U.S. · Tax forms
Form 4562 line 14: special depreciation.
The extra first-year write-off for qualified property, and the rates the 2025 instructions give.
Line 14 is the special depreciation allowance, an additional first-year deduction for qualified property. For qualified property acquired after January 19, 2025, the 2025 instructions give a 100% allowance, with an election for a 40% allowance (60% for property with a long production period and certain aircraft) for the first tax year ending after January 19, 2025. Property acquired after September 27, 2017 and before January 20, 2025 is limited to 40% (60% for those special cases). You take it after any section 179 deduction and before regular MACRS depreciation.
Look up a rate
Result
Line 14 rates in the 2025 instructions
| Item | Meaning | Where it goes (per the IRS instructions) |
|---|---|---|
| 100% | Qualified property acquired after January 19, 2025 | Default rate. Election to take 40% instead (60% for long production period property and certain aircraft) in the first tax year ending after January 19, 2025. |
| 40% | Qualified property acquired after September 27, 2017 and before January 20, 2025 | Limited to 40% of depreciable basis (60% for long production period property and certain aircraft). Also acquired before January 20, 2025 and placed in service before January 1, 2026. |
| 100% plants | Specified plants planted or grafted after January 19, 2025 | Elect 100% (or 40% for the first tax year ending after January 19, 2025) by attaching a statement to a timely filed return electing section 168(k)(5). |
| 40% plants | Specified plants planted or grafted after December 31, 2024 and before January 20, 2025 | Elect 40% by attaching the same kind of statement. |
| 50% | Qualified reuse and recycling property placed in service after August 31, 2008 | Subject to the tests in the instructions, including MACRS, useful life of at least 5 years, and original use beginning with you. |
What counts as qualified property
The instructions list tangible property depreciated under MACRS with a recovery period of 20 years or less, computer software under section 167(f)(1), water utility property, and qualified film, television, live theatrical and (for production beginning in tax years ending after July 4, 2025) sound recording productions. It can be new or certain used property. The instructions also describe qualified production property and say to see section 168(k) and Pub. 946.
How to figure it
Multiply the depreciable basis by the applicable percentage. Depreciable basis is the business or investment part of cost or other basis less credits and deductions allocable to the property, such as the section 179 deduction. If you take the allowance, you reduce the amount on which you figure regular depreciation or amortization, and you have no AMT adjustment for depreciation on that property.
Election out
You can elect, for any class of property, to take no special depreciation allowance for all property in that class placed in service that year. Attach a statement to your timely filed return, including extensions, naming the class. If you filed on time without the election you can still make it by an amended return within 6 months of the due date, excluding extensions, writing “Filed pursuant to section 301.9100-2.” It cannot be revoked without IRS consent.
Worked example
Marco buys $30,000 of 5-year equipment in February 2025 and takes no section 179 deduction. The property is qualified and acquired after January 19, 2025, so line 14 can be 100%, or $30,000, leaving nothing for regular MACRS on that equipment. If he instead elects the 40% rate, line 14 is $12,000 and the other $18,000 is depreciated in Part III.
Recapture
On a later sale, gain is generally recaptured as ordinary income up to the depreciation allowed or allowable, including the special depreciation allowance.
More IRS form line pages
Other pages in this set: Form 8949 Boxes A-L, Form 5329 Part III, Form 4562 Line 12, Form 4562 Convention Codes, Form 5329 Line 52, Form 4562 Line 19, Form 4562 Line 42, Form 6251 Line 2i, Form 6251 Line 2c, Form 6251 Line 2l. The 1099-R box 7 lookup and W-2 box 12 lookup cover the same kind of question for those forms.
Sources
- Instructions for Form 4562 (2025): the sections for the lines and boxes on this page. Read November 2, 2026.
IRS page last reviewed April 30, 2026. Tax year 2025 edition. Line numbers, dollar limits and dates are those printed in the 2025 instructions and can change. Names in worked examples are made up.
Frequently asked questions
What goes on line 14 of Form 4562?
The special depreciation allowance for qualified property placed in service during the tax year, taken after any section 179 deduction and before regular MACRS depreciation.
What is the special depreciation rate for property acquired after January 19, 2025?
The 2025 instructions give 100%, with an election for 40% (60% for property with a long production period and certain aircraft) in the first tax year ending after January 19, 2025.
What rate applies to property acquired before January 20, 2025?
For qualified property acquired after September 27, 2017 and before January 20, 2025, the instructions limit the allowance to 40% (60% for long production period property and certain aircraft).
Can I opt out of the special depreciation allowance?
Yes, by class of property, with a statement attached to your timely filed return. The election cannot be revoked without IRS consent.
Does line 14 affect AMT?
The instructions say that if you take the allowance you have no AMT adjustment for depreciation on that property, and that electing out also avoids an AMT depreciation adjustment for the year.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.