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2020 IA 4562A
Iowa Depreciation Adjustment Schedule
tax.iowa.gov
Name(s): _______________________________________________________________________________ SSN or FEIN: _______________________________

Pass-through entity (if applicable): ___________________________________________________________ Pass-through FEIN: __________________________

Part I - Computation of Iowa depreciation adjustment. See instructions before completing.
A. Description B. Date C. Life of D. Cost or E. Federal 179 F. Federal G. Accumulated H. Iowa 179 I. MACRS Iowa J. Accumulated
of property placed in asset other expense depreciation federal expense depreciation Iowa
service basis deduction deduction depreciation deduction depreciation

Total amounts in columns E, F, H (see instructions), and I

Part II - Disposition adjustments
If you have disposed of property and an Iowa depreciation adjustment was applied to this property, continue with Part II; otherwise, skip to Part III.
A. Description of B. Date placed in service C. Date sold or disposed D. Total Iowa depreciation E. Total federal F. Adjustment (subtract
property sold or MM/DD/YY MM/DD/YY + sec. 179 expense + depreciation + sec. 179 column E from column D)
disposed like-kind adjustment expense taken
taken

Total amounts in column F
Part III -Summary of adjustments to net income
1. Enter the sum of amounts from Part I, columns E and F ................................ 1. ____________________________________________
2. Enter the sum of amounts from Part I, columns H and I ................................. 2. ____________________________________________
3. Adjustment to depreciation. Subtract line 2 from line 1 .................................. 3. ____________________________________________
4. Enter the amount from Part II, column F ......................................................... 4. ____________________________________________
5. Add lines 3 and 4. This amount must be reported on your tax return.
See table in Part III of the instructions for specific form and line references .. 5. ____________________________________________

Include this form with your Iowa tax return.

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                                                                                                           2020 IA 4562B 
                                                                    Iowa Accumulated Depreciation Adjustment Schedule 
                                                                                                           tax.iowa.gov 

Name(s):  ______________________________________________________________ SSN or FEIN: _________________________ 

Part I – Accumulated depreciation adjustments: 

Note: Use this form to record the cumulative effect of depreciation adjustments computed on form IA 4562A. 

                    IA 4562A 
               adjustment 
Tax period     amount from                             Instructions to 4562B Part I 
ending date    Part III, Line 5   Balance 
                                                       Tax Period Ending Date: Start with the tax period that you first made 
                                                       an adjustment for depreciation or section 179 expensing on the Iowa 
                                                       return.  Continue  entering  each  subsequent  tax  period  up  to,  and 
                                                       including, the current period. 
                                                       IA 4562A Adjustment: Enter the amount added/deducted on the Iowa 
                                                       return for each tax period. This should be the amount entered in Part 
                                                       III, line 5 of the IA 4562A. Enter negative numbers in parenthesis. 
                                                       Place an asterisk (*) after the tax period if the IA 4562A adjustment 
                                                       was changed from the amount originally claimed. You must provide 
                                                       copies of  the  prior  tax  periods’ IA  4562As  if  requested  by  the 
                                                       Department.  Failure  to  provide  copies  of  the  prior  tax  periods’ IA 
                                                       4562As will delay the processing of your return or cause the denial 
                                                       of your adjustment. Do not send copies of the asset listings that are 
                                                       required with the IA 4562A. 
                                                       Balance: The balance amount for the first tax period should be the 
                                                       same  as  the  amount  of the adjustment.  For  each  subsequent  tax 
                                                       period, the balance amount should be changed by the amount of that 
                                                       tax period’s IA 4562A adjustment. 

                                  Include this form with your Iowa tax return.

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2020 IA 4562B
Iowa Accumulated Depreciation Adjustment Schedule
tax.iowa.gov
Part II - Special election deduction and instructions:
Enter the amounts shown on your 2018 IA 4562A Part IV, lines 4a-4e in the appropriate boxes in the row labeled “2018 special election
deduction”. The amount you enter in each box in this row should be the same. If you did not make the special election in 2018, each box
should show 0. The amount entered in column f (2024) for this line must be 0.
Enter the amounts shown on your 2019 IA 4562A Part IV, lines 4a-4e in the appropriate boxes in the row labeled “2019 special election
deduction”. The amount you enter in each box in this row should be the same. If you did not make the special election in 2019, each box
should show 0. The amount entered in column a (2019) for this line must be 0.
Add the 2018 and 2019 amounts for each column and enter the result in the “Total” box for that column. This row shows the total special
election deduction amount you may claim for each tax year. Enter this amount on IA 4562A Part I, column H, in the applicable tax year. In
column A for that row write “Special Election”, in column B write the beginning or ending date of your 2020 tax year, leave columns C through
G for that row blank, and then follow all IA 4562A instructions, including the worksheet for column H on page 2.

