Someone check me on this. TP had a rental since 2006. Used a basis number for dep that was too low due to improvements not being added to basis b4 dep. Makes his dep amount lower than that take. TP sold rental 1-03-2014. Can I recalc what the dep should have been and take that ded on sch-E as other expense. Then show this dep on the 4797 as reducing basis or can I add the improvements to the basis and recognize only the depre actually taken? Your thoughts
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Form 3115 and a Section 481(a) adjustment on Schedule E. Then report the sale normally, as if the depreciation had been reported correctly over time. -
Make sure that those "improvements" were not written off as repairs in prior years if you just got this new client. Over the years I have seen many roof jobs or new decks expensed!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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I'm still trying to figure out what the dependents have to do with the rental.Comment
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Gary, not dependents my fingers quit b-4 I got the depr on there. Dealing all with depreciation. I looked at back years and no repairs or improvements ever written off. So I guess a 3115 and a 481 negative adjustment required. However I question whether I need the 3115 form.Comment
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