Should I amend last year's return or not due to incorrect depreciation?

Should I amend last year's return or not due to incorrect depreciation?

Fort Mill, SC · Member since 2013 · 17 posts · 1 vote

Hi folks, I frequent the forums quite a bit but don't post a lot. Perhaps someone has a little experience with my question though: I have one rental house and do my own taxes (maybe I'll rethink that last part...we'll see). While doing this year's taxes I noticed that somehow I took almost two years worth of depreciation on my rental (last year) instead of the correct one year. I've had the rental for two years in total so this year (2014) I should take the 2nd year of depreciation. Not a clue how I didn't catch this last year. Nonetheless, should I amend my 2013 return or simply correct the depreciation on this year's (2014) return and not worry about it. Otherwise, everything else looks ok. Any thoughts from the fine folks out there?

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Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
11y

Amend last years. Otherwise you need to fill out form 3115 which is above most taxpayer's heads.

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  • Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    11y

    Amend last years. Otherwise you need to fill out form 3115 which is above most taxpayer's heads.

  • Fort Mill, SC · Member since 2013 · 17 posts · 1 vote
    11y

    Thank you very much for the quick reply Steven. Perhaps I could ask then one more question. What is the best way to amend a return? A little background info: I did my return with Turbotax online filing Federal, North and South Carolina. I live in South Carolina but the Rental is over the border in North Carolina. I'm guessing I'll need to amend the states as well. I have access to the last year's online account as well as a pdf and hardcopies of last years return too. Thank you for any guidance you may be able to offer.

  • Rochester, NY · Member since 2014 · 83 posts · 19 votes
    11y
    Ivan, I spoke with a tax professional (not CPA) who was recommended by a fellow investor and was pleasantly surprised by the quoted cost. I believe she quoted me about $200-250 to file my/my wife +1 rental property. Sorry I can't remember the exact amount as I won't be using her until tax year 2015, but it was lower than I expected and is worth the peace of mind. I've always been a turbo tax guy myself as well.
  • Rochester, NY · Member since 2014 · 83 posts · 19 votes
    11y
    Ivan, I spoke with a tax professional (not CPA) who was recommended by a fellow investor and was pleasantly surprised by the quoted cost. I believe she quoted me about $200-250 to file my/my wife +1 rental property. Sorry I can't remember the exact amount as I won't be using her until tax year 2015, but it was lower than I expected and is worth the peace of mind. I've always been a turbo tax guy myself as well. Forgot to mention turbo tax has an amend a return option built in.
  • Fort Mill, SC · Member since 2013 · 17 posts · 1 vote
    11y

    Thanks Greg. I'm trying the turbo tax amend option now but when trying to open my saved file from last year...turbotax says "its too big"...wish it was referencing last year's refunded amount. HA! I'll keep digging for a bit, but may end up going with a tax professional. I am a do it yourself type though...probably similar to many real estate investor types....

  • Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    11y

    @Ivan M. ,

    Sorry I wouldn't know where to begin in Turbo Tax

  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    11y

    I have realized that I understand taxes just enough to be dangerous......... : )

    I let other people handle that so I can focus on running my business and investments.

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