Discussion:Commercial building 25-year property?

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Revision as of 19:04, 22 July 2009
JR1 (Talk | contribs)
(Actually, I'd ju)
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Chase (Talk | contribs)
(I'll let the cli)
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{{ForumReplyPost|UserID=JR1|Date=July 22, 2009|Text=Actually, I'd just fix it by adjusting 08 and move on, but that's the lazy me.}} {{ForumReplyPost|UserID=JR1|Date=July 22, 2009|Text=Actually, I'd just fix it by adjusting 08 and move on, but that's the lazy me.}}
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 +{{ForumReplyPost|UserID=Chase|Date=22 July 2009|Text=I'll let the client know about the error and then they can decide. Thanks !}}

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Discussion Forum Index --> Tax Questions --> Commercial building 25-year property?

TaxDude (talk|edits) said:

15 April 2007
Just got a new client, General Partnership operating a Real Estate office. On the previous tax returns, they have listed on Form 4562 the comml building the partnership owns and operates their office in as 25-year property, S/L. Shouldn't it be Nonresidential Real Property 39yrs, S/L? Or am I missing something?

Kevinh5 (talk|edits) said:

15 April 2007
What was the year placed in service?

TaxDude (talk|edits) said:

15 April 2007
It was placed in service in Sept 2004.

Glmpllc (talk|edits) said:

15 April 2007
sounds like they have elected an incorrect life for the asset...s/b 39 years...you have options...

1)amend p/y returns; 2)file 3115 to correct for over dep'n (if avialable); 3)do nothing, as i believe the TP has elected a method of accounting (albeit incorrect)

my order of preference is 2, 1, 3...but that's just me, others probably have differeing opinions

Chase (talk|edits) said:

22 July 2009
Sanity check -- if the depreciation in my client's case was calculated incorrectly for only 1 year, i.e. 2007, then we can file a 1040X instead of 3115, right? In my client's case, the commercial condo was depreciated over 27.5 years rather than 39.

JR1 (talk|edits) said:

July 22, 2009
I would. You're not changing methods, merely correcting.

JR1 (talk|edits) said:

July 22, 2009
Actually, I'd just fix it by adjusting 08 and move on, but that's the lazy me.

Chase (talk|edits) said:

22 July 2009
I'll let the client know about the error and then they can decide. Thanks !
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