A late depreciation

7 Replies

@Michael Proskine

You'll want to consult your tax CPA/EA, or onboard one as you'll need to apply for a change in accounting method (Form 3115) -- impermissible to permissible.  This will probably be in the "very difficult" category for a DIY preparer.

Good idea to get it taken care of, you'll have potential Unrecaptured Sec 1250 gain if you sell whether or not you depreciated.

@Michael Proskine

@Eamonn McElroy is correct. You are able to capture all the lost depreciation in the next tax year filing.

Why was the depreciation missed in the first place? did you do the returns yourself...if you did; I would look to have them done by a professional going forward. If an accountant missed the depreciation - I would fire him/her ASAP.

Originally posted by @Michael Proskine :

So I can just file the 3115 form with my 2018 taxes?

You can but you should not try it yourself. This is far more complicated than regular depreciation, and I highly recommend you get help from someone who has done it before.