Page 194 - Individual Forms & Instructions Guide

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• Multiply the business standard fees you paid to facilitate the sale of that tions for Form 4562 and Pub. 946 to fig-
mileage rate from January 1, 2022, to property. ure the amount to enter on line 13.
June 30, 2022, by 58.5 cents a mile; Note. A dealer in property is a person When to attach Form 4562. You must
• Multiply the business standard who regularly sells property in the ordi- complete and attach Form 4562 only if
mileage rate from July 1, 2022, to De- nary course of their trade or business. you are claiming:
cember 31, 2022, by 62.5 cents a mile; For more information on the capitali- • Depreciation on property placed in
and zation of commissions and fees, see the service during 2022;
• Add to this amount your parking examples under Regulations section • Depreciation on listed property
fees and tolls; and 1.263(a)-1(e). (defined later), regardless of the date it
• Enter the total on line 9. Do not was placed in service; or
deduct depreciation, rent or lease pay- Line 11 • A section 179 expense deduction.
ments, or your actual operating expen- If you acquired depreciable property
ses. Enter the total cost of contract labor for for the first time in 2022, see Pub. 946.
the tax year. Contract labor includes
If you deduct actual expenses: payments to persons you do not treat as Listed property. Listed property gener-
• Include on line 9 the business por- employees (for example, independent ally includes but is not limited to:
tion of expenses for gasoline, oil, re- contractors) for services performed for • Passenger automobiles weighing
pairs, insurance, license plates, etc.; and your trade or business. Do not include 6,000 pounds or less;
• Show depreciation on line 13 and contract labor deducted elsewhere on • Any other property used for trans-
rent or lease payments on line 20a. your return, such as contract labor in- portation if the nature of the property
cludible on line 17, 21, 26, or 37. Also, lends itself to personal use, such as mo-
For details, see chapter 4 of Pub. 463. torcycles, pickup trucks, etc.; and
do not include salaries and wages paid
Information on your vehicle. If you to your employees; instead, see Line 26, • Any property used for entertain-
claim any car and truck expenses, you later. ment or recreational purposes (such as
must provide certain information on the photographic, phonographic, communi-
use of your vehicle by completing one You must file Form 1099-NEC to re- cation, and video recording equipment).
of the following. port contract labor payments of $600 or Exception. Listed property does not
1. Complete Schedule C, Part IV, if more during the year. See the Instruc- include photographic, phonographic,
(a) you are claiming the standard mile- tions for Forms 1099-MISC and communication, or video equipment
age rate, you lease your vehicle, or your 1099-NEC for details. used exclusively in your trade or busi-
vehicle is fully depreciated; and (b) you Line 12 ness or at your regular business estab-
are not required to file Form 4562 for lishment. For purposes of this exception,
any other reason. If you used more than Enter your deduction for depletion on a portion of your home is treated as a
one vehicle during the year, attach a this line. If you have timber depletion, regular business establishment only if
statement with the information requested attach Form T (Timber). See chapter 9 that portion meets the requirements un-
in Schedule C, Part IV, for each addi- of Pub. 535 for details. der section 280A(c)(1) for deducting ex-
tional vehicle. penses for the business use of your
2. Complete Form 4562, Part V, if Line 13 home.
you are claiming depreciation on your Recapture. See Line 6, earlier, if the
vehicle or you are required to file Form Depreciation and section 179 expense business use percentage of any listed
4562 for any other reason (see Line 13, deduction. Depreciation is the annual property dropped to 50% or less in 2022.
later). deduction allowed to recover the cost or
other basis of business or investment Line 14
Line 10 property having a useful life substantial-
ly beyond the tax year. You can also de- Deduct contributions to employee bene-
Enter the total commissions and fees for preciate improvements made to leased fit programs that are not an incidental
the tax year. Do not include commis- business property. However, stock in part of a pension or profit-sharing plan
sions or fees that are capitalized or de- trade, inventories, and land are not de- included on line 19. Examples are acci-
ducted elsewhere on your return.
preciable. Depreciation starts when you dent and health plans, group-term life
You must file Form 1099-NEC to re- first use the property in your business or insurance, and dependent care assistance
port certain commissions and fees of for the production of income. It ends programs. If you made contributions on
$600 or more during the year. See the when you take the property out of serv- your behalf as a self-employed person to
Instructions for Forms 1099-MISC and ice, deduct all your depreciable cost or a dependent care assistance program,
1099-NEC for details. other basis, or no longer use the property complete Form 2441, Parts I and III, to
in your business or for the production of figure your deductible contributions to
Sales of property. Generally, commis- income. You can also elect under sec- that program.
sions and other fees paid to facilitate the tion 179 to expense part or all of the cost
sale of property must be capitalized. of certain property you bought in 2022 You cannot deduct contributions you
However, if you are a dealer in property, for use in your business. See the Instruc- made on your behalf as a self-employed
enter on line 10 the commissions and person for group-term life insurance.

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