Common questions about depreciation Form 4562 in Lacerte

For more depreciation resources, check out our Tax topics page for Schedule C where you'll find answers to the most commonly asked questions.

Table of contents:

What's new for tax year 2025

The One Big Beautiful Bill brings many changes to Section 179 and Special Deprecation Allowance. Here are some of the key updates:

• Qualified production property placed in service after July 4, 2025, the construction of which began after January 19, 2025, may be eligible for a 100% special depreciation allowance.
• Section 179 deduction dollar limits have been increased, including the amount for SUV's.
• For certain qualified property placed in service before January 20, 2025, a phase-down of the special depreciation allowance is in place.
• Certain qualified property placed in service after January 19, 2025 may be eligible for 100% special depreciation allowance or you can elect to take 40%.
• Domestic research and experimental expenditures may be amortized over either a 60 month, or 10-year period. Different periods apply for foreign research.

For full details, review the 4562 instructions.

Instructions for entering this in Lacerte are coming soon.

Depreciate or amortize assets related to a specific form or schedule?

1. Open Screen 22, Depreciation.
2. In the Show Assets for list, select the form that the asset relates to.
3. In the Show Assets for list, select the Activity Name or Number that the asset relates to.
4. In the Asset list, select Add.
5. Enter a description of the asset in Description of Property.
6. Enter the date the asset was placed in service in Date Placed in Service (Negative Date = Various).
7. Enter the cost or basis of the asset in Cost or Basis.
8. Select the arrow beside Method (Ctrl+T), and then select a method of depreciation for the asset.
9. Complete the remaining input fields for the asset as necessary

Back to Table of Contents

How to amortize an asset/intangible

1. Open Screen 22, Depreciation (4562).
2. In the Show Assets For list, select the form that relates to the amortization expense.
3. In the Asset list, select Add.
4. In Description of Property, enter a description for the amortization expense.
5. In Activity Name or Number (Ctrl+T), enter the activity name or number of the form or schedule to which the asset relates if you have more than one form type in step 2.
6. In the Section list, select Federal Depreciation.
7. In the Federal Depreciation section, enter 8 for Amortization in Category.
8. In Date Placed in Service, enter the date in m/d/y format that the amortizable expense occurred.
9. In Cost or Basis, enter the amortizable amount.
10. In Method, enter 91 to select the Straight Line method.
11. In Life or Class Life, enter the amortizable period in years.
12. In Amortization Code Section, select the arrow to select the appropriate code section

Back to Table of Contents

Generating Form 4562 Line 16 Other Depreciation

Lacerte will automatically include amounts on Form 4562, line 16 from the Depreciation screen if depreciable assets have:

• An ACRS method selected (Methods 30-83), or
• A method 91 selected (with no Amortization code section selected).

Back to Table of Contents

To generate Form 4562, line 16 from the Depreciation screen:

1. Go to the Depreciation screen:
   • Screen 22 (Individual)
   • Screen 14 (Partnership)
   • Screen 21 (Corporate)
   • Screen 16 (S Corporate)
   • Screen 27 (Fiduciary)
   • Screen 39 (Exempt Organization)
2. Select the Asset or Add from the left navigation panel.
3. Enter the applicable information for the asset (if not already entered).
4. Select 91 = Straight Line from the Method drop down menu.
5. Scroll down to the Federal Depreciation section.
6. Locate the Regular Depreciation subsection.
7. Enter the Life of class life (recovery period automatic). (Example: Enter 15 for 15 year class life.)

Back to Table of Contents

To generate form 4562, line 16 from Direct Input screen:

Form 4562 must be generating or forced for the amounts to show on line 16. See Generating Form 4562 for Depreciation for more information.

Per the form 4562 instructions:

• ACRS property (pre-1987 rules). See Pub. 534.
• Property placed in service before 1981.
• Certain public utility property which does not meet certain normalization requirements.
• Certain property acquired from related persons.
• Property acquired in certain nonrecognition transactions.
• Certain sound recordings, movies, and videotapes.
• Property depreciated under the income forecast method. The use of the income forecast method is limited to motion picture films, videotapes, sound recordings, copyrights, books, and patents..."

Back to Table of Contents

How to Overide 4562 line 11- Business Income Limitation in the Individual Module

1. Navigate to Screen 22, Depreciation
2. Select Misc./Sec. 179 (O) on the left navigation pane.
3. Enter the desired amount in the field Taxable Income for Limitation (O)

The program will continue to generate the worksheet for Line 11 with the original calculated amounts.

Back to Table of Contents

Related topics:

• How to generate Form 4562 for depreciation in Lacerte
• Special depreciation input and elections in Lacerte
• Entering Section 1250 depreciation recapture
• Entering section 1245 depreciation recapture in Lacerte
• Reporting a sale of home with business use in Lacerte
• Using the Like-Kind Exchange Wizard in Lacerte