Discussion:Error on Prior Year Depreciation Deduction
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Discussion Forum Index --> Tax Questions --> Error on Prior Year Depreciation Deduction
Acctgservices (talk|edits) said: | 18 August 2006 |
| A client's previous year's taxes were not completed properly. The client acquired $22000 of Fixed Assets, but the preparer only deducted depreciation based on $10000 of Fixed Assets on Form 4562 and did not take a Section 179 deduction. When preparing the current year tax return, will I be able to deduct the 2nd year's depreciation on $22000 and also deduct depreciation on the balance of $12000 from the prior year? | |
Acctgservices (talk|edits) said: | 18 August 2006 |
| I am sorry. I should have clarified that the prior year happens to be 2002. I am now completing 2003. | |
Taxstudent (talk|edits) said: | 18 August 2006 |
| You cannot amend for 2002 using the liberalized 179 regs on amended returns. You cannot amend 2002 to include the $12000 as depreciable unless it was a posting error. (The other accounting method exceptions are probably not relevant.) If it's not a posting error, file a Form 3115 for the current year (2005 probably) to treat the $12000 as depreciable and catch up on the past depreciation via the 481(a) adjustment. | |
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