Updated October 18, 2026. Quick answer: Line 12 is your depletion deduction, and line 13 is depreciation and the section 179 expense deduction that are not part of cost of goods sold. The amount for line 13 is figured with Form 4562 and Pub. 946, not on Schedule C itself. Form 4562 must be attached only in the cases the instructions list.
Picking the Schedule C business code for your work (2025 chart): Schedule C code for landscapers and Schedule C code for truck drivers.
S corporation return (Form 1120-S) for 2025, read line by line: Form 1120-S lines 13 to 22.
Partnership return (Form 1065) for 2025, read line by line: Form 1065 lines 15 to 18.
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 1 to 5, Form 4562 lines 14 to 20 and Form 4562 Part VI.
Line 12: depletion
The instruction is three sentences: “Enter your deduction for depletion on this line.” “If you have timber depletion, attach Form T (Timber).” “See chapter 7 of Pub. 225 for additional details.” A caution notes: “Depletion is generally an item of tax preference under the Alternative Minimum Tax (AMT).” The instructions give no calculation steps for depletion, so use Pub. 225 for the amount. The form caption is “Depletion”.
Line 13: depreciation and section 179
The form’s caption is “Depreciation and section 179 expense deduction (not included in Part III)”. The instructions define the main term: “Depreciation is the annual deduction allowed to recover the cost or other basis of business or investment property having a useful life substantially beyond the tax year.” “You can also depreciate improvements made to leased business property.” “However, stock in trade, inventories, and land are not depreciable.”
On timing: “Depreciation starts when you first use the property in your business or for the production of income.” “It ends when you take the property out of service, deduct all your depreciable cost or other basis, or no longer use the property in your business or for the production of income.”
On section 179: “You can also elect under section 179 to expense part or all of the cost of certain property you bought in 2025 for use in your business.” “See the Instructions for Form 4562 and Pub. 946 to figure the amount to enter on line 13.”
What changed for 2025
The instructions list two items in their summary of what is new. On bonus depreciation: “Certain qualified property acquired and placed in service after January 19, 2025, can take a 100% bonus depreciation.” “You can also elect to use the previous bonus depreciation phasedown rates instead of 100% expensing.” On section 179: “Beginning in 2025, the maximum section 179 expense deduction is $2.5 million.” “This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $4 million.” Both items refer you to the Instructions for Form 4562 for more information.
When to attach Form 4562, and listed property
The instructions say you “must complete and attach Form 4562 only if you are claiming:” “Depreciation on property placed in service during 2025;” “Depreciation on listed property (defined later), regardless of the date it was placed in service;” or “A section 179 expense deduction.” The form is covered on the Form 4562 page.
On listed property: “Listed property generally includes, but is not limited to:” “Passenger automobiles weighing 6,000 pounds or less;” “Any other property used for transportation if the nature of the property lends itself to personal use, such as motorcycles, pickup trucks, etc.;” and “Any property used for entertainment or recreational purposes”. The recapture rule for listed property is on the Schedule C lines 6 and 7 page. Car and truck depreciation ties to line 9, covered on the Schedule C lines 8 and 9 page.
Where it goes next
Lines 12 and 13 are part of the total on line 28, whose caption is “Total expenses before expenses for business use of home. Add lines 8 through 27b”. The line 13 caption leaves out amounts included in Part III. The next expense lines are on the Schedule C lines 14 and 15 page, and the total is on the Schedule C lines 27a to 29 page.
This line is one step in a chain that ends at line 31. For a profit, the schedule says “If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2.” Schedule SE is the form that figures self-employment tax; it is introduced on the Schedule SE (Form 1040) page. The last step is covered on the Schedule C lines 31 and 32 page, and the return the schedule attaches to is explained on the Form 1040 page.
Edition and line numbers
This page reads the 2025 Schedule C (Form 1040) and its 2025 instructions, the current files irs.gov served on 2026-10-18 (byte-identical to the archived copies). They are the files for the tax year 2025 return, filed in 2026. The schedule says “Attach to Form 1040, 1040-SR, 1040-SS, 1040-NR, or 1041”. Check the tax year printed on the schedule you are filling in and use the line numbers on that year’s schedule, because a different year’s schedule can number or word its lines differently.
Common mistakes
- Depreciating land or inventory. The instructions say “stock in trade, inventories, and land are not depreciable.”
- Leaving off Form 4562 when it is required. The instructions say you “must complete and attach Form 4562 only if you are claiming:”
- Entering a section 179 amount without checking the limit. The instructions say “the maximum section 179 expense deduction is $2.5 million.”
Related: Schedule C (Form 1040), Form 4562, depreciation recapture, and self-employment tax.
Sources
- Instructions for Schedule C (Form 1040), Profit or Loss From Business (2025): https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
- Schedule C (Form 1040), Profit or Loss From Business (2025): https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Read from the IRS documents linked above on October 18, 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.