4562-FY Justification

P.L. 110-185, the Economic Stimulus Act of 2008, which became law on February 13, 2008, provides for a special 50% depreciation allowance for property placed in service after December 31, 2007, but before January 01, 2009.  Because the 2007 Instructions for Form 4562, Depreciation and Amortization, went to print in mid-October, 2007, fiscal year taxpayers whose tax year begins in 2007 and ends in 2008 would not be able to take advantage of this new provision because it is not discussed.

New Form 4562-FY solves this problem for 2007 by revising the instructions for Lines 14 and 25 to reflect the requirements for the larger depreciation allowance.  There will be no 2008 version of the form because everything will be discussed in the 2008 version of Form 4562.  The net result is that there is no change in the burden because the number of taxpayers who file Form 4562 and Form 4562-FY for 2007 remains the same as the total number of filers of Form 4562 in 2006.