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Level 3

Should I attach a "details statement" to Form 4562 of my 1065?

when I had a CPA do my 1065, he created a 1 page attachment showing details for form 4562.

my 4562 only had a single entry on PART III  line 17 for the annual depreciation of a building but the attachment   showed the details for the  Building (ie date placed in service, cost basis, prior accumulated depreciation, current yr depr, current yr accumulated depr

is this an optional attachment?  because without it, how would the IRS track your accumulated depreciation?
1 Best answer

Accepted Solutions
Level 15

Should I attach a "details statement" to Form 4562 of my 1065?


@tuxedorose wrote:
is this an optional attachment?  because without it, how would the IRS track your accumulated depreciation?

The attachment is definitely optional and even Form 4562 does not have to be filed (for the 2019 tax year) unless you are claiming any of the following:

 

  • Depreciation for property placed in service during the 2019 tax year.

  • A section 179 expense deduction (which may include a carryover from a previous year).

  • Depreciation on any vehicle or other listed property (regardless of when it was placed in service).

  • A deduction for any vehicle reported on a form other than Schedule C (Form 1040 or 1040-SR), Profit or Loss From Business.

  • Any depreciation on a corporate income tax return (other than Form 1120-S).

  • Amortization of costs that begins during the 2019 tax year.

See https://www.irs.gov/instructions/i4562#idm139765158376400

 

 

The IRS does not necessarily keep track of accumulated depreciation; the system of federal income taxation is predicated upon self-reporting. If you happen to be audited with respect to your accumulated depreciation, you will need some sort of proof of the deductions you have taken previously.

 

Otherwise, IRS regulations state that you must reduce your cost or other basis of your property by the greater of the amount allowed as deductions in computing taxable income or the amount allowable for the years involved.

 

See Treas. Reg. §1.1016-3(a)(1)

 

 

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4 Replies
Level 15

Should I attach a "details statement" to Form 4562 of my 1065?


@tuxedorose wrote:
is this an optional attachment?  because without it, how would the IRS track your accumulated depreciation?

The attachment is definitely optional and even Form 4562 does not have to be filed (for the 2019 tax year) unless you are claiming any of the following:

 

  • Depreciation for property placed in service during the 2019 tax year.

  • A section 179 expense deduction (which may include a carryover from a previous year).

  • Depreciation on any vehicle or other listed property (regardless of when it was placed in service).

  • A deduction for any vehicle reported on a form other than Schedule C (Form 1040 or 1040-SR), Profit or Loss From Business.

  • Any depreciation on a corporate income tax return (other than Form 1120-S).

  • Amortization of costs that begins during the 2019 tax year.

See https://www.irs.gov/instructions/i4562#idm139765158376400

 

 

The IRS does not necessarily keep track of accumulated depreciation; the system of federal income taxation is predicated upon self-reporting. If you happen to be audited with respect to your accumulated depreciation, you will need some sort of proof of the deductions you have taken previously.

 

Otherwise, IRS regulations state that you must reduce your cost or other basis of your property by the greater of the amount allowed as deductions in computing taxable income or the amount allowable for the years involved.

 

See Treas. Reg. §1.1016-3(a)(1)

 

 

View solution in original post

Level 15

Should I attach a "details statement" to Form 4562 of my 1065?

1)  you cannot attach anything to an efiled return

 

2) even if you attach it to a mailed in return the data entry person will either ignore it or put it in the shredder so don't bother. 

Level 3

Should I attach a "details statement" to Form 4562 of my 1065?

I dont believe that is true. I file paper returns and have seen several instances where the IRS asks for attachments with details

Level 15

Should I attach a "details statement" to Form 4562 of my 1065?

The form 4562 is sent to the IRS in any year there is a change on that form. Explanations are not necessary at the time of filing. Speaking for the TurboTax program only, if explanations are required at the time of filing, the program will inform you of that. Otherwise, send only what is required. If additional information is needed by the IRS they will request it later. Trying to anticipate what the IRS wants is more apt to result in the same amount of delay as it would if one waited for the IRS to request it. It just depends on the human dealing with that specific return and how much attention they pay to details. Being that the IRS processes over 300 million tax returns within a 90 day period or less, it's uaually better to wait for them to ask for information.

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