Updated October 9, 2026. Quick answer: Form 4562 is the IRS form for claiming depreciation and amortization, making the section 179 election, and reporting listed property such as vehicles. The 2025 instructions tell you to file it when you claim depreciation on property placed in service during 2025, among other triggers, and they print a 27.5 year recovery period for residential rental property. This page reads the 2025 form and instructions line by line for a rental owner.
Picking the Schedule C business code for your work (2025 chart): Schedule C code for construction trades.
Picking the Schedule C business code for your work (2025 chart): Schedule C code for landscapers.
Related reading on this site: IRS Publication 527.
More IRS forms and schedules for individual filers, read line by line: Form 2106 instructions, Form 2106 standard mileage rate and who can still use Form 2106.
Related reading on this site: IRS Publication 946 and IRS Publication 463.
S corporation return (Form 1120-S) for 2025, read line by line: Form 1120-S Schedule B questions 6 to 11, Form 1120-S Schedule L and Form 1120-S Schedule M-1.
Partnership return (Form 1065) for 2025, read line by line: Form 1065 lines 24 to 31, Form 1065 Schedule L and Form 1065 Schedule M-1.
Business use of your home (Form 8829), the saver’s credit (Form 8880), clean vehicle credits (Form 8936) and amended returns (Form 1040-X), read line by line: Form 8829 lines 28 to 36, Form 8829 lines 37 to 44 and Form 8936 Parts II and V.
Sales of business property (Form 4797), passive activity losses (Form 8582) and depreciation (Form 4562) for 2025, read line by line: Form 4562 lines 14 to 20, Form 4562 lines 21 to 23 and Form 4562 Part VI.
Foreign tax credit (Form 1116) and alternative minimum tax (Form 6251) for 2025, read line by line: Form 6251 line 2l, Form 6251 lines 2m to 2t and Form 6251 line 4.
Schedule D and Schedule E (Form 1040) for 2025, read line by line: Schedule D line 19, Schedule E lines 5 to 11 and Schedule E lines 12 to 19.
Schedule C and Schedule SE (Form 1040) for 2025, read line by line: Schedule C lines 16a and 16b, Schedule C lines 20 to 22 and Schedule C lines 27a to 29.
More IRS forms and schedules, read line by line: Form 8275 instructions.
More IRS forms and schedules, read line by line: Form 3115 instructions.
The shareholder’s Schedule K-1 (Form 1120-S), boxes 13 to 19: Schedule K-1 boxes 18 and 19, Schedule K-1 box 17 codes K to O and Schedule K-1 box 17 other codes.
The shareholder’s Schedule K-1 (Form 1120-S), read box by box: Schedule K-1 box 2, Schedule K-1 box 3 and Schedule K-1 box 12.
The partner’s Schedule K-1 (Form 1065), read box by box: Schedule K-1 box 14, Schedule K-1 box 15 and Schedule K-1 box 17.
What Form 4562 is and who must file it
The IRS gives the form three jobs. It says to “Use Form 4562 to:” do the following: “Claim your deduction for depreciation and amortization,” “Make the election under section 179 to expense certain property, and” “Provide information on the business/investment use of automobiles and other listed property.”
Who must file is defined by what you are claiming, not by who you are. The instructions list the triggers this way: “Except as otherwise noted, complete and file Form 4562 if you are claiming any of the following.”
| Trigger | What the instructions list |
|---|---|
| Depreciation | “Depreciation for property placed in service during the 2025 tax year.” |
| Section 179 | “A section 179 expense deduction (which may include a carryover from a previous year).” |
| Listed property | “Depreciation on any vehicle or other listed property (regardless of when it was placed in service).” |
| Amortization | “Amortization of costs that begins during the 2025 tax year.” |
Two practical points follow from the text. First, “File a separate Form 4562 for each business or activity on your return for which Form 4562 is required.” Second, the form does not make you resubmit old assets every year: “Except for Part V (relating to listed property), the IRS does not require you to submit detailed information with your return on the depreciation of assets placed in service in previous tax years.” “However, the information needed to compute your depreciation deduction (basis, method, etc.) must be part of your permanent records.”
Rental property: what depreciation means and what the instructions say about it
For a landlord the starting definition matters: “Depreciation is the annual deduction that allows you to recover the cost or other basis of your business or investment property over a certain number of years.” “Depreciation starts when you first use the property in your business or for the production of income.” The instructions also draw a line at land: “Exception. You cannot depreciate land.” If you convert a home to a rental, the placed-in-service date is the conversion date: “If you converted property held for personal use to use in a trade or business or for the production of income, treat the property as being placed in service on the conversion date.” The conversion case is walked through on converting your home to a rental.
