Purpose of boxes labeled MFC or “Multi-form code”

The multi-form code box is used to direct income or deductions from one screen or form to another.

For example, a taxpayer is depreciating some assets using Form 4562. The assets being entered belong to the taxpayer's business. In this return, the taxpayer and spouse have 3 separate businesses reported on Schedule C. Which multi-form code to use is determined by the order in which the Schedule C forms were entered. This is displayed in the Existing Forms List that displays when you go to open a screen with multiple pages.

As you can see, the second Schedule C is for the restaurant. Since the restaurant is the second form on the list, use MFC 2 on the 4562 screen.

Using Multi-form Code with Schedule E Rental Properties

When you are using the multiform code with rental properties on Schedule E, the multiform code refers to the property, not the Schedule E. Each property (in other words, each screen) has a separate multi-form code. The MFC number used on the asset screen (for instance, on screen 4562) for a Schedule E should refer to the property (to the screen the property is listed on), not the instance of the Schedule E. (Up to three properties are printed on a Schedule E.)