Okay, I have a nebulous question about Depreciation and Amortization on my Federal income tax return.
On Schedule 4562, part III Section A, Line 17 says:
MACRS deductions for assets placed in service in tax years beginning before 2007.…._________
The instructions say:
Line 17
For tangible property placed in service in tax years beginning before 2007 and depreciated under MACRS, enter the deductions for the current year. To figure the deductions, see the instructions for line 19, column (g).
Line 19 column (g) simply deals with the convention, method and amount of the depreciation deduction.
I should just be able to add up Part IV, line 22 on my previous year’s schedule 4562, then put that amount in part III Section A, Line 17 on this year’s schedule 4562, right?
For each rental property you own, you file a Form 4562 with your 2008 tax return only if you are claiming
Depreciation for property placed in service during the 2008 tax year.
Amortization of costs that begins during the 2008 tax year.
Depreciation on any vehicle or other listed property (regardless of when it was placed in service).
The amount you enter on line 17 (Section A) is the amount of depreciation you are claiming in 2008 for the dwelling structure and the capital improvements that were in service last year. The number you are entering on this line is the new depreciation that occurred in 2008.
Depreciation you are taking this year for your personal property is entered in Section B line 19b. Also in Section B, enter the first year depreciation for any new capital assets you are placing in service for the first time in 2008.
If you don’t have any 5-year property in your rental, don’t have any vehicle depreciation, did not refinance your rental property, and did not put any new capital assets into service in 2008 for this property, you don’t file Form 4562.