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Entering Depreciable Assets using the Alternative Depreciation System (ADS)

SOLVEDby Intuit10Updated 1 year ago

To generate Form 4562, Part III, Section C lines 20a, 20b, or 20c:

  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
  1. 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

  2. Enter a 2 in, Special Depreciation allowance: 1 = yes, 2 = no [O].
  3. 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).
  4. Scroll down to the Additional Information section.
  5. 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
  1. 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
  2. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
  3. 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).
  4. Scroll down to the Additional Information section.
  5. 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
  1. 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
  2. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
  3. 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).
  4. Scroll down to the Additional Information section.
  5. Check the bo, 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
  1. 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
  1. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O]
  2. 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).
  3. Scroll down to the Additional Information section.
  4. 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
  1. 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
  2. Enter a 2 in Special Depreciation allowance: 1 = yes, 2 = no [O].
  3. 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).
  4. Scroll down to the Additional Information section.
  5. 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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