IRC Section

Enter the appropriate IRC code section for assets with a method of "A." The entered section prints on Form 4562, Page 2, Part VI, and also on the depreciation and amortization detail report(s).

Note: This is used for print purposes only. An entry here has no affect on the calculation of the current year amortization amount that is based on your entries in "Method," "Life," and "Date in Service." Enter date amortization began as "Date in Service."

Exception: Enter '194' to calculate the amortization for reforestation expenditures with an 84 month period using a half year convention.

Exception:Enter '59e2B' to print the 4562 if the amortization is for research and experimental expenditures that was elected to amortize over 10 years for prior year assets.

Exception: Enter '174' to calculate the amortization for research and experimental expenditures placed in service after 2021 with a 60 or 180 month period using a half year convention. These assets will continue to be amortized post disposal throughout the life that was entered.

A partial list of applicable codes is provided below:

IRC Section	Property or Expense
Sec. 169	Pollution control facility
Sec. 174	Research and experimental expenses
Sec. 195	Business start-up expenses
Sec. 194	Reforestation expenses
Sec. 197	Amortization of Goodwill & Other Intangibles
Sec. 178	Acquiring a Lease
Sec. 171	Bond premiums
Sec. 461	Loan fees
Sec. 59(e)	Intangible drilling costs
Sec. 59(e)	Development expenditures
Sec. 59(e)	Mining exploration expenditures