a. 2019 b. 2020 c. 2021 d. 2022 e. 2023 f. 2024

2018 special
election deduction 0

2019 special
election deduction
0

Total

Example: XYZ, an eligible taxpayer, computed an excess section 179 expense of $100,000 for tax year 2018 on 2018 IA 4562A, Part IV, line
3. XYZ properly claimed the special election deduction, so XYZ must enter $20,000 ($100,000 x .20) in columns a through e of the first row
(2018 special election deduction) of the table above. For tax year 2019, XYZ computed an excess section 179 expense of $250,000 on 2019 IA
4562A, Part IV, line 3. XYZ properly claimed the special election deduction, so XYZ must enter $50,000 ($250,000 x .20) in columns b through
f of the second row (2019 special election deduction) of the table above. To compute the special election deduction allowable in 2019 XYZ will
enter the total shown for column a ($20,000) of the table above on the 2019 IA 4562A Part I, column H, writing “Special Election” in column A
for that row, writing the beginning or ending date of XYZ’s 2019 tax year in column B, and leaving columns C through G for that row blank. For
tax year 2020 XYZ’s special election deduction will be the total for column b ($70,000) of the table above.

Include this form with your Iowa tax return.

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                                                                                                 2020 IA 4562A Instructions, page 1 
                                            2020 IA  4562A        Instructions
This form must be completed if taxpayer:                            in a different basis for Iowa and federal tax purposes in the 
• Claimed bonus depreciation during the tax year on federal form    personal property received in the exchange. 
  4562, Depreciation and Amortization; federal form 2106,         • Placed a passenger vehicle in service during tax year 2018 and
  Employee Business Expenses; Schedule C, Profit or Loss from       claimed regular  first-year  federal depreciation in excess of
  Business; Schedule F, Profit or Loss from Farming, or any other   $3,560 for trucks and vans, or $3,160 for other passenger
  federal form where depreciation was deducted.                     vehicles.
• Claimed depreciation during the tax year on property and Iowa   • Claimed federal cost recovery  adjustments during tax year
  depreciation adjustments were made to that same property in       2018  resulting from federal Tax Cuts and  Jobs Act of 2017
  previous tax years.                                               sections 13202 (adjustments to computers as listed property),
  Note: See IA 1040 expanded instructions for a complete list of    13203  (modifications  to treatment of certain farm property),
  years in which depreciation adjustments were required.            13204 (applicable recovery period for real property), or 13205
• Disposed of property during the tax year, and Iowa depreciation   (use of alternative depreciation system  for electing farm
  adjustments were made to the property in previous tax years.      businesses).
• Claimed the federal section 179 expense in excess of $25,000    • Claimed certain federal cost recovery adjustments during tax
  for tax years beginning on or after January 1, 2003, but          year 2018 or 2019 resulting from the Taxpayer Certainty and
  beginning before January 1, 2006, and the taxpayer chose to       Disaster Tax Relief Act of 2019, Public Law 116-94. For more
  claim no more than $25,000 for Iowa tax purposes.                 information, see the Iowa nonconformity guidance available at
• Claimed the federal section 179 expense in excess of $133,000     tax.iowa.gov/iowa-nonconformity-taxpayer-certainty-and-
  for tax years beginning on or after January 1, 2009, but before   disaster-tax-relief-act-2019.
  January 1, 2010.                                                • Claimed federal cost recovery  adjustments during tax year
• Claimed 5-year depreciation on certain new farming machinery      2018 or 2019 resulting from CARES Act, Public Law 116-136,
  and equipment purchased in 2009.                                  section 2307 (Qualified Improvement Property). For more
• Placed  property used in a farming business in service after      information, see Iowa nonconformity guidance available at
  December 31, 2017, and before January 1, 2019, and used the       tax.iowa.gov/cares-conformity.
  200% declining balance method for  federal purposes.
                                                                  Part I 
  Taxpayers are required to use  the 150% declining  balance
                                                                  If a  taxpayer made a special election on  IA 4562A,  Part IV in a 
  method on such property for Iowa purposes.
                                                                  previous tax year, complete Part II of the 4562B before completing 
• Claimed the federal section 179 expense in excess of $25,000
                                                                  Part I of this 4562A. 
  for tax years beginning on or after January 1, 2016, but before
                                                                  List each item of property falling within the parameters listed above. 
  January 1, 2018.
                                                                  A separate schedule can be included listing all qualifying property. 
• Claimed the federal section 179 expense in excess of $70,000
                                                                  Grouping of assets by class is also permitted. For example, all 3-
  for tax years beginning on or after January 1, 2018, but before
                                                                  year assets or all 5-year assets, etc., may be grouped together. If 
  January 1, 2019.
                                                                  assets are grouped, the taxpayer is responsible to maintain all 
• Claimed the federal section 179 expense in excess of $100,000
                                                                  records necessary to support how each item was grouped.
  for tax years beginning on or after January 1, 2019, but before
  January 1, 2020.
• Claimed a like-kind exchange of personal property in tax years
  2018 or 2019 for Iowa tax purposes on IA 8824 which resulted
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2020 IA 4562A Instructions, page 2

