Form 4562 - Depreciation and Amortization
Use Form 4562 is to claim a deduction for depreciation and amortization; make the election under Section 179 to expense certain property; and provide information on the business/investment use of automobiles and other listed property.
Depreciation is the annual deduction that allows you to recover the cost or other basis of your business or investment property over a certain number of years. Depreciation starts when you first use the property in your business or for the production of income. It ends when you either take the property out of service, deduct all your depreciable costs or basis, or no longer use the property in your business or for the production of income.
Complete and file Form 4562 if you are claiming any of the following:
Depreciation for property placed in service during the 2006 tax year.
A section 179 expense deduction which may include a carryover from a previous year.
Depreciation on any vehicle reported on a form other than Schedule C.
Amortization of costs that begins during the 2006 tax year.
Generally, your can depreciate:
Tangible property such as buildings, machinery, vehicles, furniture, and equipment
Intangible property such as patents, copyrights, and computer software
Exception: You cannot depreciate land.