What Form 4562 does
Form 4562, Depreciation and Amortization, is where you report depreciation deductions, any Section 179 expensing, and bonus depreciation. For rental property, the depreciation total ultimately flows onto Schedule E, which reports rental income and expenses.
When you have to file it
You must file Form 4562 in the first year you place an asset in service, and in any year you add a new depreciable asset, claim Section 179, or claim bonus depreciation. In later years with no new assets, you often do not need to attach it again — the depreciation still appears on Schedule E.
Listed property and records
Part V covers listed property such as vehicles used for the rental business, which carries stricter substantiation rules. Keep an asset schedule showing each item, its basis, placed-in-service date, method, and accumulated depreciation — you will need it at sale to compute recapture.
Frequently asked questions
Do I file Form 4562 every year?
Only in years you place new assets in service or claim Section 179 or bonus depreciation. Otherwise depreciation continues on Schedule E without re-attaching it.
Where does the depreciation go?
The total from Form 4562 flows to Schedule E as a rental expense against your rental income.
What if I forgot to depreciate?
You may be able to catch up missed depreciation with Form 3115, since the IRS treats not claiming allowable depreciation as an accounting method issue.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.