I have a new client that has owned a res rental property for 5 years. Whoever prepared his return before now never showed the purchase of the rental property on the Sch E so he has missed 5 years of depreciation on the structure. Is there a simple way to recapture the lost depreciation without having to amend 5 years of returns? Possibly "catching up" on the depreciation now and being normalized for next year?
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Form 3115. -
The question was if there was a simple way. :-)
I agree with Lion, Form 3115 needs to be filed to 'catch up' on the missed depreciation. If you have never done Form 3115, many people have appreciated the $20 package for Form 3115 from "BrassTax" (Google it). I haven't seen it, but I know many people said it was helpful.Comment
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Excellent. ThanksComment
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Simple and thorough are not the same. Simple would be to amend open years and give up earlier depreciation. I do not recommend that to my clients. Thorough would be to file Form 3115.
I also agree that Lisa Ihm/BrassTax has a great inexpensive booklet on this, as well as other topics available.Comment
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