Discussion Archives:Correcting for Bonus Depreciation Error

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Discussion Forum Index --> Advanced Tax Questions --> Correcting for Bonus Depreciation Error

Discussion Forum Index --> Tax Questions --> Correcting for Bonus Depreciation Error

Ss-cpa (talk|edits) said:

22 July 2012
An S Corporation leased some equipment in December, 2009. It placed the property in service in January, 2010. The lease was treated as an operating lease on the original returns and later determined to be a capital lease. Bonus depreciation was not taken on the 2009 or 2010 original returns. No election out was made as well. As I understand, an amended return cannot be filed to claim this bonus depreciation after the 2011 tax return was filed. Is that the case? Would it be possible to correct this by just amending the 2010 return to claim section 179 for the equipment? Generally the taxpayer prefers to take the deduction as the equipment is making lease payments, but at this point, I want to make sure there will not be a problem forfeiting a right to a depreciation write-off. The 2011 return was filed assuming bonus depreciation was taken in 2010.

Ss-cpa (talk|edits) said:

23 July 2012
I made a mistake above. I know now that an amendment cannot be made to claim Section 179 as it is too late. To claim Section 179, it would have had to be claimed by 9/15/11. I am looking into filing a 3115 as an automatic change request. Not sure if it would fall under #7 or #105 of the List of Automatic Accounting Method Changes in the 3115 instructions. I appreciate any insight.
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