Summary of Changes

Tax Forms & Publications

Work Request Notification
Title: Form 4562, Depreciation and Amortization (Including Information on Listed Property)
Tax Year: 2010

Processing Year: 2011

Route to:

Approved:

Section Chief:
Reviewer:
Review Chief:
Branch Chief:

Tuawana Pinkston

Doris E. Williams
Johnny Cervantes
Cynthia Ozkaya

Senior Technical Advisor: Curtis Freeman
Initiator (Tax Law Specialist): Emile

Date:

Tuawana Pinkston

Digitally signed by Tuawana Pinkston
DN: cn=Tuawana Pinkston, o=IRS, ou=SE:CAR:MP:
T:T:R, [email protected], c=US
Date: 2010.10.15 07:57:53 -04'00'

10/15/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.26 12:15:19 -04'00'

10/26/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I have reviewed this document
Date: 2010.10.26 12:15:29 -04'00'

10/26/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, [email protected], c=US
Reason: I am approving this document
Date: 2010.10.26 12:15:36 -04'00'

10/26/10

2010.10.26 17:59:14
-04'00'

10/26/10

Curtis Freeman

R. Beausejour

The information in this document can be used to develop any necessary Work Requests.
This notification is for changes due to:
✔ Legislation or Chief Counsel guidance: Public Law (P.L.) 111-240, Title II, sections 2021(a) and 2043

A Program change initiated by:
The major changes are as follows:
This is the 3rd WRN for the 2010 Form 4562. This WRN supersedes the 2nd WRN for the 2010 Form 4562 from April 23, 2010.
1. Because the amounts on lines 1 and 3 are even more likely to differ from the pre-printed amounts, we are removing the
pre-printed amounts. This should have little or no impact since all systems have already had these amounts set as entry spaces
rather than being hard-coded because there have been minor exceptions to the pre-printed amounts for years. The pre-printed
amounts still may be left in as defaults, however, to avoid processing changes. The amounts will be listed in the instructions and
a circulation of the instructions will be issued.
2. Cellular telephones are no longer considered listed property, so we deleted those words on page 2.
3. We revised the text in line 1 to conform to the removal of the pre-printed amount. The maximum amount that can be entered
on this line is $500,000. (P.L. 111-240, Title II, section 2021(a)(1)(B))
4. No text revision was needed on line 3. The maximum amount that can be entered is $2,000,000. (section 2021(a)(2)(B))
5. At the top of page 2, in the parenthetical that appears in the section identified as "Part V Listed Property," the phrase "cellular
telephones, " is deleted. (P.L. 111-240, Title II, section 2043)
6. The provision related to 50% bonus depreciation does not require any changes to the form as existing lines will be able to
handle the new provision as well.
We do not expect that the passage of an extender bill will require an additional WRN for the 2010 Form 4562 at this time. We
will post this as an early release in the next few weeks and will expect that revision to go final.

We may need to make further changes that would require a work request.
✔ We do not anticipate the need for any further changes that would require a Work Request.

If you have any questions, please contact:
Name: Emile R. Beausejour

Name: Doris E. Williams

Title:

Title:

Tax Law Specialist

Tax Law Specialist (Reviewer)

Symbols: SE:W:CAR:MP:T:B:C

Symbols: SE:W:CAR:MP:T:B:R

Phone: (202) 622-8003

Phone: (202) 283-0413

Email: [email protected]

Email: [email protected]

Room: 6141-01 Main IR

Room: NCFB C6-431

Version A, Cycle 1

Form

4562

Depreciation and Amortization

Department of the Treasury
Internal Revenue Service (99)

1
2
3
4
5

separate instructions.

▶ Attach

Attachment
Sequence No. 67

to your tax return.

Business or activity to which this form relates

Identifying number

Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.

Maximum amount. See the instructions for a higher limit for certain businesses . . .
Total cost of section 179 property placed in service (see instructions) . . . . . .
Threshold cost of section 179 property before reduction in limitation (see instructions) .
Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . .
Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If
separately, see instructions . . . . . . . . . . . . . . . . . . . .

6

2010

(Including Information on Listed Property)
▶ See

Name(s) shown on return

Part I

OMB No. 1545-0172

(a) Description of property

(b) Cost (business use only)

. . .
. . .
. . .
. . .
married
. . .

(see instructions)
. .
. .
. .
. .
filing
. .

