no deprecitaion taken on rental property

[ardi600]

i have a situation where the client has not taken any depreciation on a rental property and the property was sold last year. my understanding is the return within allowable time to amend need to be amended and have deprecitaion added to them. then, the remaining depreciation which should have been taken over the years(minus the amount on the amended return) will go on the return for last year which the property is sold. then, that amount of depreciation will also go on schedule E as other expenses. So, the basis is reduced by depreciation, however the seller gets a deduction on sch E which is kind of an offset(disregarding the amended returns). am i correct?

[taxea]

check the instructions for form 3115

[Kram BergGold]

Form 3115

I would just fix all depreciation on the Form 3115 for the year of the sale and not file Forms 1040X fo rthe open years. The exception would be if all the added depreciation wouid save a lot more if claimed in the open years.