Part I. Election To Expense Certain

Note: An estate or trust cannot make this election.

You can elect to expense part or all of the cost of section 179 property (defined earlier) that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business.

However, for taxpayers other than a corporation, this election does not apply to any section 179 property you purchased and leased to others unless:

You manufactured or produced the property; or
The term of the lease is less than 50% of the property’s class life and, for the first 12 months after the property is transferred to the lessee, the deductions related to the property allowed to you as trade or business expenses (except rents and reimbursed amounts) are more than 15% of the rental income from the property.

Election. You must make the election on Form 4562 filed with either:

The original return you file for the tax year the property was placed in service (whether or not you file your return on time), or

Instructions for Form 4562 (2025) 3

Worksheet for Lines 1, 2, and 3 Worksheet 1. Keep for Your Records
Maximum section 179 limitation calculation.
1.*	Enter total cost of section 179 property (including qualified section 179 real property) placed in service during the tax year beginning in 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.	The maximum section 179 deduction limitation for 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$2,500,000
3.	Enter the smaller of line 1 or line 2 here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.	Enter the amount from line 3 here and on Form 4562, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum threshold cost of section 179 property before reduction in limitation calculation.
5.	Enter the amount from line 1 here and on Form 4562, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.	Base maximum threshold cost of section 179 property before reduction in limitation for 2025. Enter this amount on Form 4562, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$4,000,000
Maximum elected cost for Form 4562, lines 6 and 7, column (c).
7.	Enter the smaller of line 1 or line 4.The total amount you enter on Form 4562, lines 6 and 7, column (c), cannot exceed this amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* For line 1 of this worksheet, include the total amount of eligible section 179 property (including qualified section 179 real property), not just the amount for which you are making the election. See the instructions forline 2.

An amended return filed within the time prescribed by law for the applicable tax year. The election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. The amended return must also include any resulting adjustments to taxable income.

Election for certain qualified section 179 real property. You can elect to expense certain qualified real property that you first placed in service as section 179 property for tax years beginning in 2025. For more information, see Election , earlier.

Revocation. The election (or any specification made in the election) can be revoked without obtaining IRS approval by filing an amended return. The amended return must be filed within the time prescribed by law for the applicable tax year. The amended return must include any resulting adjustments to taxable income or to the tax liability (for example, allowable depreciation in that tax year for the item of section 179 property to which the revocation pertains). For more information and examples, see Regulations sections 1.179-5(c)(3) and (c)(4). Once made, the revocation is irrevocable.

Caution: If you elect to expense section 179 property, you must reduce the amount on which you figure your depreciation or amortization deduction (including any special depreciation allowance) by the section 179 expense deduction.

Line 1 Generally, the maximum section 179 expense deduction is $2,500,000 for section 179 property (including qualified section 179 real property) placed in service during the tax year beginning in 2025.

Tip: You can use Worksheet 1 to assist you in determining the amount to enter on line 1.

Recapture rule. If the section 179 property is not used predominantly (more than 50%) in your trade or business at any time before the end of the property’s recovery period, the

benefit of the section 179 expense deduction must be reported as “other income” on your return.

If any qualified section 179 disaster assistance property ceases to be used in the applicable federally declared disaster area in any year after you claim the increased section 179 expense deduction for that property, the benefit of the increased section 179 expense deduction must be reported as “other income” on your return. Similar rules apply if qualified Liberty Zone property ceases to be used in the Liberty Zone, if qualified section 179 GO Zone property ceases to be used in the GO Zone, if qualified section 179 Recovery Assistance property ceases to be used in the Recovery Assistance area, if qualified empowerment zone property ceases to be used in an empowerment zone by an enterprise zone business, or if qualified renewal property ceases to be used in a renewal community by a renewal community business in any year after you claim the increased section 179 expense deduction.

Line 2 Enter the total cost of all section 179 property you placed in service during the tax year (including the total cost of qualified real property that you elect to treat as section 179 property). Also, include the cost of the following.

Any listed property from Part V.
Any property placed in service by your spouse, even if you are filing a separate return. This includes qualified section 179 real property that your spouse made the election to treat as section 179 property for 2025.

Line 3 The amount of section 179 property for which you can make the election is limited to the maximum dollar amount on line 1. This amount is reduced if the cost of all section 179 property placed in service in 2025 is more than $4,000,000.

