Client listed house as rental in june 2017. Took the depreciation on schedule E in 2017, 2018 and 2019. All repairs and improvements so far are under $2500 and were expensed properly in year incurred. Just noticed that he also listed a new dishwasher ($130) as an asset in 2017 (this was the only item listed for depreciation other than the house). He took the $9 depreciation that year on the diswasher but not in 2018 or 2019. Such a small amount what do you think he should do?
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"Dude, you are correct" Rapid Robert -
What do you charge for 1040X, I bet it is more than $18. There is your answer!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Who prepared the returns for the years in question?
Also, strange that tax software did not continue depreciation for years in question.
Consider asking client to have that preparer correct the errors.Always cite your source for support to defend your opinionComment
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Sounds like self-prepared.Originally posted by TAXNJ View Post
I would just drop the dishwasher from the depreciation schedule, without reporting anything. Whether too much or too little tax was paid in the past, the amount of tax is truly de minimis ( "so minor as to merit disregard " - Merriam Webster) compared to the complexity of officially correcting it. This includes the time and money that the IRS (meaning: us taxpayers) would spend processing amended returns and extra forms
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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