Additional Information — 2025 Inst 4562 (PDF)

For more information about depreciation and amortization (including information on listed property), see the following.

Section 179 Property Section 179 property is property that you acquire by purchase for use in the active conduct of your trade or business, and is one of the following.

Qualified section 179 real property. For more information, see Special rules for qualified section 179 real property , later.
Tangible personal property, including cellular telephones, similar telecommunications equipment, and air conditioning or heating units (for example, portable air conditioners or heaters). Also, tangible personal property may include certain property used mainly to furnish lodging or in connection with the furnishing of lodging (except as provided in section 50(b)(2)).
Other tangible property (except buildings and their structural components) used as:

Depreciation Depreciation is the annual deduction that allows you to recover the cost or other basis of your business or investment property over a certain number of years. Depreciation starts when you first use the property in your business or for the production of income. It ends when you either take the property out of service, deduct all your depreciable cost or basis, or no longer use the property in your business or for the production of income.

Generally, you can depreciate:

Tangible property such as buildings, machinery, vehicles, furniture, and equipment; and
Intangible property such as patents, copyrights, and computer software.

Exception. You cannot depreciate land.

Accelerated Cost Recovery System The Accelerated Cost Recovery System (ACRS) applies to property first used before 1987. It is the name given for the tax rules that allow a taxpayer to recover through depreciation deductions the cost of property used in a trade or business or to produce income. These rules are mandatory and generally apply to tangible property placed in service after 1980 and before 1987. If you placed property in service during this period, you must continue to figure your depreciation under ACRS.

An integral part of manufacturing, production, or extraction, or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services;
A research facility used in connection with any of the activities in (1) above; or
A facility used in connection with any of the activities in (1) above for the bulk storage of fungible commodities.

Single purpose agricultural (livestock) or horticultural structures.
Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum.
Off-the-shelf computer software.

Section 179 property does not include the following.

Property held for investment (section 212 property).
Property used mainly outside the United States (except for property described in section 168(g)(4)).
Property used by a tax-exempt organization (other than a section 521 farmers’ cooperative) unless the property is used mainly in a taxable unrelated trade or business.
Property used by a governmental unit or foreign person or entity (except for property used under a lease with a term of less than 6 months).

See the instructions for Part I and Pub. 946.

Special rules for qualified section 179 real property. You can elect to treat certain qualified real property placed in service during the tax year as section 179 property. See Election for certain qualified section 179 real property under Part I, later, for information on how to make this election. If the

2 Instructions for Form 4562 (2025)

election is made, the term “section 179 property” will include any qualified real property which is:

Qualified improvement property as described in section 168(e)(6), and
Any of the following improvements to nonresidential real property placed in service after the date the nonresidential real property was first placed in service.

Roofs.
Heating, ventilation, and air-conditioning property.
Fire protection and alarm systems.
Security systems. This property is considered “qualified section 179 real property.”

A deduction attributable to qualified section 179 real property which is disallowed under the trade or business income limitation (see Business Income Limit in chapter 2 of Pub. 946) for 2025 can be carried over to 2026. Thus, the amount of any 2025 disallowed section 179 expense deduction attributable to qualified section 179 real property will be reported on line 13 of Form 4562.

Amortization Amortization is similar to the straight line method of depreciation in that an annual deduction is allowed to recover certain costs over a fixed time period. You can amortize such items as the costs of starting a business, goodwill, and certain other intangibles. See the instructions for Part VI.

You have at least one regular work location away from your home and the travel is to a temporary work location in the same trade or business, regardless of the distance. Generally, a temporary work location is one where your employment is expected to last 1 year or less. See Pub. 463 for details.
The travel is to a temporary work location outside the metropolitan area where you live and normally work.

Listed Property Listed property generally includes the following.

Passenger automobiles weighing 6,000 pounds or less. See Limits for passenger automobiles, later.
Any other property used for transportation if the nature of the property lends itself to personal use, such as motorcycles, pickup trucks, SUVs, aircraft, etc.
Any property used for entertainment or recreational purposes (such as photographic, phonographic, communication, and video recording equipment).

Exceptions. Listed property does not include:

Photographic, phonographic, communication, or video equipment used exclusively in a taxpayer’s trade or business or at the taxpayer’s regular business establishment;
Any computer or peripheral equipment used exclusively at a regular business establishment and owned or leased by the person operating the establishment;
An ambulance, hearse, or vehicle used for transporting persons or property for compensation or hire; or
Any truck or van placed in service after July 6, 2003, that is a qualified nonpersonal use vehicle.

For purposes of the exceptions above, a portion of the taxpayer’s home is treated as a regular business establishment only if that portion meets the requirements for deducting expenses attributable to the business use of a home. However, for any property listed in (1) above, the regular business establishment of an employee is their employer’s regular business establishment.

Commuting Generally, commuting is defined as travel between your home and a work location. However, travel that meets any of the following conditions is not commuting.

Your home is your principal place of business for purposes of deducting expenses for business use of your home and the travel is to another work location in the same trade or business, regardless of whether that location is regular or temporary and regardless of distance.