Depreciation Worksheet

The worksheet shows the information needed to figure depreciation on each item of property and the total depreciation for 2000. The corporation's books and records support the information on the worksheet. There is an account for each item of property. These accounts show the following information.

• The date of acquisition.
• A description of the property.
• The cost or other basis of the property.
• The amount of section 179 deduction claimed.
• The MACRS depreciation method used.
• The property class and recovery period.
• The depreciation deducted each year.

For information on business recordkeeping, see Publication 583, Starting a Business and Keeping Records.

On February 2, 1998, the corporation bought and placed in service the building used as its place of business for $250,000. It also bought and placed in service on that date the following property.

• A desk and chair for $1,025.
• Refrigeration equipment for $4,500.
• Work tables for $1,200.
• A cash register for $675.

The building is nonresidential real property. Fields of Flowers depreciates it using the straight line method and mid-month convention over a recovery period of 39 years. It uses Table A-7a.

The desk and chair are 7-year property. The refrigeration equipment, work tables, and cash register are 5-year property. Because no property was placed in service in the last quarter of the tax year, the corporation uses the half-year convention for this property. It uses Table A-1. It claimed a section 179 deduction for the full cost of the desk and chair. It takes no depreciation for this property.

In 1999, Fields of Flowers bought and placed in service the following property.

• On April 16, a delivery truck for $31,000.
• On July 3, a typewriter for $300.

It chose to use the 150% declining balance method over the GDS recovery period for these property items. The recovery period for both the truck and typewriter is 5 years. It applied the half-year convention for both items and used Table A-14. It claimed a $19,000 section 179 deduction for the truck. The basis of the truck for depreciation is $12,000 ($31,000 - 19,000). The basis for depreciation of the typewriter is its cost of $300.

In 2000, Fields of Flowers bought and placed in service the following property.

• On June 21, a computer for $3,000.
• On September 9, file cabinets for $475.
• On November 1, store counters for $1,870.
• On November 16, a USA 280F van for $24,800.

The total bases of all property placed in service in 2000 is $30,145. The total of the bases of the counter and the van, placed in service during the last three months of the corporation's tax year, is $26,670. This amount is more than 40% of the total bases of all property placed in service during 2000. The corporation must apply the mid-quarter convention for all four items.

The computer is 5-year property for which the corporation uses Table A-3. The van is 5-year property for which it uses Table A-5. The corporation elects to claim a section 179 deduction of $20,000 for the van. The basis for depreciation of the van is $4,800 ($24,800 - $20,000).

Depreciation Worksheet, Form 4562

Form 4562, page 1

Form 4562, page 2

The file cabinets are 7-year property. The counters are 5-year property. The corporation elects to use the ADS method for these property items. The recovery period is 10 years for the cabinets and 9 years for the counters. The corporation uses Table A-11 for the file cabinets and Table A-12 for the store counters.

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