The instructions group rental property into classes with a printed recovery period. The following table pulls the rental-relevant ones together:
| Class | How the instructions describe it | Recovery period printed |
|---|---|---|
| Residential rental property | “Residential rental property is a building in which 80% or more of the total rent is from dwelling units.” | 27.5 years |
| Nonresidential real property | “Nonresidential real property is any real property that is neither residential rental property nor property with a class life of less than 27.5 years.” | 39 years |
| Appliances, carpets, furniture in a rental | Listed in the instructions under 5-year property: “Appliances, carpets, furniture, etc., used in a rental real estate activity.” | 5 years |
| Residential rental property under the alternative system | “The ADS recovery period for residential rental property placed in service after 2017 is 30 years.” | 30 years |
The instructions add a convention rule: “Mid-month convention. This convention applies only to residential rental property (line 19i), nonresidential real property (line 19j), and railroad gradings and tunnel bores.” The recovery table for the 27.5 year class is labeled “Recovery period: 27.5 years”, “Convention: Mid-month” and “Method: Straight line”.
The following is an illustration with made-up amounts, not an IRS example. It shows only the straight-line idea behind the 27.5 year period, not the first-year or last-year amounts that the mid-month convention changes:
| Item | Amount | Note |
|---|---|---|
| Depreciable basis of the building (land excluded) | $275,000 | Illustration |
| Recovery period for residential rental property | 27.5 years | Quoted figure |
| Straight-line amount for a full year: $275,000 divided by 27.5 | $10,000 | Computed here |
The instructions do not say which schedule a rental owner carries the result to; they name Schedule C (Form 1040) for some vehicle reporting but no rental schedule. For what happens to depreciation when a rental is sold, see depreciation recapture.
Part I: the section 179 election
Section 179 lets a taxpayer expense, rather than depreciate over time, part of the cost of qualifying property. The instructions describe the election: “You can elect to expense part or all of the cost of section 179 property (defined earlier) that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business.” For the 2025 year the dollar figures are printed in the What’s New section and again on Line 1: “For tax years beginning in 2025, the maximum section 179 expense deduction is $2,500,000.” “This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $4,000,000.”
Landlords should read two limits closely. The definition of section 179 property carves out “Property held for investment (section 212 property).” And for rented-out equipment: “However, for taxpayers other than a corporation, this election does not apply to any section 179 property you purchased and leased to others unless:” the instructions then give two exceptions, one of which is “You manufactured or produced the property; or” Whether a particular rental asset passes those tests is a facts question for the return.
The form walks the limit through five lines:
| Form line | Wording on the form |
|---|---|
| Line 1 | Maximum amount (see instructions) |
| Line 2 | Total cost of section 179 property placed in service (see instructions) |
| Line 3 | Threshold cost of section 179 property before reduction in limitation (see instructions) |
| Line 4 | “Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0-” |
| Line 5 | “Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-.” |
The following is an illustration with made-up amounts, not an IRS example, using the two limits quoted above:
| Step | Amount | Note |
|---|---|---|
| Cost of all section 179 property placed in service (line 2, input to the computed rows below) | $4,300,000 | Illustration input |
| Threshold (line 3), as printed in the instructions | $4,000,000 | Quoted figure |
| Reduction in limitation (line 4): $4,300,000 minus $4,000,000 | $300,000 | Computed here |
| Maximum amount (line 1), as printed in the instructions | $2,500,000 | Quoted figure |
| Dollar limitation (line 5): $2,500,000 minus $300,000 | $2,200,000 | Computed here |
Two more rules shape the election. On timing: “You must make the election on Form 4562 filed with either:” the original return for the year the property was placed in service, or an amended return filed within the time the instructions describe. On the interaction with other deductions: “If you elect to expense section 179 property, you must reduce the amount on which you figure your depreciation or amortization deduction (including any special depreciation allowance) by the section 179 expense deduction.”
Part II: the special depreciation allowance
Part II is where the so-called bonus depreciation goes. The instructions explain its place in the order of operations: “The allowance is an additional deduction you can take after any section 179 expense deduction and before you figure regular depreciation under MACRS.” “The special depreciation allowance applies only for the first year the property is placed in service.”
