Form 4562 AMT Depreciation Report

[ckane1]

I am rebuilding prior depreciation into Form 4562.  How do I enter Prior Depreciation amount on 4562 AMT Depreciation Report?

[PatriciaV]

Please clarify what version of TurboTax you are using and where you wish to enter the AMT depreciation information - through the interview or in forms?

[ckane1]

I am using Turbo Tax Premiere and would prefer to enter via forms but either answer would be helpful.  Thank you.

[JulieS · Accepted solution]

It is easier to do in Forms mode. 

1. Click on the white Forms icon in the upper right corner.
2. Find the appropriate Asset wks in the list on the left.
3. Scroll down to lines 10 and 12.
4. Enter your prior regular depreciation on line 10 and the AMT amount on line 12.
5. Correcting these figures will not generate any errors in the return. 

[Carl]

Generally, if you just enter the asset data, the program will "assume" an amount of prior depreciation based on the in-service date and business use percentage of the asset. It will present you that assumed amount and you'll have the opportunity to change it, if you know it's not right. Once that part is complete, the current year's depreciation will then be figured. When all done, the two 4562's (Depreciation & Amortization Report and the Alternative Minimum Tax Depreciation Report) can be reviewed for accuracy.

[ckane1]

Very helpful- thank you!

[ckane1]

Very helpful thank you!

[dcdenizen]

I have a related question.

My asset worksheets for the 27.5 yr SL/MM depreciating items show figures for prior depreciation but those are not transferred to the 4562. 

Is there a reason why this happens and can you explain why? 

I trust that since the correct figures are entered on the asset worksheet that they will carry over to next year?

[DaveF1006]

There are circumstances where a 4562 does not need to be filed. Here are the conditions;

• A section 179 deduction for the current year or a section 179 carryover from a prior year. S 
• Depreciation for property placed in service during the current year.
• Depreciation on any vehicle or other listed property, regardless of when it was placed in service. listed is property such as automobile, cell phone, computer, etc. These properties are used in business, while they can also be used for personal business.
• A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040) or Schedule C-EZ (Form 1040).
• Amortization of costs if the current year is the first year of the amortization period.
• Depreciation or amortization on any asset on a corporate income tax return (other than Form 1120S, U.S. Income Tax Return for an S Corporation) regardless of when it was placed in service.

If you didn't place any new assets in service this year, a 4562 is not required. Please read the IRS link for more information as it explains listed property and the Section 179 deduction.

@dcdenizen

[dcdenizen]

Dave,

Thanks for your detailed reply.

Unfortunately, I do not meet any of the exceptional circumstances you described each of which resulted in no need for a 4562 to be filed. 

In my case, I am once again encouraged by the fact that each of the asset worksheets where depreciation is ongoing reflects on lines 10 and 11,respectively, an accurate Prior Depreciation figure and an additional depreciation amount for 2021.

What I do not understand, however, is why solely in the case of the three assets being depreciated (since the early 2000s) on a SL/MM 27.5 yr convention do not show a prior depreciation amount on 4562.  This is noteworthy because all the other assets depreciating on the basis of different conventions do show prior depreciation figures.

I would also note that I am not subject to the AMT for 2021.

The governing question for me, therefore, is whether my 2022 4562 will reflect the prior depreciation as reflected on the 2021 asset worksheets, that is the sum of prior depreciation on line 10 and 2021 depreciation on line 12. 

If this is not the case, because there is no prior depreciation figure on my 2021 4562, then it appears that Turbo Tax will lose track of an accurate rendering of prior depreciation.

Can you definitely answer which of the two above scenarios is true? 

Thanks.

[dcdenizen]

Actually, I belatedly realize that there are TWO 4562s under my Forms. 

The first is relevant if the filer is subject to the AMT and in that case apparently prior depreciation for the Residential Property category (27.5 years)  appears blank. 

Scrolling down a few lines one finds the regular 4562 when the AMT is not applicable.  THAT version of the 4562 does include prior depreciation figures for Residential Property.