Discussion:DEPRECIATION ON RENTAL NOT TAKEN

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Discussion Forum Index --> Advanced Tax Questions --> DEPRECIATION ON RENTAL NOT TAKEN
Discussion Forum Index --> Tax Questions --> DEPRECIATION ON RENTAL NOT TAKEN

KATHRYNH (talk|edits) said:

18 April 2008

I HAVE A CLIENT THAT CAME TO ME IN OCTOBER OF 2006. SHE DID NOT HAVE AN EXTENSION THEN FOR 2005 AND HAD NOT TAKEN DEPRECIATION ON HER RENTAL SINCE INCEPTION (OF WHICH WAS ABOUT 8 YEARS) WHEN I WAS LOOKING AT THE TAX LAW ON THE IRS WEBSITE IT SAID: THAT I COULD TAKE DEPR ON FORM 3115 BUT THAT IT MUST BE TIMELY FILED FOR THE SAME TAX YEAR IN WHICH YOU SELL THE RENTAL PROPERTY (11.4 TOPIC) THEY HAD LOST THE PROPERTY IN 2006 DUE TO A FORECLOSURE. HOWEVER, WHEN I WAS TRYING TO FILL OUT THE FORM 3115, IT SAID THAT YOU COULD NOT TAKE THIS IN THE YEAR OF SALE AND THE IRS ALSO STATED THIS--I WAS TRYING TO TAKE IT IN 2006, SINCE IT WAS THE YEAR OF SALE PER THE 11.4 TOPIC.

SO I AM PERPLEXED. COULD I HAVE TAKEN THE DEPRECIATION ON 2005 OR 2006 AND JUST STATED "SECTION 481" ADJUSTMENT WITHOUT FILING THE FORM 3115; OR WOULD I HAVE BEEN REQUIRED TO FILE FORM 3115 AND COULD I STILL HAVE TAKEN THE DEPRECIATION?

PLEASE HELP

Newtaxguy (talk|edits) said:

April 18, 2008

Folks, may i do the honors?

Please fill out your profile.

Please don't use ALL CAPS... it seems like you're shouting.

The New Tax Guy

Donniecastleman (talk\|edits) said:	18 April 2008
Glad that answered your question. On the verge of badgering.

KATHRYNH (talk\|edits) said:	18 April 2008
Where do I go to fill out my profile? Sorry for using all caps. I am a CPA.

Newtaxguy (talk\|edits) said:	April 18, 2008
goto "create account" in the upper right... then u will see how to fill out profile.

KATHRYNH (talk\|edits) said:	18 April 2008
there is no create an account anywhere that I can find.

KATHRYNH (talk\|edits) said:	18 April 2008
I believe i have an account, if i go into preferences, there i am.

KATHRYNH (talk\|edits) said:	18 April 2008
I believe i have an account, if i go into preferences, there i am.

Trillium (talk\|edits) said:	18 April 2008
Kathryn: To update your profile, you need to get to your User Page, and up at the top of the page there's a place you click to Edit This Page. Add some info (CPA, background as a tax preparer, etc.) and then SAVE the changes. The easiest way to get to your User Page is to click on your name in one of your discussions after you've logged in.

KATHRYNH (talk\|edits) said:	18 April 2008
Trillium: finally got it. Can any of you still help me? Thanks, Kate

KATHRYNH (talk\|edits) said:	18 April 2008
Can I also go back and amend the 2006 return to take the depreciation not taken and file the 3115 with it still?

Trillium (talk|edits) said:

18 April 2008

Kate - thanks for updating your profile. Forum participation levels seem pretty low today (people are still in recovery from Tuesday, probably), and the morning rush has come and gone. There's generally another crew, or the same people back again, in the evening, so be patient, and eventually somebody'll come along who's dealt with this in practice (which excludes me) and will give you some pointers.

KATHRYNH (talk\|edits) said:	19 April 2008
Trillium-Thanks, I appreciate your help. I found out about this site from the Back to Basics Seminar that I attend. Your info in setting up the user file was more helpful. Especially, now that I know that I can click on the names to see who I am talking to.

Barbie (talk|edits) said:

19 April 2008

Kathrynh,

Did you do a search here for Form 3115 and/or Sec 481? I find it very helpful to do this as it shows previous discussions on the topic. I find that I often don't have to ask another question.

Just use the search box in yellow to the left.