For 2025 the rate depends on when the property was acquired. The instructions say “Certain qualified property (defined below) acquired after January 19, 2025, is eligible for a 100% special depreciation allowance.” “However, you can elect to take a 40% special depreciation allowance for certain qualified property” in place of the 100% allowance in the first tax year ending after January 19, 2025.
Whether a rental asset qualifies turns on the definition: “Tangible property depreciated under MACRS with a recovery period of 20 years or less;” is the first item in the qualified property list. Comparing that text with the table above, appliances and furniture in a rental sit in a 5 year class that is within 20 years, while the 27.5 year class for the building itself is longer than 20 years. The instructions do not say in this passage which of a landlord’s assets qualify beyond that definition, and point to “See Pub. 946 for more information.”
Part III MACRS, Part V listed property, and Part VI amortization
Part III is the regular depreciation schedule. The instructions define the system: “The Modified Accelerated Cost Recovery System (MACRS) is the current method of accelerated asset depreciation required by the tax code.” “Generally, MACRS is used to depreciate any tangible property placed in service after 1986.” The basis you enter is not simply the price: “To find the basis for depreciation, multiply the cost or other basis of the property by the percentage of business/investment use.” “From that result, subtract any credits and deductions allocable to the property.”
Part V covers listed property. The instructions define it as including “Passenger automobiles weighing 6,000 pounds or less.” and warn that a vehicle claim brings the form in: “If you claim the standard mileage rate, actual vehicle expenses (including depreciation), or depreciation on other listed property, you must provide the information requested in Part V, regardless of the tax year the property was placed in service.”
Part VI is for amortization. The instructions open it with “Each year, you can deduct part of certain capital costs over a fixed period.” and block double counting: “If you amortize property, the part you amortize does not qualify for the section 179 expense deduction or for depreciation.” For the tax-side effects of depreciation on a later sale, see Form 4797 and Form 8582 for passive activity limits.
Which revision applies
The edition read for this page is the Instructions for Form 4562 (2025), the version dated March 30, 2026, together with the 2025 form, which is the revision irs.gov served when it was read on 2026-10-09. A later revision can change line numbers, dollar limits or percentages, so check the revision printed on the form you are filing. “For the latest information about developments related to Form 4562 and its instructions, such as legislation enacted after this form and instructions were published, go to IRS.gov/Form4562.” The IRS keeps that page at About Form 4562.
Every Form 4562 line and part page in one table
Each row links to the page that reads a line, group of lines or part of Form 4562. The right column is the summary each page carries.
| Page | What it covers |
|---|---|
| Form 4562 Lines 1 to 5: Section 179 Limits (2025 Return) | How Form 4562 lines 1 to 5 set your section 179 dollar limit on the 2025 return: the maximum, total cost, threshold, reduction and the line 5 limit. |
| Form 4562 Lines 6 to 13: Section 179 Deduction (2025 Return) | How Form 4562 lines 6 to 13 work on the 2025 return: elected cost, the business income limit, the line 12 deduction and the carryover. |
| Form 4562 Lines 14 to 20: Special Depreciation, MACRS (2025) | What goes on Form 4562 lines 14 to 20 on the 2025 return: special depreciation, other depreciation, and MACRS under the GDS and ADS. |
| Form 4562 Lines 21 to 23: Part IV Summary (2025 Return) | How Form 4562 lines 21 to 23 work on the 2025 return: listed property, the line 22 total, and the new lines 23a and 23b. |
| Form 4562 Part V Lines 24 to 41: Listed Property (2025) | What goes in Form 4562 Part V on the 2025 return: vehicle and listed property depreciation, mileage questions in Section B and employer questions in Section C. |
| Form 4562 Part VI Lines 42 to 44: Amortization (2025 Return) | How Form 4562 Part VI lines 42 to 44 work on the 2025 return: new amortization, older amortization and the total, and where the total is reported. |
Common mistakes
- Depreciating the land along with the building. The instructions say plainly: “Exception. You cannot depreciate land.”
- Treating the section 179 limit as automatic for rented-out property. The instructions exclude “Property held for investment (section 212 property).” from the definition and restrict the election for property leased to others.
- Ignoring the starting date after a conversion. The instructions say that for a home turned rental you “treat the property as being placed in service on the conversion date.”
Related: LLC for rental property, depreciation recapture, converting your home to a rental, and heirs inheriting a rental.
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- Form 4562 (2025): https://www.irs.gov/pub/irs-pdf/f4562.pdf
- Instructions for Form 4562 (2025): https://www.irs.gov/pub/irs-pdf/i4562.pdf
Read from the IRS documents linked above on October 9, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.