User's Manual - Drake Software

Drake Software User’s Manual
Depreciation
Taxpayer
Signing for
Spouse
If the taxpayer is signing the return for the spouse, mark the box in the Signing for
Spouse section of the MISC screen and provide an explanation using the SCH screen,
code 013. (See “Unformatted Schedules” on page 189.)
Depreciation
Form 4562, Depreciation and Amortization, is used to claim deductions for depreciation
and amortization, to elect to expense certain property under section 179, and to
indicate automobile and other listed property use for business/investment purposes.
Where the Information Flows
Data entered on the 4562 screen flows to the applicable sections of Form 4562. The
information is also used to calculate data for other related forms and schedules.
Form 4562
Depreciation
Schedules
Because the data entered into the 4562 screen flows to Form 4562, you should not
have to use screens 6, 7, 8, and 9 (4562 Parts 1 through 5c) unless entering a pre-prepared
return with no supporting documentation. Data also flows, as applicable, from
the 4562 screen to Form 4797 (Sales of Business Assets) and Form 3468 (Investment
Tax Credit).
Screen 4562 is used to create depreciation or amortization schedules for Schedules A,
C, E, and F; for Forms 2106, 4835, and 8829; and for tax returns of partners in a partnership
and shareholders in an S corporation.
Depreciation data is also used for the Auto Expense Worksheets for Schedules C, E,
and F, and Form 4835. To create an auto worksheet, see “Auto Expenses” on
page 171. To associate a depreciable asset with another screen in Drake, see “Associating
One Screen with Another” on page 73.
TIP
Click the Form 4562 link or press CTRL+W inside the Depreciation
field of a supporting schedule’s screen (such as Schedule E) to access
the associated 4562 screen (or to begin a new 4562 screen).
Entering Depreciable Assets
Screen code: 4562
Use the 4562 screen, accessible from the Income tab, to enter depreciation data. Enter
each asset on a separate 4562 screen. (To open a new screen, press PAGE DOWN.)
TIP
Grid data entry can be used for the 4562 screen. Press F3 to switch to
and from grid data. See “Grid Data Entry” on page 68.
Tax Year 2012 165