Jeremy opened a machine shop in 2024. He placed the following assets in service on June 7, 2024:

Question

Milling machine
Drill press
Desk
File cabinet
The assets are all used 100% for business and he will depreciate the assets using MACRS depreciation. Jeremy is not claiming the Section 179 deduction, the special depreciation allowance, or the de minimis election. Where on the Form 4562, Depreciation and Amortization (Including Information on Listed Property), should the assets be reported?
Part III, Section B.
Part V, Section A.
Part V, Section B.
Part VI.

Answer 1

In the scenario described, Jeremy should report the assets on Part III, Section B of Form 4562. This section is specifically for reporting MACRS depreciation for property placed in service during the year, which aligns with Jeremy's situation as he is using MACRS and not claiming any special allowances.

Therefore, the correct answer is Part III, Section B.