Compute the amount of federal depreciation using the federal 1. Elected federal section 179 expense. Enter
depreciation method and the amount of Iowa depreciation using the your total elected federal section 179 expense
MACRS method taking into account any required nonconformity from federal 4562, Part I, line 9. ....................... ____________
adjustment. 2. Iowa section 179 expense carryover from
Column E: Enter the amount 179 expense deduction shown on 2019. Enter your total Iowa section 179
your federal return even if you are reporting income received on a expense carryforward calculated on line 8 of
2019 IA 1065 Schedule K-1, or IA 1120S Schedule K-1 .If you are the Column H worksheet in your 2019 IA 4562A
reporting information from a 2019 IA 1065 Schedule K-1, or IA instructions, if any. This amount may be
1120S Schedule K-1 disregard the amount shown on line 12(a) of different than any federal section 179 expense
the 1065 or line 11(a) on the 1120S in Column E for any section 179 carryforward you have because of Iowa
expense received from that entity. If any amount of your allowable nonconformity. If you do not have a different
federal section 179 deduction represents a carryforward amount Iowa section 179 carryforward from a previous
from a prior tax year, report that amount in column E on a separate year due to Iowa nonconformity, enter your
row, labeled as “section 179 carryforward” in column A. The amount federal carryforward amount from federal 4562,
listed in your column E total box must equal the amount on your line 10. ............................................................. ____________
federal 4562, line 12. 3. Tentative Iowa section 179 expense
Column H: The Iowa section 179 expense amount, including any deduction. Enter the sum of lines 1 and 2. ...... ____________
special election deductions, entered in Column H is limited to your 4. Special election deduction for 2020. Enter
business income in the same manner that the section 179 deduction the total amount from your 2020 IA 4562B Part
is limited for federal purposes. The following worksheet is provided II, column b here. ............................................. ____________
to assist you in properly calculating your Iowa section 179 expense, 5. Tentative Iowa section 179 expense and
applying the business income limitation, and calculating your special election deduction. Add lines 3 and 4
carryover to future years, if any. Before beginning this worksheet, and enter the result here. This is your tentative
your Column H should only include your total elected federal section Iowa Section 179 expense and special election
179 expense from your federal 4562, Part I, line 9, and any deduction. ......................................................... ____________
allowable special election deduction from Part II of this form. Do not 6. Business income limitation. Enter your
include this worksheet with your return, but keep it for your records. business income limitation from 2020 federal
You are responsible for providing documentation of any carryover Form 4562, line 11. ........................................... ____________
at the Department’s request. For more information on section 179 7. Allowable 2020 Iowa section 179 expense
expensing, see Iowa administrative rules 701-40.65, 53.23, and and special election deduction. Enter the
59.24. smaller of the amounts entered on line 5 or 6.
This is your allowable 2020 Iowa section 179
expense and special election deduction.
Carefully follow the instructions below for
reconciling your column H total, then proceed to
line 8. ................................................................ ____________

