Form 4562 changes for 2025, and what the 2026 draft adds

• Lines 19h and 20e (new): MACRS depreciation for 50-year property under GDS and ADS.
• Line 23 splits into 23a and 23b: basis from interest capitalized under section 263A(f), and other costs capitalized under section 263A.
• Line 24c (new): a box for clients who own, lease or charter an aircraft they depreciate.

• Section 179: $2,500,000, reduced dollar for dollar once property placed in service passes $4,000,000; SUVs $31,300.
• Bonus for property acquired before January 20, 2025 and placed in service in 2025: 40% (60% for long production period property and certain aircraft).
• Bonus for property acquired after January 19, 2025: 100%, with an election to use 40% (or 60%) for the first tax year ending after that date.
• Qualified production property under new section 168(n): 100% if placed in service after July 4, 2025 and construction began, or it was acquired, after January 19, 2025; claimed in Part II, line 14.
• Solar and wind property that begins construction after 2024 is no longer 5-year property.
• Domestic R&E under section 174A: deduct currently, or capitalize over at least 60 months or over 10 years; foreign R&E stays at 15 years.

The IRS draft 2026 Form 4562 (created May 29, 2026) splits line 14, a single line on the 2025 form, into 14a to 14d. Line 14b covers fruit and nut plants under section 168(k)(5), 14c qualified reuse and recycle property under section 168(m), and 14d qualified production property under section 168(n), with a statement attached. Section B gains line 19k for qualified production property on a 39-year MM S/L recovery, and line 22 now totals lines 14a through 14d.

For tax years beginning in 2026, the IRS has published a Section 179 limit of $2,560,000, phasing out from $4,090,000, and an SUV cap of $32,000.

Ask for the purchase contract or order date for anything bought around January 2025. The HelloBooks fixed asset register keeps each asset with its purchase invoice and depreciation schedule, so the acquisition evidence is on file when you sort assets between the 40% and 100% rules.