Introduction — 2025 Publ 946 (PDF)

You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction. You can elect the section 179 deduction instead of recovering the cost by taking depreciation deductions.

Caution: Estates and trusts cannot elect the section 179 deduction. This chapter explains what property does and does not qualify for the section 179 deduction, what limits apply to the deduction (including special rules for partnerships and corporations), and how to elect it. It also explains when and how to recapture the deduction.

14 Chapter 2 Electing the Section 179 Deduction Publication 946 (2025)

Table 1-1.

Purpose of Form 4562

This table describes the purpose of the various parts of Form 4562. For more information, see Form 4562 and its instructions.

Part	Purpose
I	• Electing the section 179 deduction • Figuring the maximum section 179 deduction for the current year • Figuring any section 179 deduction carryover to the next year
II	• Reporting the special depreciation allowance for property (other than listed property) placed in service during the tax year • Reporting depreciation deductions on property being depreciated under any method other than MACRS
III	• Reporting MACRS depreciation deductions for property placed in service before this year • Reporting MACRS depreciation deductions for property (other than listed property) placed in service during the current year
IV	• Summarizing other parts
V	• Reporting the special depreciation allowance for automobiles and other listed property • Reporting MACRS depreciation on automobiles and other listed property • Reporting the section 179 cost elected for automobiles and other listed property • Reporting information on the use of automobiles and other transportation vehicles
VI	• Reporting amortization deductions

Useful Items You may want to see:

Publication

537

544

537 Installment Sales

544 Sales and Other Dispositions of Assets

Form (and Instructions)

4562

4797

4562 Depreciation and Amortization

4797 Sales of Business Property

See How To Get Tax Help at the end of this publication for information about getting publications and forms.