Why hasnt turbo tax generated a form 4562 for depreciation?

[ColeenD3]

Unless it is the first year an asset is placed in service, you don't always get Form 4562.

Who Must File

Complete and file Form 4562 if you are claiming any of the following.

• Depreciation for property placed in service during the 2020 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), 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 2020 tax year.

[Carl]

Depreciation of what? A SCH C business asset? SCH E Rental property? SCH F farm assets?

The 4562 forms are generated every year that you have depreciation on an asset of any type. However, it's only included in your filing if:

1) It's the first year you are depreciating assets.

2) You add/remove/sell/dispose of an asset, or anything else changes that would affect the depreciation of that asset.

So if one of the above doesn't apply to you, if you elect to "save everything" as a PDF, you'll be able to access and see the 4562 in the saved PDF file.

[momof2labs]

So, are you saying I can only depreciate (4562) my rental property the first year it's put in use?  That's how I read your answer.

[AmeliesUncle]

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@momof2labs wrote:

So, are you saying I can only depreciate (4562) my rental property the first year it's put in use?  That's how I read your answer.

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The FORM is only filed the first year when an asset is "placed in service".  For all other years, you continue depreciation, but Form 4562 is not filed with the IRS.

[Carl]

In the first year of having a rental property, there are three forms clearly labeled "form 4562" in the tax return. The first one prints in portrait format and is filed with the actual tax return in that first year *only*.

The other two form 4562's print in landscape format. One is titled "Depreciation and Amortization Report" and the other is "Alternative Minimum Tax Depreciation Report".

After that first year, if there is no change to the list of assets on the landscape 4562's, then that specific form is not filed with your tax return. The depreciation taken on the property will be shown on line 18 of the SCH E form every single year the property and/or it's assets are "in service" as a rental asset.

If there is "ANY" change to 'ANY" asset then the portrait 4562 will be generated and filed with the return.

The two landscape 4562's will be in your tax return *every* *year*, no matter what. Those two landscape form 4562's are for your records and are used to keep track of the depreciation history.

[chriskitchin]

I have received a form 4562 every year since the property was first rented out (2006) until 2020 when I am going back through the return pdf and don't see it.  I don't see any option to save all or print worksheet, and Schedule E does not have any depreciation entered on line 18 (first time not included since 2006).

Nothing changed in 2020, the property continued to be rented.  This is confusing, as in 2021 the property has been sold and I am trying to get paperwork together for the 2021 return which will need to include the sale.

Thanks

[AmeliesUncle]

Did you start your tax return in January?  If so, the program had an error that did not carry over your depreciation.

https://ttlc.intuit.com/community/asset-depreciation/help/how-do-i-fix-my-rental-properties-and-roya...

[Mike9241]

did you have asset additions in 2020? the IRS does not require and Turbotax does not do a 4562 if this is the case. but there should be a depreciation report.

however, if any of the following situations occurred there should have been the form.

• 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 

[Carl]

Your total depreciation for 2020 for all assets is on line 18 of the SCH E.

With TurboTax, there can be up to three IRS Form 4562's for each rental property. One of them prints in portrait format and is generated only if there is a change in assets in the tax year. For example, adding an asset, selling an asset, removing an asset from the business for personal use, etc.

The other two 4562's print in landscape format. One is titled Depreciation and Amortization Report and this will show you a (somewhat) detailed breakdown of each asset for that specific rental property.  The other is titled Alternative Minimum Tax Depreciation Report and shows the same detail. Neither of these two landscape reports gets filed with your tax return. They're provided by the program for informational and tracking purposes only.

[chriskitchin]

Thanks! I started my return in January’21. Information was carried over from previous TurboTax return, but didn’t submit until nearer the deadline. 

The return was processed with no alerts or rejections.  

So just to confirm my understanding, I need to submit an amended return so that depreciation is included in Schedule E?  Thanks again. 

[Anonymous_]

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@chriskitchin wrote:

So just to confirm my understanding, I need to submit an amended return so that depreciation is included in Schedule E? 

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Yes, If, for whatever reason, your depreciation deduction was not included on Schedule E, you should file an amended return.

[iamartin]

God bless all of you for answering questions!  It really helps us newbies!

[Anonymous_]

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@iamartin wrote:

Just wanted to thank you for saying 4562 is for informational and tracking purposes only. 

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Just for the record, Form 4562, itself, is not informational, but is required to be filed under certain circumstances.

What is informational are the two depreciation and amortization reports that TurboTax generates. Unfortunately, the reports have "Form 4562" printed on them which has created some confusion.

[iamartin]

Thanks for the deeper explanation!