The Depreciation Spreadsheet Template includes 3 tabs:
Asset sheet
Depreciation Summary template sheet
Note
Download format:
Excel spreadsheet
Product Type:
Digital download
What is included in the download?
2 Excel spreadsheets are included in the download:
Depreciation Summary Spreadsheet
Depreciation Summary Spreadsheet – Example
Why should you use the depreciation spreadsheet template?
The depreciation spreadsheet allows you to record all your assets purchased during a tax year and depreciate them in one spreadsheet.
You would be able to track your long-term assets together as well as the depreciation deduction claimed on them for your business record.
You would be able to know when you are down claiming depreciation on any asset in your business.
If you do not use accounting software in your business, this depreciation template could be helpful tracking your long-term business assets.
If you do not use tax software to file your business tax return, the depreciation spreadsheet is a very helpful tool you can use to calculate the depreciation deduction to claim on Form 4562 Depreciation and Amortization.
Although, we recommend you file your tax return using tax software to save time. In which case this depreciation spreadsheet may not be needed as the tax software will calculate the depreciation deduction for you. However, using the depreciation spreadsheet to keep a record of your assets and when you place them in service will help you enter the specifics of each asset in the tax software faster.
How to use the depreciation spreadsheet?
When you purchased and placed assets in service, you complete Asset tab.
You copy the same information to the Depreciation Summary template sheet.
Toward the end of the year, once you are sure about quarter 4 whether you would place assets in service in the last quarter, you could start completing the remaining columns of the depreciation summary template sheet.
You would need Appendix A and B of IRS publication 946 How to Depreciate Property to find the recovery period and the depreciation rate.
Once you entered the rate, the depreciation summary spreadsheet would calculate the depreciation deduction for each recovery period. The total depreciation deduction to claim by tax year would be above the table and available.
The depreciation spreadsheet does not show you how to depreciate an asset.
To find out more about how to depreciate an asset, would you please check our video playlist: 2020 Form 4562 Depreciation and Amortization: https://youtube.com/playlist?list=PLaot4wvPcjCWHy6ilkc-YVUX6O18Rn7EH
Link to IRS Publication 946 How to Depreciate Property can be found on our website:
Click on Federal Tax Forms and Instructions Links. Search “Publication 946 How to Depreciate Property”.
You could also search on www.irs.gov for Publication 946.
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