Form 4562 Depreciation and Amortization 2007

Summary: This example of the 2007 Form 4562 includes items as described in the text. Additionally, the following line items are completed:

  • Name(s) shown on return field contains John Stephens
  • Business or activity to which this form relates field contains Tax Preparation
  • Identifying number field contains 465-00-0001
  • Under Part I: Election to Expense Certain Tangible Property Under Section 179:
  • 2. Total cost of section 179 property in service (see instructions)field contains 3,800
  • 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
  • 6(a) Description of property field contains Computer
  • 6(b) Cost (business use only) field contains 3,200
  • 6(c) Elected cost field contains 3,200
  • 6(a) Description of property field contains File Cabinet
  • 6(b) Cost (business use only) field contains 600
  • 6(c) Elected cost field contains 600
  • 8. Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 field contains 3,800
  • 9. Tentative deduction. Enter the smaller of line 5 or line 8 field contains 3,800
  • 10. Carryover of disallowed deduction from line 13 of your 2006 Form 4562 field contains 0
  • 11. Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) field contains 27,871
  • 12. Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 field contains 3,800
  • 13. Carryover of disallowed deduction to 2008. Add line 9 and 10, less line 12 field contains 0
  • Under Part III: Modified Accelerated Cost Recovery System Depreciation: Section B--Assets Placed in Service During 2007 Tax Year Using the General Depreciation System:
  • 19c(c) 7–year property Basis for depreciation (business/investment use only-se instructions)field contains 550
  • 19c(d) 7-year property Recovery period field contains 7
  • 19c(e) 7-year property Convention field contains half-year
  • 19c(f) 7-year property Method field contains 200% declining balance
  • 19c(g) 7–year property Depreciation deductionfield contains 79
  • 19i(g) Nonresidential real property Depreciation deduction field contains 271
  • Under Part IV: Summary:
  • 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 corporations--see instructions field contains 4,150

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