For a partnership, these limitations apply to the partnership and each partner. For an S corporation, these limitations apply to the S corporation and each shareholder. For a controlled group, all component members are treated as one taxpayer.

4 Instructions for Form 4562 (2025)

Line 5 If line 5 is zero, you cannot elect to expense any section 179 property. In this case, skip lines 6 through 11, enter zero on line 12, and enter the carryover of any disallowed deduction from 2024 (which does not include amounts attributable to qualified section 179 real property) on line 13.

See Special rules for qualified section 179 real property , earlier.

If you are married filing separately, you and your spouse must allocate the dollar limitation for the tax year. To do so, multiply the total limitation that you would otherwise enter on line 5 by 50% (0.50), unless you both elect a different allocation. If you both elect a different allocation, multiply the total limitation by the percentage elected. The sum of the percentages you and your spouse elect must equal 100%.

Do not enter on line 5 more than your share of the total dollar limitation.

Line 6 Do not include any listed property on line 6. Enter the elected section 179 cost of listed property in column (i) of line 26.

Column (a)—Description of property. Enter a brief description of the property you elect to expense (for example, truck, office furniture, qualified improvement property, roof, etc.).

Column (b)—Cost (business use only). Enter the cost of the property. If you acquired the property through a trade-in, do not include any carryover basis of the property traded in. Include only the excess of the cost of the property over the value of the property traded in.

Column (c)—Elected cost. Enter the amount you elect to expense. You can depreciate the amount you do not expense. See the line 19 and line 20 instructions.

To report your share of a section 179 expense deduction from a partnership or an S corporation, enter “from Schedule K-1 (Form 1065)” or “from Schedule K-1 (Form 1120-S)” across columns (a) and (b).

Line 7 Enter the amount that you elected to expense for listed property (defined earlier) on line 29 here. For more information, see Part V—Listed Property , later.

Line 10 The carryover of disallowed deduction from 2024 is the amount of section 179 property, if any, you elected to expense in previous years that was not allowed as a deduction because of the business income limitation. If you filed Form 4562 for 2024, enter the amount from line 13 of your 2024 Form 4562.

Line 11 The total cost you can deduct is limited to your taxable income from the active conduct of a trade or business during the year. You are considered to actively conduct a trade or business only if you meaningfully participate in its management or operations. A mere passive investor is not considered to actively conduct a trade or business.

Note: If you have to apply another Code section that has a limitation based on taxable income, see Pub. 946 for rules on how to apply the business income limitation for the section 179 expense deduction.

Individuals. Enter the smaller of line 5 or the total taxable income from any trade or business you actively conducted, computed without regard to any section 179 expense deduction, the deduction for one-half of self-employment taxes under section 164(f), or any net operating loss deduction. Also, include all wages, salaries, tips, and other compensation you earned as an employee (from Form 1040, line 1a). Do not reduce this amount by unreimbursed employee business expenses. If you are married filing a joint return, combine the total taxable incomes for you and your spouse.

Partnerships. Enter the smaller of line 5 or the partnership’s total items of income and expense, described in section 702(a), from any trade or business the partnership actively conducted (other than credits, tax-exempt income, the section 179 expense deduction, and guaranteed payments under section 707(c)).

S corporations. Enter the smaller of line 5 or the corporation’s total items of income and expense described in section 1366(a) from any trade or business the corporation actively conducted (other than credits, tax-exempt income, the section 179 expense deduction, and the deduction for compensation paid to the corporation’s shareholder-employees).

Corporations other than S corporations. Enter the smaller of line 5 or the corporation’s taxable income before the section 179 expense deduction, net operating loss deduction, and special deductions (excluding items not derived from a trade or business actively conducted by the corporation).

Line 12 The limitations on lines 5 and 11 apply to the taxpayer, and not to each separate business or activity. Therefore, if you have more than one business or activity, you may allocate your allowable section 179 expense deduction among them.

To do so, enter “Summary” at the top of Part I of the separate Form 4562 you are completing for the total amounts from all businesses or activities. Do not complete the rest of that form. On line 12 of the Form 4562 you prepare for each separate business or activity, enter the amount allocated to the business or activity from the “Summary.” No other entry is required in Part I of the separate Form 4562 prepared for each business or activity.