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Discussion:Depreciation for S Corp

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Discussion Forum Index --> Basic Tax Questions --> Depreciation for S Corp


Discussion Forum Index --> Tax Questions --> Depreciation for S Corp

Gplourde (talk|edits) said:

10 March 2014
Long story short is I'm preparing an 1120S. The client hasn't put any new property in service or taken section 179 on anything. Do I need to include a depreciation schedule with the return?

Taxmonkey (talk|edits) said:

10 March 2014
I include a depreciation schedule on any return that includes depreciation. I feel like this is a trick question...

Spell Czech (talk|edits) said:

10 March 2014
Here's what IRS's instructions for the form for 2013 say:


Who Must File
Except as otherwise noted, complete and file Form 4562 if you are claiming any of the following.

  • Depreciation for property placed in service during the 2013 tax year.
  • A section 179 expense deduction (which may include a carryover from a previous year).
  • Depreciation on any vehicle or other listed property (regardless of when it was placed in service).
  • A deduction for any vehicle reported on a form other than Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business.
  • Any depreciation on a corporate income tax return (other than Form 1120S).
  • Amortization of costs that begins during the 2013 tax year.


Judge for yourself how the IRS expects us to interpret what they've written here. Yeah, maybe it's a trick question, or maybe a trick *answer*. The IRS instructions don't say not to file Form 4562 if none of these apply [applies?] and they don't say file *only if* one or more of these apply.

"Use other door, but only if you want to enter the building."

JR1 (talk|edits) said:

March 10, 2014
So you have nothing depreciating...and wonder if you need that form?

YOu should probably include the energy credit form. Household employees. Foreign tax credits. Etc.

Spell Czech (talk|edits) said:

10 March 2014
C'mon, JR1. When the OP says "The client hasn't put any new property in service or taken section 179 on anything" it should be obvious that he means **this year** don't you think?

Ckenefick (talk|edits) said:

10 March 2014
If you're suggesting that the taxpayer put "used" property in service, you'd need Form 4562 for that.

Spell Czech (talk|edits) said:

10 March 2014
Let me restate the question. Do IRS's instructions for Form 4562 say that Form 4562 is required to be filed when none of the conditions listed in those instructions is satisfied?

JR1 (talk|edits) said:

March 10, 2014
Spell, I read it as "ever", not this year. Implied. Why Kevin asks so many questions.

Taxmonkey (talk|edits) said:

10 March 2014
Why did you guys start talking about Form 4562? OP was asking about a depreciation schedule. which to me is a table of assets that are currently being depreciation and generally would list the dates placed in service, the original basis, the prior depreciation, and this years depreciation. It is a worksheet not filed with the tax return but as I said, something I always include with the clients return copy whenever there are assets being depreciated. Perhaps I misunderstood the original question....

JR1 (talk|edits) said:

March 10, 2014
You see! Any answer might do!

Gplourde (talk|edits) said:

10 March 2014
I know CCH says you don't need a Form 4562 if there isn't any new depreciable property or Section 179 elections and you can use a depreciation schedule instead. Does this mesh with other preparers' experiences?

Ckenefick (talk|edits) said:

10 March 2014
What is CCH's source of that information?

MWPXYZ (talk|edits) said:

10 March 2014
I don't know if CCH is correct, but that "meshes" with my experience; except, in my case, the IRS doesn't even get a depreciation schedule. Vehicles being the only normal obstacle to avoid filing.

Gplourde (talk|edits) said:

10 March 2014
CCH didn't give one :( It's a S Corp, so would 4562 be necessary?

JR1 (talk|edits) said:

March 10, 2014
I frankly admit that I don't care about this anymore. My software knows, whether efiling or printing, what comes out is what goes in.

Aatop (talk|edits) said:

10 March 2014
To answer your question, I have never included a depreciation schedule with an 1120S. Regarding the 4562, I chose not to file when no new assets are placed into service during the year and no vehicles are involved. I have never had a problem with this issue.

Gplourde (talk|edits) said:

11 March 2014
Aatop, thanks for the insight... I'll follow that.

Doug M (talk|edits) said:

11 March 2014
Regarding the 4562, I chose not to file when no new assets are placed into service during the year and no vehicles are involved. I have never had a problem with this issue.

What form do you show the current year expense for previous years assets on?

Captcook (talk|edits) said:

12 March 2014
Page 1 of the 1120S seems to work just fine.

Doug M (talk|edits) said:

12 March 2014
Capt--I am referring to the notion that fixed assets, depreciation schedules and any other related elections/schedules are a part of the tax returns that should always be given to the client, on an annual basis.

I am well aware the IRS does not ask for form 4562 if there are no additions in a given year. Am tired of issues surrounding incomplete/non-existent depreciation schedules when clients need these as a part of their tax records. As a profession, we should change our ways. It has to be numero uno in issues with clients moving to new preparers.

Harry Boscoe (talk|edits) said:

12 March 2014
Is there any indication anywhere that IRS ever expects to get a depreciation schedule included with the tax return that is sent to the IRS, let's call it "the filing copy"...?

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