Generating Form 4562 in ProConnect Tax

This article will walk you through entering depreciable assets for all return types in ProConnect Tax. It also explains how to force Form 4562 to generate if it's not required by the IRS.

Entering depreciable assets:

1. Go to the Input Return tab.
2. Open the Depreciation input.
   • For a 1040 return: on the left-side menu, select Deductions and then Depreciation.
   • For a 1041 return: on the left-side menu, select Deductions and then Depreciation.
   • For a 1120 return: on the left-side menu, select Deductions and then Depreciation.
   • For a 1120S return: on the left-side menu, select Ordinary Income and then Depreciation (4562).
   • For a 1065 return: on the left-side menu, select Ordinary Income and then Depreciation (4562).
   • For a 990 return: on the left-side menu, select Expenses and then Depreciation.
3. Fill in any applicable information in the Quick Entry grid.
   1. Description of Property
   2. Form - select the Form or Schedule this depreciation is for.
      • From the Activity Name or Number list you can control which business activity the depreciation relates to.
   3. Category
   4. Choose the appropriate Depreciation Method.
   5. Date placed in service
   6. Cost or basis
   7. Method, for information on what each method stands for, see Depreciation methods
   8. Enter any prior year depreciation/ prior special depreciation / prior section 179 (as applicable).
4. If more information is required, click the Details button to view additional input fields.
5. Repeat steps 3 and 4 for additional assets.

When is Form 4562 required?

According to Form 4562 instructions, the form is required if the taxpayer claims any of the following:

• Depreciation for property placed in service during the current tax year
• Section 179 expense deduction (may include a carryover from a previous year)
• Depreciation on any vehicle or other listed property (regardless of when it was placed in service)
• A deduction for any vehicle reported on a form other than Schedule C (1040)
• Any depreciation on a corporate income tax return (other than Form 1120S)
• Amortization of costs that begins during the current tax year

Form 4562 will only print when the form is required.

To force Form 4562 to generate when not required:

1. Go to the Input Return tab.
2. Open the Depreciation input.
   • For a 1040 return: on the left-side menu, select Deductions and then Depreciation.
   • For a 1041 return: on the left-side menu, select Deductions and then Depreciation.
   • For a 1120 return: on the left-side menu, select Deductions and then Depreciation.
   • For a 1120S return: on the left-side menu, select Ordinary Income and then Depreciation (4562).
   • For a 1065 return: on the left-side menu, select Ordinary Income and then Depreciation (4562).
   • For a 990 return: on the left-side menu, select Expenses and then Depreciation.
3. Select the blue Misc. link in the upper right corner.
4. Enter 1 in Form 4562 options: 1=yes, 2=no [Override]

Related topics:

• Generating Form 4562 with depreciation amounts using Direct Input
• Entering depreciation for new clients in ProConnect Tax
• How to expense and amortize start-up costs or organizational expenditures
• Using ProConnect Tax as a fixed asset manager
• Depreciation methods