Amortization no longer taken

[Rondi]

Hi,
I am working a Partnership return that I have taken over from a previous preparer. The P/S began in 2008 and the $6,618 start up costs were amortized to the limit of $5,000.
In 2009, an additional $108 was taken.
In 2010, a new preparer took over the return and did not amortize any of the remaining start up costs in either 2010 or 2011.

This is small potatoes, I know. But here's my question:
For 2012, would you start the amortization up again, beginning where the 2009 return left off? or
work the return assuming the proper amount had been taken in 2010 and 2011?
or (not my best choice) just forget about it?

Thanks much for your insight.

[Y2KEA]

Section 481

It may be possible to take a section 481 adjustment for the missing amortization.

[Roland Slugg]

For an amount this small I would just deduct $324 this year, then revert to $108 in future years. I would probably "bury" the additional $216 in with a different line-item, such as "Miscellaneous," but I might just call it "Correction of 2010 and 2011 amortization." First, however, review the 2010/2011 returns very carefully to make sure the $108 really wasn't deducted in one or both years. It might be lumped in with depreciation. I assume you HAVE looked at Part VI of F-4562. Since this is a partnership, there must be a double-entry set of books somewhere, so it should be easy to see if the amortization was recorded on the books in 2010/2011, and if it was, it should be on the partnership's returns ... somewhere. (You've probably already done this.)

Before five other readers post replies saying this isn't proper, I will acknowledge that I realize the above recommendation may not suit everyone. But when small, insignificant amounts are involved, I believe a practical solution is best. Since this is a partnership, it would be highly impractical to amend its returns for two years ... involving a minimum of two partners each year ... for a mere $216 in missed deductions.

[Rondi]

Highly Impractical to amend - Yes! Taking it all in 2012 to catch up - an option I did'nt consider - Thank you for your thoughts.

[taxxcpa]

I agree. Some people agonize over how to handle some $25 to $50 item which has such limited effect on the taxes that almost any handling would be better than hassling with it and trying to find a clear-cut rule on how to handle some obscure, seldom-encountered item.

[taxea]

If it qualifies as an adjustment on the current year this is what I would do with an explanation. I would not "cover" it in another area nor do I accept "misc" as an expense from my clients. To my mind every expense can be catagorized. Miscellaneous expenses is just asking for a closer look.

[ChEAr$]

(some text obliterated for sake of brevity.....)

Since this is a partnership, there must be a double-entry set of books somewhere, ..........

Bets, anyone? (grin