evidence written? Yes No 14 a) Busine (d) ph Rasis for depreciation Method Recovery Depreciation Elected action 179 Type of property Date placed Cost or other basin cousinsvestment where first in service period Convention deduction percentage use only 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: 96 96 96 27 Property used 50% or less in a qualified business use: S/L S/L 9 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column 0. 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 b) id) in 30 Total business/investment miles driven during Vehicle Vehicle 2 Vehicle 3 Vehicle 4 Vehicles Vehicle & 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 Yes No No Yes No Yes No Yes No Yes Na Yes werkere lol 30 Total business Investment miles driven during Voice1 Vehicle 2 Voices Voice 4 whes Voice 6 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 Yes No Yes No Yes No Yes No Yes No Yes No use during off-duty hours? 35 Was the vehicle used primarily by a more DO DO 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 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 bi Date anorton c) d Amortization Description of costs begins Amortizable amount Code section period or Amortization for this year percentage 42 Amortization of costs that begins during your 2019 tax year (see instructions): 43 Amortization of costs that began before your 2019 tax year 44 Total. Add amounts in column . See the instructions for where to report 43 44 Form 4562 (2019) O DE a ble 1 MACRS Half-Year Convention -ar1 ar 3 ar 4 ar 5 ar 6 ar 7 ar 8 ar 9 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 ar 10 ar 12 ar 13 ar 14 ar 15 ar 16 ar 17 ar 18 ar 19 4.461 4.462 4.461 ar 21 2.231 Por property placed in service during the first quarts 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 8.74 Year 7 8.75 Year 8 1.09 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 Years 11:37 8.87 Year 6 4.26 8.87 Year 7 3.87 Year 8 3.34 TABLE MACRS Mid-Quarter Conventions For property placed in service during the third quarter Depreciation Rate for Recovery Period 6-Year 7-Year Year 1 15.00% 10.71 Year? 34.00 23.31 Year 3 20.40 18.22 Year 4 12:24 13.02 Year 6 9.30 Year 6 17:06 8.85 Year 7 8.86 Year 8 TABLER SORSY 5-Year 25.00% 30.00 18.00 11.37 11.37 4.26 7-Year 17.85% 23.47 16.76 11.97 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 8.87 8.87 8.87 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third qe Depreciation Rate for Recovery Period 3-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 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth qu 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 Years 10.94 10.04 Year 6 9.58 $.13 Year S3 Year 8 64 ME O Search for anything o 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 6 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 3.485% 3.182% 2.879% 2.576% 2273% 1.970% 1667% 1.364% 1.061% 0.758% 0.453% 0.152% Year 2-9 3.636 3.636 3.636 3.636 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 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.632 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3,636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3637 3.637 Year 28 1.97 2.273 2.576 2.879 3.152 3.495 3.636 3.636 3.636 3.636 3.636 3.636 Year 29 0.152 0.455 0.758 1.061 1.364 1.667 3.632 3.636 Month 3.175 Month 12 0.1325 3.175 3.175 3.175 3.174 3.175 3175 TABLE 4 Neredential Real Property M. Month Cauation Straight Line 315 Year (for et placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month Month 3 Month 4 Meath 5 Month 6 Month 7 Meath Month 9 Year 3.042% 2.778% 2513% 2.249% 1.984% 1720% 1455% 1.190% 0926% Year 27 3.175 3.175 3.175 3.175 3.175 3.175 1.175 3.175 3.175 Year 8 3.175 3.174 3.174 30175 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 3.175 Year 11 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 19 3.125 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3474 3.175 3.174 3.175 3.174 3.125 3.174 3.175 3.174 Year 14 3.175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 Year 15 J.