rental depreciation not done correctly

[Lori B]

I have a new client.  The previous preparer did not depreciate anything that was done to the rental.   It looks like repairs and changes to the property were written off the year things were done not depreciated.

Has anyone dealt with this?

Do I just go back the last few years and amend the returns? 

thank you!!

Lori 

[Lee Reams]

Lori,

It may be Ok as is. The cap and repair regs allow some pretty large write offs. See screen capture from the Big Book below. Fo more detail, the cap and repair regs are covered in chapter 3.27 of the BB.  Specifically page 3.27.12 for the “per-building safe harbor.” 

Lee

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	Lee Reams Sr., BSME, EA Chief Content Officer CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE p: 1.800.442.2477 x240 w: www.countingworkspro.com/  e: lee....@countingworks.com
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