Form 4562 is a tax form used by businesses to claim depreciation and amortization deductions for property placed into service during the tax year.
This form allows taxpayers to report the depreciation of tangible assets, such as machinery or equipment, and to calculate the allowable deduction for the year. It is also used to claim the Section 179 deduction, which permits businesses to deduct the full cost of certain qualifying property as an expense instead of capitalizing and depreciating it over time.
For example, if a business purchases a new piece of equipment for $10,000 and chooses to take a Section 179 deduction, it would report this on Form 4562, enabling it to deduct the entire cost from its taxable income in that year, subject to limitations.
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