How to Fill Out Form 4562 (2026): Depreciation Guide

Form 4562 is where your business claims depreciation, Section 179 expensing, and amortization on business assets. You file it with your business tax return in any year you place new assets in service, claim Section 179, or own a vehicle or other listed property used for business. For calendar-year firms that means March 15, 2027 for partnerships and S corporations, and April 15, 2027 for sole proprietors and C corporations.

What's new for 2026:

100% bonus depreciation is now permanent for qualifying property acquired after January 19, 2025.
The Section 179 limit is $2,560,000, more than double the 2024 limit of $1,220,000.
The Section 179 deduction starts phasing out once 2026 purchases exceed $4,090,000.
The Section 179 cap for heavy SUVs is $32,000.

Most service firms can now write off the full cost of a year's equipment purchases.

Form 4562 at a glance

Key fact	2026 tax year
Who files	Businesses that placed assets in service in 2026, claim Section 179, own business vehicles or listed property, or begin amortizing costs
Due date	With your business return (March 15 or April 15, 2027 for calendar-year firms)
Section 179 limit	$2,560,000, reduced dollar for dollar once 2026 purchases exceed $4,090,000
Bonus depreciation	100% for qualifying property acquired after January 19, 2025
Heavy SUV Section 179 cap	$32,000
Items you can skip the form for	Purchases of $2,500 or less per item or invoice, if you make the de minimis safe harbor election

Download Form 4562

Do you need to file Form 4562 this year?

Your 2026 situation	File Form 4562?
Bought and started using new laptops, furniture, or equipment over $2,500 per item	Yes
Claiming Section 179 on any asset, including a carryover from a prior year	Yes
Own a business vehicle, new or old	Yes (Part V)
Began amortizing costs, such as startup costs or a purchased client list	Yes (Part VI)
Only depreciating older non-vehicle assets as a sole proprietor or pass-through	Usually no. The depreciation goes straight on your return
Every 2026 purchase was $2,500 or less and expensed under the de minimis election	No

Line-by-line instructions (key lines)

Part and line	What to enter	Where the number comes from in your books
Part I, lines 1 to 5	The Section 179 limit ($2,560,000), total 2026 qualifying purchases, and any phase-out reduction	Your fixed asset register for 2026 additions
Part I, lines 6 to 8	Each asset you elect to expense under Section 179 and its cost	Invoices and the fixed asset register, filtered to assets your CPA chose for Section 179
Part I, line 11	Business income limit. Section 179 cannot exceed taxable business income	Your year-end profit and loss after the final close
Part I, line 13	Section 179 carryover to 2027	Calculated on the form. Track it in your tax workpapers
Part II, line 14	Bonus depreciation on qualifying property not expensed under Section 179	Fixed asset register, with acquisition dates
Part III, line 17	Depreciation on assets placed in service before 2026	Last year's depreciation schedule
Part III, line 19	New 2026 assets depreciated normally, by recovery period (5-year, 7-year, 15-year, and so on)	Fixed asset register, with the asset class assigned to each item
Part V, lines 23 to 41	Vehicles and other listed property: cost, business use percentage, and depreciation	Mileage logs and vehicle purchase documents
Part VI, lines 42 to 44	Amortization of intangible costs, such as startup costs or acquired client lists	Amortization schedule kept with the fixed asset register

Worked example: a 12-person law firm's 2026 purchases

Purchase	How it is handled
8 laptops at $1,900 each	Expensed under the de minimis safe harbor. Not on Form 4562
Document management server, $14,000	100% bonus depreciation, Part II
Office build-out (qualified improvement property), $65,000	100% bonus depreciation as 15-year property, Part II
Partner's SUV, $72,000, 75% business use	Listed property in Part V. Only the business share qualifies, and Section 179 on the SUV is capped at $32,000
Purchased book of business from a retiring attorney, $120,000	Amortized over 15 years, Part VI

The firm writes off almost everything in year one, except the client list. That only works if each asset has a recorded cost, acquisition date, placed-in-service date, and business use percentage. Those four fields are what your CPA needs from your books.

Your Form 4562 prep checklist

When	Task
Before December 31	Make sure planned purchases are delivered, installed, and in use. Ordered but not in service does not count for 2026
December 31	Add every 2026 purchase to the fixed asset register with cost, acquisition date, and placed-in-service date
First week of January	Confirm business use percentages for vehicles from mileage logs
During year-end close	Agree with your CPA which assets get Section 179, which get bonus depreciation, and whether to make the de minimis election
Before filing	Check whether your state follows federal bonus depreciation. Many do not

Common mistakes to avoid

Counting the purchase date instead of the placed-in-service date. An asset delivered in January 2027 is a 2027 deduction, whatever the invoice says.
Treating Section 179 and bonus depreciation as interchangeable. Section 179 is limited to business income and cannot create a loss. Bonus depreciation can.
Claiming 100% business use on a vehicle without logs. Vehicles are a common audit focus. Without mileage records, the deduction is hard to defend.
Skipping the de minimis election. Expensing small items requires an election statement with your return. Without it, those items technically belong on Form 4562.
No fixed asset register. When you later sell an asset you fully wrote off, the gain is taxed back on Form 4797. You need the original records to calculate it.

If you file late or get it wrong

Form 4562 is filed with your return, so late filing follows the penalties for that return. If depreciation is claimed incorrectly, you may owe extra tax plus interest, and an accuracy-related penalty can apply. Missed depreciation for one year can be fixed on an amended return. If an incorrect method was used on two or more returns, it usually needs an accounting method change on Form 3115.

Healthcare practice callout

Dental chairs, imaging equipment, and practice management hardware all qualify for 100% bonus depreciation, including used equipment bought from a retiring practitioner. For S-corp practices, the deduction passes through to owners. Large write-offs in a single year affect owner tax planning, so time big equipment purchases with your CPA before December. Confirm the treatment of any specific asset with your CPA before relying on these notes for your own return.

Frequently asked questions

Can I deduct a laptop without filing Form 4562?

Yes, if it costs $2,500 or less and you make the de minimis safe harbor election with your return. The laptop is then deducted as a regular business expense. Anything above $2,500 per item goes through Form 4562.

Should I use Section 179 or bonus depreciation?

For most service firms in 2026, both produce a full first-year write-off. Section 179 lets you choose asset by asset but is capped at business income. Bonus depreciation applies automatically by asset class unless you opt out, and it can create a loss. Your CPA will usually combine the two.

Does equipment ordered in December count for 2026?

Only if it is delivered and in use by December 31. Depreciation starts when an asset is placed in service, not when it is ordered or paid for.

Related reading:

AI-powered. Experts in the Loop. Numetix keeps your fixed asset register current all year, recording cost, acquisition date, and placed-in-service date for every purchase as it happens. Your CPA gets a complete depreciation schedule at year-end instead of a pile of invoices. Explore Numetix bookkeeping.

Always consult your CPA for advice specific to your situation and the assets you are depreciating.

This article is for informational purposes only and does not constitute formal legal or tax advice. Always consult a qualified tax professional regarding your specific situation.