$800,000

5

(c) Elected cost

7 Listed property. Enter the amount from line 29 . . . . . . . . .
7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7
. . . . . .
9 Tentative deduction. Enter the smaller of line 5 or line 8
. . . . . . . . . . . . . . .
10 Carryover of disallowed deduction from line 13 of your 2009 Form 4562 . . . . . . . . . . .
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions)
12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . .
13 Carryover of disallowed deduction to 2011. Add lines 9 and 10, less line 12 ▶
13
Note: Do not use Part II or Part III below for listed property. Instead, use Part V.

Part II

$250,000

1
2
3
4

DRAFT AS OF
May 4, 2010

8
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10
11
12

Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.)

14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . .
15 Property subject to section 168(f)(1) election .
16 Other depreciation (including ACRS) . . .

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Part III MACRS Depreciation (Do not include listed property.) (See instructions.)

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Section A
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17 MACRS deductions for assets placed in service in tax years beginning before 2010 . . . . . . .
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . ▶
Section B—Assets Placed in Service During 2010 Tax Year Using the General Depreciation System
(a) Classification of property

19a
b
c
d
e
f
g
h
i

20a
b
c

(b) Month and year
placed in
service

(c) Basis for depreciation
(business/investment use
only—see instructions)

(d) Recovery
period

(e) Convention

(f) Method

(g) Depreciation deduction

3-year property
5-year property
7-year property
10-year property
15-year property
20-year property
25-year property
25 yrs.
S/L
Residential rental
27.5 yrs.
MM
S/L
property
27.5 yrs.
MM
S/L
Nonresidential real
39 yrs.
MM
S/L
property
MM
S/L
Section C—Assets Placed in Service During 2010 Tax Year Using the Alternative Depreciation System
S/L
Class life
12 yrs.
S/L
12-year
40 yrs.
MM
S/L
40-year

Part IV Summary (See instructions.)

21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . .
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here
and on the appropriate lines of your return. Partnerships and S corporations—see instructions

23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs
. . . . . . .
For Paperwork Reduction Act Notice, see separate instructions.

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Cat. No. 12906N

Form 4562 (2010)

Version A, Cycle 1
Page 2
Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and
property used for entertainment, recreation, or amusement.)

Form 4562 (2010)

Part V

Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a,
24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section A—Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)
24a Do you have evidence to support the business/investment use claimed?
24b If “Yes,” is the evidence written?
Yes
No
Yes
(c)
(a)
(b)
Business/
(d)
Type of property (list Date placed
investment use Cost or other basis
vehicles first)
in service
percentage

(e)
Basis for depreciation
(business/investment
use only)

(f)
Recovery
period

(g)
Method/
Convention

(h)
Depreciation
deduction

No

(i)
Elected section 179
cost

25 Special depreciation allowance for qualified listed property placed in service during
the tax year and used more than 50% in a qualified business use (see instructions) .

25
26 Property used more than 50% in a qualified business use:
%
%
%
27 Property used 50% or less in a qualified business use:
S/L –
%
S/L –
%
S/L –
%
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 .
28
29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . .
29
Section B—Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other “more than 5% owner,” or related person. If you provided vehicles
to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.

DRAFT AS OF
May 4, 2010
(a)
Vehicle 1

30 Total business/investment miles driven during

(b)
Vehicle 2

(c)
Vehicle 3

(d)
Vehicle 4

(e)
Vehicle 5

(f)
Vehicle 6

the year (do not include commuting miles) .

31 Total commuting miles driven during the year
32 Total other personal (noncommuting) miles
driven .

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33 Total miles driven during the year. Add lines
30 through 32

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34 Was the vehicle available for personal use
during off-duty hours? .

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Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

.

35 Was the vehicle used primarily by a more
than 5% owner or related person? .

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36 Is another vehicle available for personal use?
Section C—Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not
more than 5% owners or related persons (see instructions).
No
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes
your employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners .

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39 Do you treat all use of vehicles by employees as personal use?
. . . . . . . . . . . . . . . .
40 Do you provide more than five vehicles to your employees, obtain information from your employees about the
use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . .
41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.)

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Note: If your answer to 37, 38, 39, 40, or 41 is “Yes,” do not complete Section B for the covered vehicles.

Part VI Amortization
(a)
Description of costs

(b)
Date amortization
begins

(c)
Amortizable amount

(e)
Amortization
period or
percentage

(d)
Code section

(f)
Amortization for this year

42 Amortization of costs that begins during your 2010 tax year (see instructions):

43 Amortization of costs that began before your 2010 tax year . . . . . .
44 Total. Add amounts in column (f). See the instructions for where to report .

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Form 4562 (2010)