Unauthorized change to method of accounting question for rental property depreciation.?
Unauthorized change to method of accounting question for rental property depreciation.?
I have a piece of property I have owned since 2003. I have not been
claiming depreciation. I want to begin to do so. If I just start
claiming depreciation on my taxes is this considered an unauthorized
change in my method of accounting?
It was placed into service in 2003- I just never claimed depreciation.
Answers:
Chosen Answer
Codys mom: if you have been renting your property since 2003 then you must start depreciation in 2003. Therefore you must amend your prior years returns to reflect the depreciation in each subsequent years. If you finally put your property into service and rented it out in 2007 then you can start depreciating in 2007. This would not be considered an unauthorized change in accounting method. depreciation doesn't have anything to do with accounting method. talk to your local hrblock office . they don't charge for advice.
2008-03-06 21:20:47
Codys mom: if you have been renting your property since 2003 then you must start depreciation in 2003. Therefore you must amend your prior years returns to reflect the depreciation in each subsequent years. If you finally put your property into service and rented it out in 2007 then you can start depreciating in 2007. This would not be considered an unauthorized change in accounting method. depreciation doesn't have anything to do with accounting method. talk to your local hrblock office . they don't charge for advice.
2008-03-06 21:20:47
v b: If you forgot to claim depreciation and you've already filed two tax returns without it, then you are out of luck until you sell the property.
In the year of sale only, you can file a form 3115 and attach it to the tax return.
2008-03-07 05:14:07
2008-03-07 05:14:07