U.S. · Tax forms
Form 4797 line 22, depreciation allowed or allowable.
The two-step total of prior deductions and basis reductions, including section 179.
Line 22 is the total of the depreciation, amortization, depletion and similar deductions allowed or allowable on the property, figured in two steps: add the deductions and basis reductions the instructions list (Step 1), then subtract the recapture amounts they list (Step 2). Line 23, adjusted basis, is line 21 minus line 22.
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Result
The two steps for line 22
| Item | Meaning | What the IRS says |
|---|---|---|
| Depreciation and amortization | Step 1: add | Deductions allowed or allowable for depreciation (including any special depreciation allowance), amortization, depletion, or preproductive expenses. |
| Section 179 | Step 1: add | The section 179 expense deduction. |
| Commercial revitalization | Step 1: add | The commercial revitalization deduction for buildings placed in service before 2010. |
| Clean-fuel property | Step 1: add | The deduction for qualified clean-fuel vehicle property or refueling property. |
| Section 179D | Step 1: add | Any applicable deduction for qualified energy efficient commercial building property. See section 179D. |
| Section 179 recapture | Step 2: subtract | Any section 179 or 280F(b)(2) recapture amount included in gross income in a prior tax year because the business use of the property decreased to 50% or less. |
| Investment credit recapture | Step 2: subtract | Any investment credit recapture amount if the basis of the property was reduced in the tax year the property was placed in service under section 50(c)(1) (or the corresponding provision of prior law). |
| Qualified disaster expense recapture | Step 2: subtract | Any qualified disaster expense recapture. |
| Another asset's depreciation | May be included | You may have to include depreciation allowed or allowable on another asset (and refigure the basis amount for line 21) if you use its adjusted basis in determining the adjusted basis of the property described on line 19. |
Allowed or allowable
The line asks for depreciation allowed or allowable, not only what you claimed. Pub. 544, chapter 3, is the IRS reference the instructions give for amounts recaptured as depreciation allowed or allowable.
The step lists are partial
Both lists in the instructions are introduced with “such as the following,” so they are examples, not a complete catalogue. Step 1 also covers basis reductions for credits such as the qualified plug-in electric or qualified electric vehicle credit and the employer-provided childcare facility credit; Step 2 covers the matching basis increases when those credits are recaptured.
Where line 22 leads
Line 23 (adjusted basis) is line 21 minus line 22, and line 24 (total gain) is line 20 minus line 23. For section 1245 property, line 25a repeats the depreciation from line 22 and line 25b takes the smaller of line 24 or line 25a.
Worked example
Made-up numbers. A machine cost $84,000 including selling expenses (line 21). Over the years you took $45,000 of regular depreciation and a $7,000 section 179 deduction; none of the Step 2 recapture items apply. Line 22 is $52,000, so line 23 is $84,000 − $52,000 = $32,000. With a gross sales price of $100,000 on line 20, line 24 is $68,000.
More line pages in this set
Related lines: Form 4797 Line 21, Form 4797 Line 26a.
Sources
- Instructions for Form 4797 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 4797 (Sales of Business Property): the printed line wording and arithmetic on the form. Read November 2, 2026.
Instructions for Form 4797, 2025 edition. The line labels were read from the Form 4797 (2025) PDF the IRS had posted on the date read. Line numbers can shift between years, so check them against the form for your tax year. Examples marked made-up use invented figures; the others reproduce the IRS’s own examples.
Frequently asked questions
What goes on Form 4797 line 22?
Depreciation (or depletion) allowed or allowable on the property, figured by adding the Step 1 deductions and basis reductions and subtracting the Step 2 recapture amounts in the instructions.
Does line 22 include the section 179 deduction?
Yes. The section 179 expense deduction is a Step 1 item.
What is subtracted in Step 2?
Amounts such as section 179 or 280F(b)(2) recapture included in gross income in a prior year, investment credit recapture, and other recapture or basis increases listed in the instructions.
How does line 22 relate to line 23?
Line 23 is the adjusted basis: subtract line 22 from line 21.
Where can I read more on depreciation recapture?
The instructions point to Pub. 544, including chapter 3 for amounts recaptured as depreciation allowed or allowable.
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. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.