Form 4562 Depreciation and Amortization 2007

Summary: This is an example of Form 4562 (2007) with items included as described in the text. Additionally, these line items were filled out:

  • Name(s) shown on return field contains WALTER A. & JANE W. BROWN
  • Business or activity to which this form relates field contains FARMING
  • Identifying number field contains 543-00-2111
  • Under Part I: Election To Expense Certain Tangible Property Under Section 179:
  • 1. Maximum amount. See page 2 of the instructions for a higher limit for certain businesses field contains $125,000
  • 3. Threshold cost of section 179 property before reduction in limitation field contains $500,000
  • 4. Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter 0 field contains 0
  • 5. Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter 0. If married filing separately, see page 2 of the instructions field contains 125,000
  • 8. Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 field contains 22,635
  • 9. Tentative deduction. Enter the smaller of line 5 or line 8 field contains 22,635 10. Carryover of disallowed deduction from line 13 of your 2006 Form 4562 field contains 0
  • 13. Carryover of disallowed deduction to 2007 . Add lines 9 and 10, less line 12 field contains 0
  • Under Part II: Special Depreciation Allowance and Other Depreciation:
  • 14. Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see page 3 of the instructions) field contains 0
  • Under Part III: MACRS Depreciation (Do not include listed property.) (See page 4 of the instructions.):
  • 17. MACRS deductions for assets placed in service in tax years beginning before 2007field contains 2,593
  • Under Section B--Assets Placed in Service During 2007 Tax Year Using the General Depreciation System:
  • 19d. 10-year property
  • (c) Basis for depreciation (business/investment use only--see instructions) field contains 28,250
  • (d) Recovery period field contains 10
  • (e) Convention field contains HY
  • (f) Method field contains 150DB
  • (g) Depreciation deduction field contains 2,119
  • 19f. 20-year property
  • (c) Basis for depreciation (business/investment use only--see instructions) field contains 650
  • (d) Recovery period field contains 20
  • (e) Convention field contains HY
  • (f) Method field contains 150DB
  • (g) Depreciation deduction field contains 24
  • Part IV Summary:
  • 21. Listed property. Enter amount from line 28field contains 1,179
  • 22. Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. field contains 77,915

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