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Yar 16 3.175 3.174 3.175 3.174 3175 3.174 3.175 3.174 3.175 Year 17 3.174 3.173 3.174 3.175 3.194 3.175 3.174 3.175 3.174 Year 18 3.125 3.175 3174 3175 3.174 5.175 3.174 3.175 Year 19 3.174 3.175 3 174 3.175 3.174 3.173 3.174 3.175 Year 20 3.174 3:175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Yearl 3.174 3.175 3.174 3.113 3,174 13.175 3.174 3.175 3174 Year 22 3.175 3.174 3.175 3.174 3 175 3.14 3:175 3.174 3.173 Year 13 3.174 3.173 3.174 3.175 9114 3.173 3.174 3.113 3.174 Year 24 375 3.174 3.175 3174 3.175 3.174 3.175 3:174 3175 Year 26 3.174 3.175 3.174 3:175 3.174 3.175 3.174 3.175 3.174 Year 26 3:173 3.174 3.125 3.174 3.175 3.114 3.175 3.174 3.175 Year 19 3.174 3.173 3.174 3.175 3.174 3.13 3124 3.125 Year 28 3.175 3.134 3124 3.175 3.174 3133 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.194 3.175 3.114 3.373 3.14 3.115 Year 30 3.174 3.175 3.174 3.175 3.174 3.175 311 3.175 3.174 3.113 Year 31 3114 3.179 3.174 3173 3274 3115 3114 3.175 3174 Year33 1.720 1984 2249 2313 2778 3,042 3175 Year 33 3.174 3.175 0.132 0.39 0.661 3174 Mouth 10 0.661% 3.175 3:175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.135 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.114 0926 0.397% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 3.174 3.195 3.174 3.175 3:174 3.175 1190 3.174 3.175 3174 3.175 74 3.175 3.174 3175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1:453 TABLE 6 Neredential Real Property Mid Manth Convention Straight line 39 Yeart (for its placed in service on er after May 13, 1993) Month Property Placed in Service Month 1 Meath Month 3 Month 4 Month 5 Month Month 7 Months Month Year 1 2461% 2.247% 2033% 1.819) 1.605% 1.391% 1.177% 0963% 0.749% Year 2-39 2.564 2564 2.564 2564 2564 2564 2564 2.564 2.564 Year 10 0.107 0,321 0.535 0.749 0.963 1177 1391 1605 1.819 Month 10 0.535% 2564 2.033 Moot 1 0.321% 2.564 2.247 Month 12 0.107% 2.564 2461 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year Year Placed in Service 2019 2018 10.1007 10,000+ 16,100 16,000 9,700 2,600 5,760 5.760 2020* 10.100** 16,100 9,700 5.760 2 3 4 and after 2017 3, 160* 5,100 3,050 1,875 *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the same lir **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k) (2) (F1). 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 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019 Asset Office Furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 08/17/2019 Not considered a luxury automobile. During 2019. Karane was very successful and had no 6179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020 Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 80.000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 Used 100% for business purposes Karane generated taxable income in 2020 of $1.732,500 for purposes of computing the $179 expense limitation (Use MACRS T Tabi Thole, abe 4. Table 5. ond (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) e. Complete Part 1 of Form 4562 for pari (b) (use the most current form available). Please right click on the attached Adobe document and select open in new window. Then, download th the appropriate fields. Save your completed Tax Form to your computer and then upload it here by click regardless of year on tax form. 4562 OMB No 1545012 Form Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.lrs.gov/ForMS 62 for instructions and the latest information Bioactivity to which relates 2019 Det of The 1993 Nashou Attachment Segance No. 179 Identifying number Parti Election To Expense Certain Property Under Section 179 Form 4562 OMB No 1545-0172 Depreciation and Amortization (Including Information on Usted Property) Attach to your tax return. Go to www.lrs.gov/Form1562 for instructions and the intest Information Busion or activity to which this form relate 2019 Department of the They We are 99 Na shown on rem Attachment Segur No. 179 Identifying number Partl 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 less, enter-O- If married fling separately, see instructions 6 Description of property b) Costiness use only 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 2018 Form 4562 10 11 Business income limitation Enter the smaller of business income inot 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 Il or Part Ill 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 168/1/1) election 15 16 Other depreciation (including ACRS) 16 Part III MACRS Depreciation (Don't include listed property. See Instructions) endir arte Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See Instructions.) 