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DepreciationDrake Software User’s ManualRequiredFieldsRequired fields on the 4562 screen are described in Table 5-17.Table 5-17: Required Fields on 4562 screenFieldDescriptionForDescriptionDate AcquiredCost/BasisMethodLifeUsed for associating an asset with a form or schedule; see “AssociatingOne Screen with Another” on page 62.Field supports 42 characters. Per IRS regulations, only the first 24 charactersare transmitted in e-filed returns. Additional characters are displayedin red.Date the asset was placed in service.Depreciable basis of the asset (press F1 for further details).Depreciation method.Class life; press F1 for a recovery-period listing._NOTEIf EXP (section 179) is selected as the depreciation method, usefullife/recovery period entered in the Life field is used to calculatedepreciation adjustments for Form 6251, Alternative Minimum Tax.See “Section 179 Expense” on page 142 for more on section 179.Business %UseThe default business percent use is 100%. Enter a number in this field only if businesspercent use for the asset is not 100%.If business use dropped to 50% or less, complete the Business % use field and selectthe Recapture box under Other Information. The program recaptures any excesssection 179 or depreciation and carries it to Form 4797 Part IV and to the “Otherincome” line on the form being associated with the 4562 screen._NOTEEXP cannot be the selected method if the Recapture box ismarked. The Method field must contain an acceptable IRS methodfor the recapture to be calculated correctly.ListedPropertyTypePriorDepreciationA selection in the Listed Prop Type field is required for an asset that could be usedfor personal, entertainment, recreation, or amusement purposes. An entry here lists theasset as “Listed property” on Form 4562. Depreciation limitations could apply.The prior depreciation amount in this field is carried from the previous year (if theinformation is available). Otherwise, enter this information directly.Section 179 ExpenseDrake calculates the amount up to the established current-year limit for all propertiesexpensed under the section 179 deduction. If section 179 (EXP) is selected as thedepreciation method on more than one 4562 screen, the program expenses the firstlisteditems first, regardless of which schedule lists the asset. The limitation occurswhen the total of the expensed assets reaches the limited established for the currentyear (again regardless of schedule).142 Tax Year 2008