This article is a GENERAL GUIDELINE to determine if the correct information appears on the 4562.

 

In Sage Fixed Assets:

Create groups in Group Manager using the criteria for each line below, and the run the Depreciation Expense report using each group. See How to create a group.

Note Depreciation Methods:

• MACRS General Depreciation (GDS) methods: MA, MF, MR, MI, MT
• Alternative Depreciation System (ADS) methods: AD, AA, RM, RH
• Accelerated Cost Recovery System depreciation (ACRS) methods: AT, SA, ST
• Straight-Line depreciation (GAAP) methods: SL, SF, SB, SD, SH, RV
• The Declining-Balance depreciation (GAAP) methods: DB, DC, DD, DE, DH, DI
• The Sum-of-the-Year’s Digits depreciation (GAAP) methods: YD, YH, YD

For asset information to appear for a year-end of December, the Current through date will need to represent this date.

Line 2 Tax Expense Report - Acquired Value

• Placed in Service is between 1/1/2024 and 12/31/2024
• Tax Book 179 Qualified? is T

Line 14 Tax Expense Report - 168 Expense

• Prop Type is P
• Prop Type is R
• Placed in Service is between 1/1/2024 and 12/31/2024

Line 16 Tax Expense Report - Current YTD

• Prop Type is P
• Prop Type is R
• Sort by Depreciation Method: Depreciation Method is Non-MACRS

Line 17 Tax Expense Report - Current YTD

• Prop Type is P
• Prop Type is R
• Placed in Service is less than 1/1/2024
• Sort by Depreciation Method: Depreciation Method is MACRS GDS

Line 19 Tax Expense Report - Current YTD

• Prop Type is P
• Prop Type is R
• Placed in Service is between 1/1/2024 and 12/31/2024
• Depreciation Method is MACRS (MF, MA, MT, MI, MR)
• Sort by Estimated Life
  
  Note: If taking 100% Bonus Depreciation your total will NOT appear on line 19. The 168 amounts will appear in Line 14. If it’s a listed property (A, T, Q, S) it will appear in Line 25
  Note: Part III, 19 i Nonresidentaial real property must meet three conditions:
  • Property type R
  • Depreciation method MF100
  • Estimated life 39 years

Line 20 Tax Expense Report - Current YTD

• Prop Type is P
• Prop Type is R
• Depreciation Method is AD
• Depreciation Method is AA
• Depreciation Method is RM
• Depreciation Method is RH
• Placed in Service is between 1/1/2024 and 12/31/2024
• Sort by ADS life

Line 23 Manual Entry - §263A capitalized inventory

• In the Report Dialogue for the 4562 box, Choose the Additional Information button at the bottom. Manually enter the amount in Part IV-§263A amount - capitalized inventory

Line 25 Tax Expense Report - 168 Expense

• Prop Type is A
• Prop Type is Q
• Prop Type is T
• Prop Type is S
• Placed in Service is between 1/1/2024 and 12/31/2024

Line 26 Tax Expense Report - Acquired Value and Current YTD

• Prop Type is A
• Prop Type is Q
• Prop Type is T
• Prop Type is S
• Placed in Service is less than 1/1/2024

Line 42 Tax Expense Report - Current YTD

• Prop Type is Z
• Placed in Service is between 1/1/2024 and 12/31/2024

Line 43 Tax Expense Report - Current YTD

• Prop Type is Z
• Placed in Service is less than 1/1/2024