Business Deductions

Claiming Depreciation on Schedule C

Schedule C Filers

  • Complete Form 4562.
  • Enter the depreciation deduction on Schedule C, Line 13, Depreciation and section 179 expense deduction (not included in Part III).
  • Attach Schedule C and Form 4562 to your Form 1040.

When You Must File Form 4562

Filing Form 4562 with your return is not always required. However, you must file Form 4562 if any one of the following applies:

  • You're claiming first-year expensing (Section 179).
  • You're claiming a first-year expensing carryover.
  • You're depreciating listed property, regardless of the year it was placed in service. In other words, you always file Form 4562 when depreciating listed property.
  • You're depreciating property that was placed in service for the first time. In any year you place depreciable property in service for the first time, you must file Form 4562.

Property for Which You Already Claimed Depreciation

For property that you already claimed depreciation in a prior year that was listed on Form 4562, you do not have to list that same property again on Form 4562 in any future year. However, for property classified as listed property, you must file Form 4562 regardless of when it was first placed in service.