To claim depreciation on Schedule C in TaxWise, follow these steps:
Step 1: Open the Tax Return
Select the client’s return and navigate to Schedule C (Profit or Loss from Business).
Step 2: Access Form 4562 (Depreciation and Amortization)
On Sch C Pg 1, use the gray triangle on Line 13 (Depreciation) to link and start the depreciation entry process.
Use the paperclip icon to link Form 4562 for depreciation.
Click 4582 Pg 1 - Depreciation and Amortization Pg 1.
Step 3: Enter Asset Information
In Part II (Depreciation & Section 179 Deduction), enter:
Description of the asset (e.g., Office Equipment, Vehicle, Machinery).
Date placed in service (the date the asset started being used for business).
Cost or other basis (original purchase price, plus any improvements).
Business-use percentage (if the asset is used for both personal and business purposes).
Depreciation method (MACRS is commonly used).
Recovery period (depends on the asset type—e.g., 5 years for vehicles, 7 years for office furniture).
Enter the business name or industry listed on Page 1 of Schedule C that the form relates to.
On Line 6a under the Description of Property, click the gray triangle to begin the linking process for a second form.
Enter the description of the property being depreciated, select the asset type from the drop-down menu, and enter the date the asset was placed in service for the business.
Select the asset type from the drop-down menu. Double-check the date placed in service to ensure accuracy -- accidentally using the current year can cause incorrect calculations!
Enter the cost or basis of the asset purchased on line 1a.
Enter the percentage of business use for the asset on the second line of Line C. Ensure this reflects the portion of time the asset was used exclusively for business purposes.
Here, you can elect for special depreciation if the asset meets the qualifications for this deduction. Be sure to confirm eligibility with IRS guidelines before making the election.
Step 4: Verify and Save
Double-check calculations and ensure the form is correctly linked.
Save the return and review it before finalizing.
Here's a step by step guide screen recording;