Updated October 18, 2026. Quick answer: Lines 14 to 16 in Part II hold the special depreciation allowance and other depreciation. Part III holds MACRS: line 17 for property placed in service before 2025, line 18 for the general asset account election, lines 19a to 19j for 2025 property under the general system and lines 20a to 20e under the alternative system. Percentages come from the instructions’ tables.
More IRS forms and schedules for individual filers, read line by line: Form 2106 standard mileage rate.
Related reading on this site: IRS Publication 946.
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 and Form 1065 Schedule K lines 12 to 14.
What lines 14 to 20 ask for
Part II is headed “Special Depreciation Allowance and Other Depreciation” and Part III is headed “MACRS Depreciation”. Both parts carry the note “Don’t include listed property.” Listed property goes in Part V instead. This page follows lines 6 to 13 and is part of the Form 4562 walk-through.
Line 14: special depreciation allowance
The instructions say “For qualified property (defined later) placed in service during the tax year, you may be able to take an additional special depreciation allowance.” On timing and order, they say “The special depreciation allowance applies only for the first year the property is placed in service.” and “The allowance is an additional deduction you can take after any section 179 expense deduction and before you figure regular depreciation under MACRS.”
For property acquired in 2025 the instructions say “Certain qualified property (defined below) acquired after January 19, 2025, is eligible for a 100% special depreciation allowance.” They add “However, you can elect to take a 40% special depreciation allowance for certain qualified property (60% for property with a long production period and certain aircraft), instead of the 100% special depreciation allowance in the first tax year ending after January 19, 2025.” The qualified property list begins “Tangible property depreciated under MACRS with a recovery period of 20 years or less;”. The instructions also cover property acquired before January 20, 2025, plants bearing fruits and nuts, reuse and recycling property and qualified production property, each with its own paragraph, so read the one that fits your asset.
Line 15: other methods not based on a term of years
The instructions say “Report on this line depreciation for property that you elect to depreciate under the unit-of-production method or any other method not based on a term of years”. They also require “Attach a separate sheet showing:” a description of the property and method, and the depreciable basis.
Line 16: other depreciation
The instructions say “Enter the total depreciation you are claiming for the following types of property (except listed property and property subject to a section 168(f)(1) election).” The first item on the list is “ACRS property (pre-1987 rules).” The instructions end the line with the limit “Prior years’ depreciation, plus current year’s depreciation, can never exceed the depreciable basis of the property.”
Lines 17 and 18: earlier-year MACRS and general asset accounts
For line 17 the instructions say “For tangible property placed in service in tax years beginning before 2025 and depreciated under MACRS (“MACRS asset”), enter the deductions for the current year.” For line 18 they say “To simplify the computation of MACRS depreciation, you can elect to group assets into one or more general asset accounts.” “To make the election, check the box on line 18.” “Once made, the election is irrevocable and applies to the tax year for which the election is made and all later tax years.”
Lines 19a to 19j: 2025 property, general system
The instructions say “Use lines 19a through 19j only for assets placed in service during the tax year beginning in 2025”. They define the system this way: “The term “Modified Accelerated Cost Recovery System” (MACRS) includes the General Depreciation System (GDS) and the Alternative Depreciation System (ADS).” For column (a) the instruction is “Sort the property you acquired and placed in service during the tax year” by classification. The depreciation percentages are in tables in the instructions; this page does not copy them, so use the table for your property’s classification and convention. The form’s own columns are classification, month and year placed in service, basis, recovery period, convention, method and depreciation deduction. Rental real estate owners can see how depreciation shows up on their returns at Schedule E and at converting your home to a rental.
Lines 20a to 20e: 2025 property, alternative system
The instructions say “Complete lines 20a through 20e for assets, other than automobiles and other listed property, placed in service only during the tax year beginning in 2025 and depreciated under ADS.” “Report on line 17 MACRS depreciation on assets placed in service in prior years.” The What’s New section adds “New lines 19h and 20e have been added to report MACRS depreciation during the 2025 tax year for 50-year property.”
Where the number comes from
Line 14 comes from the basis of your qualified property and the allowance rate that applies to it. Line 17 comes from your prior-year depreciation records, and the instructions point to the line 19 column (g) instructions for the method. Lines 19 and 20 come from your asset basis, the recovery period and convention, and the percentage tables.
Where it goes next
These lines flow into the Part IV total, where line 22 reads “Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.” See lines 21 to 23. Business owners who file Schedule C can compare at Schedule C lines 12 and 13.
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
- Putting a vehicle or other listed property in Part II or III. The form says “Don’t include listed property.”
- Using lines 19a to 19j for older assets. The instructions say “Report on line 17 MACRS depreciation on assets placed in service in prior years.”
- Taking regular depreciation without reducing basis. The instructions say “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.”
Related: Form 4562, Schedule E, converting your home to a rental, and Schedule C lines 12 and 13.
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.