This article will help to understand about reporting depreciation and generating Form 4562 in Lacerte.
Form 4562 will only generate if one of the following applies:
- Depreciation has been taken for property that was placed in service during the current tax year.
- A section 179 expense deduction is claimed, which may include a carryover from a previous year (fiduciary returns can't claim section 179).
- There's current depreciation on any vehicle or other listed property (regardless of when it was placed in service).
- Depreciation is deducted for any vehicle reported on a form other than Schedule C (Form 1040).
- There's any depreciation on a corporate income tax return (other than Form 1120S).
- There's amortization of costs that begins during the current tax year.
The following steps will force Form 4562 globally for all client files (for all modules):
- Go to the Settings tab > Options.
- Select the Tax Return tab.
- Scroll down to the Federal Tax Options section.
- Select Force from the Form 4562 option.
The following steps will force Form 4562 on specific client files:
- Go to the Depreciation screen (Partnership, Screen 14; Corporate, Screen 21; S Corporate, Screen 16; Individual, Screen 22; or Fiduciary, Screen 27).
- Select the Misc/Short Year button (in the individual module this is labeled Misc./Sec. 179 [O]) under the Depreciation section.
- Scroll down to the Form 4562 section.
- Enter a 2 in Form 4562 options: 1=when applicable, 2=force.
Vehicles with methods 30, 31, 45, 46, 55, and 56 are treated as listed property with passenger vehicle limitations applied. Assets with methods 43 or 44 are treated as listed property without limitations.
Additional information for vehicles
To treat an asset with any other method as a vehicle or listed property, select the following boxes found in the Automobiles and Other Listed Property section on the Depreciation screen (Partnership, Screen 14; Corporate, Screen 21; S Corporate, Screen 16; Individual, Screen 22; or Fiduciary, Screen 27).
- Listed property
- Sport utility vehicle over 6000 pounds