Entering Depreciable Assets using the Alternative Depreciation System (ADS)

1. Go to Screen 22, Depreciation (4562).
2. Enter the applicable asset Information.
   • Description of Property
   • Form
   • Activity name or number
   • Category
   • Date placed in service (Form 4562, Part III, Section C will only generate for assets placed in service in the current year.)
   • Cost or Basis
3. Select the applicable MACRS method in, Method.

   Recommended Depreciation Methods:
   - For 40-year property (line 20c): Select Method 85
   - For 12-year property (line 20b): Select Method 65
   - For another class life (line 20a): Select a MACRS straight-line method with equal or similar class life

4. Enter a 2 in, Special Depreciation allowance: 1 = yes, 2 = no [O].
5. Enter the applicable life of the asset in Life or class life (recovery period automatic).
   Note: To generate Form 4562 line 20b, enter a 12 in Life or class life (recovery period automatic). To generate Form 4562 Line 20c, enter a 40 in Life or class life (recovery period automatic).
6. Scroll down to the Additional Information section.
7. Check the box Alternative depreciation system (ADS).

Note: Listed property (assets using automobile methods, or with the Listed Property box checked) are reported on page 2 of Form 4562, per Form 4562 Instructions, page 10.

1. Go to Screen 21, Depreciation (4562).
2. Enter the applicable asset Information.
   • Description of Property
   • Form
   • Activity name or number
   • Category
   • Date placed in service (Form 4562, Part III, Section C will only generate for assets placed in service in the current year.)
   • Cost or Basis
3. Select the applicable MACRS method in Method.
   Recommended Depreciation Methods:
   - For 40-year property (line 20c): Select Method 85
   - For 12-year property (line 20b): Select Method 65
   - For another class life (line 20a): Select a MACRS straight-line method with equal or similar class life
4. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
5. Enter the applicable life of the asset in Life or class life (recovery period automatic).
   Note: To generate Form 4562 line 20b, enter a 12 in Life or class life (recovery period automatic). To generate Form 4562 Line 20c, enter a 40 in Life or class life (recovery period automatic).
6. Scroll down to the Additional Information section.
7. Check the box Alternative depreciation system (ADS).

Note: Listed property (assets using automobile methods, or with the Listed Property box checked) are reported on page 2 of Form 4562, per Form 4562 Instructions, page 10.

1. Go to Screen 16, Depreciation (4562).
2. Enter the applicable asset Information.
   • Description of Property
   • Form
   • Activity name or number
   • Category
   • Date placed in service (Form 4562, Part III, Section C will only generate for assets placed in service in the current year.)
   • Cost or Basis
3. Select the applicable MACRS method in Method.
   Recommended Depreciation Methods:
   - For 40-year property (line 20c): Select Method 85
   - For 12-year property (line 20b): Select Method 65
   - For another class life (line 20a): Select a MACRS straight-line method with equal or similar class life
4. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
5. Enter the applicable life of the asset in Life or class life (recovery period automatic).
   Note: To generate Form 4562 line 20b, enter a 12 in Life or class life (recovery period automatic). To generate Form 4562 Line 20c, enter a 40 in Life or class life (recovery period automatic).
6. Scroll down to the Additional Information section.
7. Check the box, Alternative depreciation system (ADS).

Note: Listed property (assets using automobile methods, or with the Listed Property box checked) are reported on page 2 of Form 4562, per Form 4562 Instructions, page 10.

1. Go to Screen 14, Depreciation (4562).
2. Enter the applicable asset Information.
   • Description of Property
   • Form
   • Activity name or number
   • Category
   • Date placed in service (Form 4562, Part III, Section C will only generate for assets placed in service in the current year.)
   • Cost or Basis
3. Select the applicable MACRS method in Method.
   Recommended Depreciation Methods:
   - For 40-year property (line 20c): Select Method 85
   - For 12-year property (line 20b): Select Method 65
   - For another class life (line 20a): Select a MACRS straight-line method with equal or similar class life
4. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O]
5. Enter the applicable life of the asset in Life or class life (recovery period automatic)
   Note: To generate Form 4562 line 20b, enter a 12 in Life or class life (recovery period automatic). To generate Form 4562 Line 20c, enter a 40 in Life or class life (recovery period automatic).
6. Scroll down to the Additional Information section.
7. Check the box Alternative depreciation system (ADS).

Note: Listed property (assets using automobile methods, or with the Listed Property box checked) are reported on page 2 of Form 4562, per Form 4562 Instructions, page 10.

1. Go to Screen 27, Depreciation (4562).
2. Enter the applicable asset Information.
   • Description of Property
   • Form
   • Activity name or number
   • Category
   • Date placed in service (Form 4562, Part III, Section C will only generate for assets placed in service in the current year.)
   • Cost or Basis
3. Select the applicable MACRS method in Method.
   Recommended Depreciation Methods:
   - For 40-year property (line 20c): Select Method 85
   - For 12-year property (line 20b): Select Method 65
   - For another class life (line 20a): Select a MACRS straight-line method with equal or similar class life
4. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
5. Enter the applicable life of the asset in Life or class life (recovery period automatic).
   Note: To generate Form 4562 line 20b, enter a 12 in Life or class life (recovery period automatic). To generate Form 4562 Line 20c, enter a 40 in Life or class life (recovery period automatic).
6. Scroll down to the Additional Information section.
7. Check the box Alternative depreciation system (ADS).

Note: Listed property (assets using automobile methods, or with the Listed Property box checked) are reported on page 2 of Form 4562, per Form 4562 Instructions, page 10.