Updated October 18, 2026. Quick answer: Part IV pulls the form together. Line 21 brings in listed property from Part V line 28. Line 22 is the total of your deductions, which you enter on the appropriate lines of your return. Lines 23a and 23b are new for 2025 and ask for basis added by section 263A capitalization.
Related reading on this site: IRS Publication 946.
S corporation return (Form 1120-S) for 2025, read line by line: Form 1120-S Schedule K lines 11 to 13.
What lines 21 to 23 ask for
Part IV is headed “Summary (See instructions.)”. The captions are “Listed property. Enter amount from line 28” for line 21 and Total, then “Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21” for line 22. The earlier lines are at lines 14 to 20. This page is part of the Form 4562 walk-through.
Line 21: listed property
The instructions have no separate paragraph for line 21, so the caption is the guide: “Listed property. Enter amount from line 28”. Line 28 is the total of the depreciation column in Part V, covered at Part V.
Line 22: the total
The caption reads “Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return.” Partnerships and S corporations follow a different rule: “A partnership or S corporation does not include any section 179 expense deduction (line 12) on this line.” “Instead, any section 179 expense deduction is passed through separately to the partners and shareholders on the appropriate line of their Schedules K-1.” The pass-through side is covered at Schedule K-1 box 12.
Lines 23a and 23b: costs capitalized under section 263A
The instructions open the topic in What’s New: “Line 23 of Form 4562 has been divided into lines 23a and 23b”. The line 23 instructions say “If you are subject to the uniform capitalization rules of section 263A, enter the increase in basis from costs you must capitalize.” They add “Complete lines 23a and 23b for assets shown in Part III that you have placed in service during the current tax year and have costs capitalized under section 263A.”
The captions are “For assets shown in Part III that are placed in service during the current tax year, and have costs capitalized under section 263A, enter the amount of the basis attributable to interest costs capitalized under section 263A(f)” for line 23a, and the same lead-in for line 23b but for “costs capitalized under section 263A other than interest costs capitalized under section 263A(f)”. Line 23a points to the interest rules, and line 23b to “Regulations section 1.263A-1.”
Where the number comes from
Line 21 comes from line 28, line 12 from lines 6 to 13, lines 14 to 17 and the column (g) amounts on lines 19 and 20 from lines 14 to 20. Lines 23a and 23b come from your own capitalization records.
Where it goes next
Line 22 is the amount you carry to your return. The form says to enter it “here and on the appropriate lines of your return”. For a sole proprietor that is the depreciation line of the business schedule, explained at Schedule C lines 12 and 13, and for rental property the rental schedule at Schedule E.
Edition and line numbers
This page reads the 2025 Form 4562, Depreciation and Amortization, and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form’s own header says “Attach to your tax return.” Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Including the line 12 section 179 deduction on line 22 as a partnership or S corporation. The instructions say “A partnership or S corporation does not include any section 179 expense deduction (line 12) on this line.”
- Leaving out lines 14 to 17 or the column (g) amounts. The caption says “Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.”
- Skipping lines 23a and 23b when costs were capitalized. The instructions say “Complete lines 23a and 23b for assets shown in Part III that you have placed in service during the current tax year and have costs capitalized under section 263A.”
Related: Form 4562, Schedule K-1 box 12, Schedule C lines 12 and 13, and Schedule E.
Sources
- Instructions for Form 4562, Depreciation and Amortization (2025): https://www.irs.gov/pub/irs-pdf/i4562.pdf
- Form 4562, Depreciation and Amortization (2025): https://www.irs.gov/pub/irs-pdf/f4562.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.