14 Special depreciation Mlowance for qualified property (other than listed property placed in service during the tax year. See Instructions 14 15 Property subject to section 1680X1) 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 Rsset accounts, check here Section 8-Assets Placed in Service During 2019 Tax Year Using the General Depreciation System Monit and your Baltor Clation of property plodin bawat Recovery le Convention period Method (a) Depreciation deductions only rector 19a 3-year property b5 year property C 7-year property d 10-year property . 15-year property f 20-year property 9 25-year property 25 yma S/L h Residential rental MM SIL property 27 5 MM S/L i Nonresidential real MM S/L property MM S/L Section C-Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year 12 SAL 030year 90 yrs MM S/L d 40-year 40. MM 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 (al and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations-so 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. 12900N For 4562 2010 275 ye 39 SVL Pap 2 cost Form 4962 (2019) 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.) 24a Do you have evidence to support the business/investment use claimed? Yes No 24b "Yes," the evidence written? Yes No 14 a) Busine (d) ph Rasis for depreciation Method Recovery Depreciation Elected action 179 Type of property Date placed Cost or other basin cousinsvestment where first in service period Convention deduction percentage use only 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: 96 96 96 27 Property used 50% or less in a qualified business use: S/L S/L 9 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column 0. 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 b) id) in 30 Total business/investment miles driven during Vehicle Vehicle 2 Vehicle 3 Vehicle 4 Vehicles Vehicle & 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 Yes No No Yes No Yes No Yes No Yes Na Yes Pap 2 cost Form 4962 (2019) 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.) 24a Do you have evidence to support the business/investment use claimed? Yes No 24b "Yes," the evidence written? Yes No 14 a) Busine (d) ph Rasis for depreciation Method Recovery Depreciation Elected action 179 Type of property Date placed Cost or other basin cousinsvestment where first in service period Convention deduction percentage use only 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: 96 96 96 27 Property used 50% or less in a qualified business use: S/L S/L 9 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 28 29 Add amounts in column 0. 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 b) id) in 30 Total business/investment miles driven during Vehicle Vehicle 2 Vehicle 3 Vehicle 4 Vehicles Vehicle & 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 Yes No No Yes No Yes No Yes No Yes Na Yes werkere lol 30 Total business Investment miles driven during Voice1 Vehicle 2 Voices Voice 4 whes Voice 6 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 Yes No Yes No Yes No Yes No Yes No Yes No use during off-duty hours? 35 Was the vehicle used primarily by a more DO DO 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 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 bi Date anorton c) d Amortization Description of costs begins Amortizable amount Code section period or Amortization for this year percentage 42 Amortization of costs that begins during your 2019 tax year (see instructions): 43 Amortization of costs that began before your 2019 tax year 44 Total. Add amounts in column . See the instructions for where to report 43 44 Form 4562 (2019) O DE a ble 1 MACRS Half-Year Convention -ar1 ar 3 ar 4 ar 5 ar 6 ar 7 ar 8 ar 9 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 ar 10 ar 12 ar 13 ar 14 ar 15 ar 16 ar 17 ar 18 ar 19 4.461 4.462 4.461 ar 21 2.231 Por property placed in service during the first quarts 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 8.74 Year 7 8.75 Year 8 1.09 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 Years 11:37 8.87 Year 6 4.26 8.87 Year 7 3.87 Year 8 3.34 TABLE MACRS Mid-Quarter Conventions For property placed in service during the third quarter Depreciation Rate for