Entering Depreciable Assets using the Alternative Depreciation System (ADS)
by Intuit• Updated 4 months ago
To generate Form 4562, Part III, Section C lines 20a, 20b, or 20c:
- Go to Screen 22, Depreciation (4562).
- 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
- 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 - Enter a 2 in, Special Depreciation allowance: 1 = yes, 2 = no [O].
- 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). - Scroll down to the Additional Information section.
- 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.
- Go to Screen 21, Depreciation (4562).
- 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
- 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 - Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
- 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). - Scroll down to the Additional Information section.
- 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.
- Go to Screen 16, Depreciation (4562).
- 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
- 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 - Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
- 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). - Scroll down to the Additional Information section.
- 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.
- Go to Screen 14, Depreciation (4562).
- 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
- 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 - Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O]
- 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). - Scroll down to the Additional Information section.
- 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.
- Go to Screen 27, Depreciation (4562).
- 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
- 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 - Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
- 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). - Scroll down to the Additional Information section.
- 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.
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