Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A taxpayer who failed to claim the depreciation for the last 12 years may correct this by: 1) Filing amended returns for all open years
A taxpayer who failed to claim the depreciation for the last 12 years may correct this by:
1) Filing amended returns for all open years when the incorrect amount was claimed.
2) Filing Form 3115, Application for Change in Accounting Method
3) Including the unclaimed depreciation as "Other Depreciation" on line 16 of Form 4562. Depreciation and Amortization, in the current year.
4) Increase the basis of the property by the amount of depreciation that could have been claimed.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started