What is the purpose of Form 4562?

Form 4562 is specifically designated for claiming a deduction for depreciation and amortization. This form allows taxpayers to report their depreciation expenses for tangible property and to identify any amortization of certain intangible assets. It is essential for businesses and individuals who acquire new property or improve existing assets to accurately calculate and deduct these expenses on their tax returns.

The form enables structured reporting regarding the basis of the assets, the recovery period for depreciation, and the method used, such as straight-line or accelerated depreciation. By properly utilizing Form 4562, taxpayers can maximize their depreciation deductions, positively impacting their overall taxable income. This form plays a vital role in ensuring compliance with tax laws regarding the treatment of asset costs over time.

In contrast, the other options pertain to different tax-related functions: filing income tax returns, reporting self-employment income, or substantiating health care expenses, none of which specifically relate to the use of Form 4562.