Schedule C - line 13 -- Depreciation and section 179 expense deduction. Question about Form 4562 and Maryland's 500DM

[EdNay2458]

Help please! A little background first.  My tax preparer claimed the depreciation deduction for the first time in 2018 on my Schedule C line 13 and completed Form 4562 with a recovery period of 5 years.  Unfortunately he didn't claim the deduction in 2019 so now I'm amending my 2019 1040 return to claim it on Schedule C.  

First question, do I need to file form 4562 again?  Secondly, do I also need to file Maryland's form 500DM?

If so it's unclear to me specifically what values I'm to enter for the 500DM form.

Thanks for your response.

[DianeW777]

It depends.  Form 4562 is required to be filed in any year when a new asset is placed in service for business use. If you do not have any new assets in 2019, then a Form 4562 is not required to be filed with your original or amended tax return for 2019.  The deprecation amount calculated would simply continue to carry to your Schedule C each year.

Based on my review of the Maryland (MD) 500DM form, and your statement above about using a recovery period of 5 years, without the use of federal options for special bonus depreciation or section 179. If this is true then Form 500DM is not required to be used.

• MD Form 500DM Decoupling Modification and instructions 

[EdNay2458]

Thank you so much.