IRS Form 4562 Instructions 2025: Download PDF & Guide

IRS Form 4562 Instructions 2025 – If you’re a U.S. business owner, self-employed individual, or corporation filing 2025 taxes, IRS Form 4562 (Depreciation and Amortization) is essential for claiming valuable tax deductions on business assets. This official IRS form helps you deduct depreciation, elect Section 179 expensing, claim bonus (special) depreciation, and report listed property like vehicles.

In this comprehensive 2025 guide, you’ll find clear, step-by-step IRS Form 4562 instructions, 2025 updates (including major changes from new legislation), who must file, and direct links to download the official PDF. All information comes straight from the latest IRS sources as of April 2026.

What Is IRS Form 4562?

Form 4562 reports:

  • Depreciation and amortization deductions for business or investment property.
  • The Section 179 election to immediately expense qualifying property instead of depreciating it over time.
  • Business/investment use of automobiles and other listed property.

Do not use it for the Section 179D energy efficient commercial building deduction (use Form 7205 instead).

Related reading: IRS Publication 946 (How To Depreciate Property) is the go-to resource for deeper details.

Who Must File IRS Form 4562 in 2025?

File a separate Form 4562 for each business or activity if you are claiming any of the following:

  • Depreciation for property placed in service during 2025.
  • A Section 179 expense deduction (including carryovers).
  • Depreciation on any vehicle or listed property (regardless of placement year).
  • Vehicle expenses on a form other than Schedule C (Form 1040).
  • Any depreciation on a corporate return (except Form 1120-S).
  • Amortization that begins in 2025.

Employees claiming job-related vehicle expenses should use Form 2106 instead.

2025 Key Changes & What’s New on Form 4562

The IRS updated Form 4562 and instructions for tax year 2025 with these important developments (per P.L. 119-21, the One Big Beautiful Bill Act, and other updates):

  • Section 179 limits: Maximum deduction = $2,500,000. The limit phases out dollar-for-dollar when total Section 179 property placed in service exceeds $4,000,000. SUV limit = $31,300.
  • Bonus (special) depreciation allowance:
    • 100% reinstated for qualified property acquired and placed in service after January 19, 2025 (including long-production-period property and certain aircraft). You can elect 40% (or 60% for long-production/aircraft) instead.
    • 40% (60% for long-production/aircraft) for property placed in service after Dec. 31, 2024, and before Jan. 1, 2026, if acquired earlier.
    • New 100% allowance for qualified production property placed in service after July 4, 2025 (construction/acquisition after Jan. 19, 2025).
  • New lines added: Line 19h (GDS 50-year property) and 20e (ADS 50-year property); Line 23 split into 23a/23b for capitalized costs under Section 263A; new Line 24c for aircraft ownership/lease/charter in Part V.
  • Research & experimental (R&E) expenditures (Section 174A): Domestic expenses are now fully deductible as current business expenses (or elect to capitalize/amortize over 60+ months or 10 years). Foreign expenses must be amortized over 15 years.
  • Solar or wind energy property: No longer classified as 5-year property for property beginning construction after Dec. 31, 2024.

Always check IRS.gov/Form4562 for the latest future developments.

How to Download IRS Form 4562 PDF (Official 2025 Version)?

Direct official links (updated for 2025 tax year):

These are the official, free IRS downloads. Never use third-party sites that charge fees or may contain outdated versions.

Step-by-Step IRS Form 4562 Instructions 2025

Complete the form in this order: Part V (listed property) first if applicable, then Part I, II, III, etc. Use a separate form for each business/activity. Keep detailed records (basis, business use %, dates, etc.).

Part I: Election To Expense Certain Property Under Section 179

  • Line 1: Enter $2,500,000 (maximum).
  • Line 2: Total cost of qualifying Section 179 property placed in service in 2025.
  • Line 3–5: Apply phaseout if over $4M; determine your dollar limit.
  • Line 6–9: List property, elected costs, and calculate tentative deduction.
  • Line 10–13: Add carryover, apply business income limit, and calculate final deduction + carryover to 2026.

Tip: Qualifying property must be purchased for active business use (>50% for listed property).

Part II: Special Depreciation Allowance & Other Depreciation

  • Line 14: Claim bonus depreciation on qualified property (after Section 179).
  • Line 15–16: Other non-MACRS depreciation (attach statement).

Part III: MACRS Depreciation

Use this for most post-1986 property.

  • Section A: Prior-year assets + new 2025 assets (lines 19a–19j, including new 50-year line 19h).
  • Section B/C: Alternative Depreciation System (ADS) if required (new 50-year line 20e).
  • Choose classification, recovery period, convention (half-year, mid-quarter, mid-month), method (200% DB, 150% DB, or SL), and compute deduction from IRS tables.

Part IV: Summary

  • Line 22: Total depreciation/amortization.
  • Lines 23a/23b: Capitalized costs under Section 263A.

Part V: Listed Property (Vehicles, Aircraft, etc.)

Critical for passenger autos, trucks, etc.

  • Line 24c: New aircraft checkbox.
  • Lines 25–29: Special allowance, depreciation, Section 179 (SUV limit applies).
  • 2025 passenger auto limits (prorated by business %): First year $12,200 (no bonus) or higher with bonus; second year $19,600, etc.
  • Maintain logs or written policy for employee vehicles.

Part VI: Amortization

  • Line 42: List costs (e.g., Section 197 intangibles over 15 years, startup/organizational over 180 months, R&E as applicable).
  • Line 43–44: Total amortization.

Pro tip: Use the IRS Depreciation Worksheet in Pub. 946 to track everything.

Common Mistakes to Avoid

  • Forgetting to complete Part V before Part I for listed property.
  • Missing business income limitation on Section 179.
  • Incorrect conventions or recovery periods.
  • Failing to attach required statements for elections or R&E amortization.
  • Not tracking basis reductions after Section 179 or bonus depreciation.

Frequently Asked Questions (FAQs)

  1. When do I need to file Form 4562?
    With your 2025 tax return (e.g., Form 1040, 1120, 1065) by the due date (including extensions).
  2. Can I e-file with Form 4562?
    Yes—most tax software supports it.
  3. What if I made a mistake on a prior-year Form 4562?
    File an amended return (Form 1040-X or equivalent) and attach a corrected Form 4562 if needed.
  4. Where can I get help?
    Visit IRS.gov, use the Interactive Tax Assistant, or consult a qualified tax professional/CPA.

Final Thoughts & Next Steps

Claiming the right depreciation, Section 179, and bonus deductions on IRS Form 4562 can save your business thousands in 2025 taxes—especially with the reinstated 100% bonus depreciation and higher Section 179 limits.

Download your official 2025 Form 4562 and instructions now:

For the most accurate results, pair this guide with IRS Publication 946 and consider professional tax software or a CPA. Tax rules are complex—always verify with the latest IRS.gov updates or a licensed tax advisor.

This article is for informational purposes only and is not tax advice. Consult a qualified tax professional for your specific situation. Last updated based on IRS publications as of April 2026.