Recovery Period 6-Year 7-Year Year 1 15.00% 10.71 Year? 34.00 23.31 Year 3 20.40 18.22 Year 4 12:24 13.02 Year 6 9.30 Year 6 17:06 8.85 Year 7 8.86 Year 8 TABLER SORSY 5-Year 25.00% 30.00 18.00 11.37 11.37 4.26 7-Year 17.85% 23.47 16.76 11.97 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 8.87 8.87 8.87 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third qe Depreciation Rate for Recovery Period 3-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 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth qu 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 Years 10.94 10.04 Year 6 9.58 $.13 Year S3 Year 8 64 ME O Search for anything o 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 6 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 3.485% 3.182% 2.879% 2.576% 2273% 1.970% 1667% 1.364% 1.061% 0.758% 0.453% 0.152% Year 2-9 3.636 3.636 3.636 3.636 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 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.632 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3,636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3637 3.637 Year 28 1.97 2.273 2.576 2.879 3.152 3.495 3.636 3.636 3.636 3.636 3.636 3.636 Year 29 0.152 0.455 0.758 1.061 1.364 1.667 3.632 3.636 Month 3.175 Month 12 0.1325 3.175 3.175 3.175 3.174 3.175 3175 TABLE 4 Neredential Real Property M. Month Cauation Straight Line 315 Year (for et placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month Month 3 Month 4 Meath 5 Month 6 Month 7 Meath Month 9 Year 3.042% 2.778% 2513% 2.249% 1.984% 1720% 1455% 1.190% 0926% Year 27 3.175 3.175 3.175 3.175 3.175 3.175 1.175 3.175 3.175 Year 8 3.175 3.174 3.174 30175 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 3.175 Year 11 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 19 3.125 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3474 3.175 3.174 3.175 3.174 3.125 3.174 3.175 3.174 Year 14 3.175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 Year 15 J.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Yar 16 3.175 3.174 3.175 3.174 3175 3.174 3.175 3.174 3.175 Year 17 3.174 3.173 3.174 3.175 3.194 3.175 3.174 3.175 3.174 Year 18 3.125 3.175 3174 3175 3.174 5.175 3.174 3.175 Year 19 3.174 3.175 3 174 3.175 3.174 3.173 3.174 3.175 Year 20 3.174 3:175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Yearl 3.174 3.175 3.174 3.113 3,174 13.175 3.174 3.175 3174 Year 22 3.175 3.174 3.175 3.174 3 175 3.14 3:175 3.174 3.173 Year 13 3.174 3.173 3.174 3.175 9114 3.173 3.174 3.113 3.174 Year 24 375 3.174 3.175 3174 3.175 3.174 3.175 3:174 3175 Year 26 3.174 3.175 3.174 3:175 3.174 3.175 3.174 3.175 3.174 Year 26 3:173 3.174 3.125 3.174 3.175 3.114 3.175 3.174 3.175 Year 19 3.174 3.173 3.174 3.175 3.174 3.13 3124 3.125 Year 28 3.175 3.134 3124 3.175 3.174 3133 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.194 3.175 3.114 3.373 3.14 3.115 Year 30 3.174 3.175 3.174 3.175 3.174 3.175 311 3.175 3.174 3.113 Year 31 3114 3.179 3.174 3173 3274 3115 3114 3.175 3174 Year33 1.720 1984 2249 2313 2778 3,042 3175 Year 33 3.174 3.175 0.132 0.39 0.661 3174 Mouth 10 0.661% 3.175 3:175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.135 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.114 0926 0.397% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 3.174 3.195 3.174 3.175 3:174 3.175 1190 3.174 3.175 3174 3.175 74 3.175 3.174 3175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1:453 TABLE 6 Neredential Real Property Mid Manth Convention Straight line 39 Yeart (for its placed in service on er after May 13, 1993) Month Property Placed in Service Month 1 Meath Month 3 Month 4 Month 5 Month Month 7 Months Month Year 1 2461% 2.247% 2033% 1.819) 1.605% 1.391% 1.177% 0963% 0.749% Year 2-39 2.564 2564 2.564 2564 2564 2564 2564 2.564 2.564 Year 10 0.107 0,321 0.535 0.749 0.963 1177 1391 1605 1.819 Month 10 0.535% 2564 2.033 Moot 1 0.321% 2.564 2.247 Month 12 0.107% 2.564 2461 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year Year Placed in Service 2019 2018 10.1007 10,000+ 16,100 16,000 9,700 2,600 5,760 5.760 2020* 10.100** 16,100 9,700 5.760 2 3 4 and after 2017 3, 160* 5,100 3,050 1,875 *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the same lir **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k) (2) (F1)