Depreciation of assets

[teddyruxfin]

Hi,

I am helping a Japanese friend with her taxes this year using TurboTax. I am by no means an expert in this field, hence my question. She is a musician with some very expensive equipment and she has never depreciated anything before. After putting the info in, her refund is huge, but it shows her AGI as about 9K. It was not that high to begin with, 25K. My question is this: Is it better to take the depreciation a little at a time or all at once? Will an AGI of 9K have an adverse affect on her in the future if she needs a loan, etc?

Thanks so much.

[solomon]

3115

If it were only one year missed, the prior return could be amended. With several years, I think it would be considered an accounting change requiring Form 3115. Someone else can verify if so. See Rev. Proc. 2007-16.