Depreciation Worksheet The worksheet shows the information needed to figure depreciationon each item of property and the total depreciation for 1999. Thecorporation's books and records support the information on theworksheet. There is an account for each item of property. Theseaccounts show the following information. The date of acquisition. A description of the property. The cost or other basis of the property. The amount of section 179 deduction claimed. The MACRS depreciation method used. The property class and recovery period. The depreciation deducted each year. For information on business recordkeeping, see Publication 583,Starting a Business and Keeping Records. On February 2, 1996, the corporation bought and placed in servicethe building used as its place of business for $65,000. It also boughtand placed in service on that date the following property. A desk and chair for $600. Refrigeration equipment for $4500. Work tables for $1200. A cash register for $270. The building is nonresidential real property. Fields of Flowersdepreciates it using the straight line method and mid-month conventionover a recovery period of 39 years. It uses Table A-7a. The desk and chair are 7-year property. The refrigerationequipment, work tables, and cash register are 5-year property. Becauseno property was placed in service in the last quarter of the tax year,the corporation uses the half-year convention for this property. Ituses Table A-1. It claimed a section 179 deduction for the full costof the desk and chair. It takes no depreciation for this property. In 1997, Fields of Flowers bought and placed in service thefollowing property. On April 16, a delivery truck for $31,000. On July 3, typewriter for $300 It chose to use the 150% declining balance method over the ADSrecovery period for these property items. The recovery period for thetruck is 5 years. The recovery period for the typewriter is 6 years.It applied the half-year convention for both items and used TableA-14. It claimed a $18,000 section 179 deduction for the truck. Thebasis of the truck for depreciation is $13,000 ($31,000 -18,000). The basis for depreciation of the typewriter is its cost of$300. In 1999, Fields of Flowers bought and placed in service thefollowing property. On June 21, a computer for $3,000. On September 9, file cabinets for $475. On November 1, store counters for $1,870. On November 16, a USA 280F van for $24,800. The total bases of all property placed in service in 1999 is$30,145. The total of the bases of the counter and the van, placed inservice during the last three months of the corporation's tax year, is$26,670. This amount is more than 40% of the total bases of allproperty placed in service during 1999. The corporation must apply themid-quarter convention for all four items. The computer is 5-year property for which the corporation usesTable A-3. The van is 5-year property for which it uses Table A-5. Thecorporation elects to claim a section 179 deduction of $19,000 for thevan. The basis for depreciation of the van is $5,800 ($24,800 -$19,000). Depreciation Worksheet, Form 4562 Form 4562, page 1 Form 4562, page 2 The file cabinets are 7-year property. The counters are 5-yearproperty. The corporation elects to use the ADS method for theseproperty items. The recovery period is 10 years for the cabinets and 9years for the counters. The corporation uses Table A-11 for the filecabinets and Table A-12 for the store counters.