Form 4562 - Schedule F Depreciation and Amortization

Form 4562 - Schedule F Depreciation and Amortization

Form 4562, titled "Depreciation and Amortization," is used by taxpayers to claim deductions for depreciation and amortization on business or investment property. It is also used to make the Section 179 election to expense certain property and to report information on the business use of automobiles and other listed property. Schedule F, on the other hand, is used to report profit or loss from farming activities. While Schedule F does not directly handle depreciation, it may reference Form 4562 for reporting depreciation deductions related to farming equipment or property.

Purpose of Form 4562

• Claim deductions for depreciation and amortization.
• Make the Section 179 election to expense certain property.
• Provide information on the business/investment use of automobiles and other listed property.

When to Use Form 4562 with Schedule F

Although Schedule F is primarily for reporting farm income or loss, if you own farm equipment or property that qualifies for depreciation, you must use Form 4562 to claim those deductions. The instructions for Schedule F (Form 1040) indicate that Form 4562 should be used to claim depreciation, including special deductions, related to farming activities.

Key Instructions for Form 4562

• General Depreciation System (GDS): Uses the 200% declining balance method switching to straight-line, with a half-year convention.
• Recovery Periods: Common recovery periods include 3, 5, 7, and 10 years, with specific percentages applied each year.
• Amortization: For costs amortized beginning in the tax year, Form 4562 must be filed. For costs amortized before the tax year, report directly on the "Other Deductions" line of your return if no other reason exists to file Form 4562.
• Section 179 Election: You may elect to expense certain property in the year it is placed in service. A separate Form 4562 must be filed for each business or activity, with a summary form for total amounts.

Important Notes

• Do not use Form 4562 to claim the deduction for energy-efficient commercial buildings under Section 179D. Use Form 7205 instead.
• For vehicles reported on forms other than Schedule C (Form 1040), depreciation must be reported on Form 4562.
• If you are reporting amortization of costs that began before your tax year and are not required to file Form 4562 for any other reason, report directly on your return.

How to Add Form 4562 in OLT Software

To add Form 4562 in OLT (Online Taxes) software:

1. From within your tax return (Online), click on Federal in the left menu.
2. Under the income section, click on "Show more" near Business Income or Loss or Rental, Royalty, Partnership, S Corp, Trust or Farm Income or Losses.
3. Click on "Add or Edit" next to Depreciation and Amortization - Form 4562.
4. Follow the on-screen instructions.

Source:

Form 4562 - Depreciation and Amortization (2025)

Schedule F - Profit or Loss From Farming (2025)

Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.