Form 4562 - Depreciation and Amortization (Including Information on Listed Property)

Sep 19, 2026

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Form 4562 provides the instructions and required reporting framework for claiming depreciation and amortization. It covers election under section 179 to expense certain property, and requires business or investment use information for automobiles and other listed property. The 2025 update adds new MACRS depreciation reporting lines for 50-year property, splits basis information between related lines, and adds Part V guidance for aircraft depreciation. It also explains changes to section 179 limits, special depreciation phase-down and reinstatement rules, and reinstated domestic research and experimental expense treatment.

LanguageEnglish

CategoryForms

FormatPDF

Pages24

Reading Time8 min

AccessFree to download

Future Developments

What’s New

MACRS depreciation reporting changes

Basis allocation for interest costs capitalized under section 263A

New aircraft check box in Part V

Section 179 deduction dollar limits

Special depreciation allowance phase-down and reinstatement

Qualified production property special depreciation allowance

Removal of solar or wind energy property from 5-year property

Domestic research and experimental expenditures

General Instructions Purpose of Form

Claim depreciation and amortization, section 179 election, and listed property use

Energy efficient commercial buildings limitation

2025 Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property) Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 4562 and its instructions, such as legislation enacted after this form and instructions were published, [go to](go to IRS.gov/)[ ](go to IRS.gov/)[IRS.gov/](go to IRS.gov/)[ ](go to IRS.gov/)[Form4562](Form4562.)[.](Form4562.) What’s New Changes to Form 4562. New lines 19h and 20e have been added to report MACRS depreciation during the 2025 tax year for 50-year property. Line 19h is used to report depreciation using the General Depreciation System (GDS) and line 20e is used to report depreciation using the Alternative Depreciation System (ADS) . Line 23 of Form 4562 has been divided into lines 23a and 23b to report information on the amount of the basis attributable to interest costs capitalized under section 263A(f) for costs that have been capitalized under section 263A and the basis attributable to costs capitalized under section 263A other than interest costs capitalized under section 263A(f) . See the instructions for Lines 23a and 23b, later. A new line 24c has been added to Part V of Form 4562. If you own, lease, or charter an aircraft for which you are claiming depreciation, you must check the box for all that apply. See the instructions for Line 24c, later. Section 179 deduction dollar limits. For tax years beginning in 2025, the maximum section 179 expense deduction is $2,500,000 . This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $4,000,000 . Also, the maximum section 179 expense deduction for sport utility vehicles (SUVs) placed in service in tax years beginning in 2025 is $31,300 . Phase down of the special depreciation allowance for certain qualified property acquired before January 20, 2025, and certain plants bearing fruits and nuts planted or grafted before January 20, 2025. Certain qualified property (other than property with a long production period and certain aircraft) placed in service after December 31, 2024, and before January 1, 2026, is limited to a special allowance of 40% of the depreciable basis of the property. Certain property with a long production period and certain aircraft placed in service after December 31, 2024, and before January 1, 2026, is limited to a special depreciation allowance of 60% of the depreciable basis of the property. For certain plants bearing fruits and nuts planted or grafted after December 31, 2024, and before January 20, 2025, the special depreciation allowance is also limited to 40% of the adjusted basis of the specified plants. See Certain qualified property acquired after September 27, 2017, and before January 20, 2025 , and Certain plants bearing fruits and nuts planted or grafted before January 20, 2025 , later. Special depreciation allowance for certain qualified property acquired after January 19, 2025, and certain plants bearing fruits and nuts planted or grafted after January 19, 2025. P.L. 119-21, commonly known as the One Big Beautiful Bill Act, reinstated the 100% special depreciation allowance for certain qualified property acquired and placed in service after January 19, 2025 (including long production period property and certain aircraft) and certain specified plants bearing fruits and nuts planted or grafted after January 19, 2025. However, you can elect to take a 40% special depreciation allowance (60% for long production period property and certain aircraft) for this property during first tax year ending after January 19, 2025, instead of taking the 100% special depreciation allowance. See Certain qualified property acquired after January 19, 2025 , and Certain plants bearing fruits and nuts planted or grafted after January 19, 2025 , later. Special depreciation allowance for qualified producti

FAQs

What is Form 4562 used for in 2025?

Use Form 4562 to claim depreciation and amortization deductions, make the section 179 election to expense certain property, and provide business or investment use information for automobiles and other listed property.

What changed for MACRS depreciation in the 2025 tax year?

New lines 19h and 20e were added to report MACRS depreciation during 2025 for 50-year property. Line 19h reports using the GDS and line 20e reports using the ADS.

How do section 179 deduction limits work for tax years beginning in 2025?

For tax years beginning in 2025, the maximum section 179 expense deduction is $2,500,000, reduced when the cost of section 179 property placed in service exceeds $4,000,000. For sport utility vehicles (SUVs) in tax years beginning in 2025, the maximum deduction is $31,300.

Sep 19, 2026

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