Form 4562: Depreciation and Amortization


DEFINITION of 'Form 4562: Depreciation and Amortization'

A tax form distributed by the Internal Revenue Service (IRS) and used to claim deductions for the depreciation or amortization of a piece of property, or Section 179 expense. Individuals and businesses can claim deductions for both tangible property, such as a building, and intangible property, such as a patent, but cannot depreciate land. Section 179 property, which is actively used to conduct business, cannot include investment property, hotels or property primarily held abroad.

BREAKING DOWN 'Form 4562: Depreciation and Amortization'

A separate IRS Form 4562 has to be filed for each activity requiring the form. For example, a new form must be filled out for each depreciation or amortization deduction being claimed for different properties. The IRS does not require detailed depreciation records to be attached, but taxpayers should keep such records in order to calculate the depreciation deduction.

Employees deducting job-related vehicle expenses should use Form 2106 instead of Form 4562.

  1. Amortization

    1. The paying off of debt in regular installments over a period ...
  2. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Section 179

    An immediate expense deduction that business owners can take ...
  5. Adjusted Gross Income - AGI

    A measure of income calculated from your gross income and used ...
  6. Audit

    An unbiased examination and evaluation of the financial statements ...
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