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                                                                                                            2020 IA 4562A Instructions, page 3 
   Reconciling this worksheet to your column H total:                         Reporting Part I Column Totals: 
If your allowable deduction calculated on line 7 of this worksheet            Total the amount of the federal depreciation in columns E and F and 
includes a section 179 carryforward amount from prior years (see              the Iowa depreciation in columns H and I and enter on Part III of the 
line 2 of this worksheet), you may have a section 179 carryforward            form. The column H total may be less than the sum of the amounts 
deduction  to report in Column H.  To calculate the  reportable               shown in column H if the business income limitation applied. The 
carryforward deduction, add the amounts entered on lines 1 and 4              accumulated depreciation amount in columns G and J should 
of this worksheet, then subtract that sum from the amount on line 7           include the total amounts of depreciation and section 179 expense 
of this worksheet.  If zero or less, you have no section 179                  for the life of the asset(s). 
carryforward  deduction to report this year.  If greater than zero, 
                                                                              Part II 
report that amount in column H of the same row you reported your 
                                                                              If you have not sold or disposed of property for which an Iowa 
federal section 179 carryforward. If you did not report a federal 
                                                                              depreciation adjustment was applied, you may skip Part II of this 
carryforward amount,  report the amount on a separate row in 
                                                                              form. Dispositions of personal property given up in a qualifying Iowa 
Column H,  write “section 179 carryforward” in column A of the 
                                                                              like-kind exchange on IA 8824 should not be included in Part II of 
corresponding row, write the beginning or ending date of your 2020 
                                                                              this form. 
tax year in column B, and leave the remaining columns in that row 
                                                                              For each item of property listed, determine the difference between 
blank.  
                                                                              federal depreciation and Iowa MACRS depreciation used in the 
If lines 6 and 7 of this worksheet are the same amount (in other              computation of federal and Iowa taxable income in prior and 
words, you were subject to the business income limitation), reduce            current years. 
the amount in your column H total box to equal the amount on line             If you sold or disposed of property this year, and the Iowa 
7 of this worksheet, even if the amount in that Column H total box            depreciation adjustment was applied to the property in any prior 
ends up being less than the sum of the amounts shown in column                years, or you reported a like-kind exchange for Iowa but not for 
H.                                                                            federal purposes for the property in tax years 2017, 2018, or 2019, 
                                                                              you must make the applicable depreciation catch-up adjustment to 
Make sure the amount listed in your column H total box equals the 
                                                                              adjust the basis of the property for Iowa purposes. A separate 
amount on line 7 of this worksheet before you complete the IA 
                                                                              schedule can be attached listing all qualifying sales or 
4562A, Part III. 
                                                                              dispositions, and grouping of assets by class is also permitted as 
8. Iowa section 179 expense carryforward  to                                  described in Part I. Total the amount in column F and enter on 
   2021. Add lines 1, 2, and 4, then subtract that                            Part III of the form. 
   sum from the amount on line 7, and enter the                               If you dispose of any personal property for which you elected or 
   result here. If zero or less, enter zero. This is                          were required to use like-kind exchange treatment for Iowa but not 
   your Iowa section 179 expense carryforward                                 for federal purposes in tax years 2017, 2018, or 2019, include the 
   amount to 2021 which may be used to complete                               amount of nonconformity adjustment attributable to the property 
   this worksheet next year. ..................................  ___________  disposed of from IA 8824, line 25, from the year of the like-kind 
                                                                              exchange in the total Iowa depreciation and 179 expensing taken 
                                                                              on the asset in Part II, column D. Negative amounts from the IA 
                                                                              8824, line 25, should be included here as a positive amount. 
                                                                              Positive amounts from the IA 8824, line 25, should be included 
                                                                              here as a negative amount. 

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                                                                 2020 IA 4562A Instructions, page 4 

Part III 
Compute the net adjustment using Part I  and Part II. Enter the 
amount from line 5 on the applicable Iowa form as noted below. 

Iowa 
Form:    Enter positive amounts from  Enter negative amounts 
         line 5 on:               from line 5 on: 

         Other income, line 14,   Other income, line 14,  
1040     code b                   code b 

1041     Other income, line 8     Other income, line 8 

1065     Part III, line 3         Part III, line 6 

         Schedule A, depreciation Schedule A, depreciation 
1120 
         adj., line 8             adj., line 8 

1120S    Part III, line 3         Part III, line 7 

1120F    Schedule A, line 5       Schedule D, line 7 

Continue to form IA 4562B, Part I, Iowa Accumulated Depreciation 
Adjustment Schedule. 

                                                                 41-105g (10/12/20)

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