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Report Definition Fields Unique to the Form 4562

Form 4562 - Depreciation and Amortization Window

Running Tax Reports in Batch Reports

Form 4562: Depreciation and Amortization

Purpose

This option prints an IRS Form 4562 that reports depreciation and amortization expense in a format acceptable to the IRS. You can file the printed form with your federal income tax returns. Where appropriate, the report lists assets in the order required by the form, using supplemental schedules.

Form 4562 Availability

Sage Fixed Assets supports a fileable Form 4562 for two tax years: the current tax year Form 4562 and the immediate prior year tax form 4562. For example, in the Sage Fixed Assets 2024.0 release, the 2023 Form 4562 is the current year form and the 2022 Form 4562 is the immediate prior year form.

The year printed on the Form 4562 depends on the version of the program installed on your computer. To have access to the correct current and prior tax year Form 4562, make sure your software is up to date. The form printed on the Form 4562 depends on the version of the program installed on your computer and the Run report for fiscal year beginningentered in the report definition Date field.

If you see NOT A FILEABLE FORM printed across your Form 4562 it means that you have entered a fiscal year begin date outside the range of the valid form years for the installed release.

Note: The Sage Fixed Assets Midyear 20XX.0 releases (e.g. 2024.0) have a draft version of the current year Form 4562 that is not yet final. While draft changes are rare, updates could occur if the tax law changes. The Tax Update 20XX.1 releases (e.g. 2024.1) have the final IRS version of the current year Form 4562.

Example #1: Quick Company has Sage Fixed Assets version 2024.0 installed and wants to run and file the 2023 Form 4562 before Tax Update version 2024.1 is released. There were no tax law changes by the end of 2023. Quick Company runs Form 4562 by entering a fiscal year begin date of January 2023 in the Date field of the report definition dialog. They file Form 4562 and tax return at their earliest convenience.

Example #2: BLTN, Inc. still needs to file the prior year tax return and wants to file the current year return immediately to catch up with all filings. They will be able to produce a fileable Form 4562 2022 for the immediate prior year and a current year fileable Form 4562 for 2023 in either Sage Fixed Assets version 2024.0 or version 2024.1.

Example #3: Cautious Enterprises wants to file their tax return as soon as possible; however, they have read that some business tax law changes may be on the way that could affect depreciation before year end. Though nothing is certain, they wait to install Sage Fixed Assets Tax Update 2024.1 to have the peace of mind knowing that they are using the final current year Form 4562, even if no changes were made to the draft form.

  • Ensure that you calculate tax book depreciation for all the assets you intend to include in Form 4562, taking into account the fiscal year on which you are reporting.

  • Utilize a MACRS depreciation method for MACRS property to have the system automatically allocate it under Part III, MACRS Depreciation. If you opt for a non-MACRS method such as the declining balance (DB) method, the system will categorize it under Part II, Other Depreciation.

  • Apply the RH or RM depreciation method to a remaining value over remaining life MACRS asset to have it display in Part III. Method RV displays in Part II.

  • Use depreciation method AD, RH, or RM for MACRS ADS (Alternative Depreciation System) property to have the property correctly display in Part III, Section C, Assets Placed in Service During the (Current) Tax Year Using the Alternative Depreciation System.

  • Record Listed Property by using property type A (autos), T (light trucks and vans), Q (listed personal property), or S (listed real property). This tells the system to enter it on page 2, Part V, Listed Property.

  • Use Property Type Z for all intangible assets such as Section 197 software and organization costs. The system enters it on page 2, Part VI.