This worksheet shows the information used in figuring the depreciation allowed on assets used in Henry's business. Henry figures the depreciation using the modified accelerated cost recovery system (MACRS). He also chooses to deduct $24,000 of the cost of the tow truck purchased and placed in service in his trade or business during the year. This is the "section 179 deduction." He also chooses to deduct the special depreciation allowance for the properties that qualify. The allowance is an additional 30% of the property's cost or other basis (after subtracting the section 179 deduction). Depreciation, the section 179 deduction, and the special depreciation allowance are discussed in Publication 946. Henry uses the information in the worksheet to complete Form 4562, Depreciation and Amortization (pdf).
Information courtesy of the Internal Revenue Service.
Sample Record System:
Daily Summary of Cash Receipts
Monthly Summary of Cash Receipts
Check Disbursements Journal
Employee Compensation Record