I had another thread here that started 2 days ago but for some reason I'm no longer able to access it. Not sure if I broke a rule in my responses but apologies if I did.
My issue: I claimed assets in my 2017 tax return for my starting business which performed at a loss that year. My accountant informed me at the time that the assets would be fully depreciated to maximize my return. For 2018 filing, I decided to try TT and did the filing myself. Thinking the assets from 2017 were fully depreciated, I removed them while filing for 2018. Realizing later that this was not the appropriate move since the assets are still in use, I planned to add them back during my 2019 tax return and properly stating they are fully depreciated so I don't get a tax break twice for the same deductions.
Upon looking a little closer in my 2017 return, I realized the assets were never depreciated but instead spread out over 5 years using 200 DB HY. Section 179 was not used nor was Bonus Depreciation.
My questions now are as follows:
1. Can I simply add them back and start where the depreciation left off or do I have to amend my 2018 taxes? I realize this will become fully depreciated over 6 years instead of 5 since nothing was depreciated during 2018.
2. The 5 year time frame is based on the asset category selected at the time the assets were first filed. When I select the proper category now that best describes these assets, the time frame is 7 years, not 5. When I select a less appropriate category, it becomes 5, which would align with the original plan that was created in 2017 by my accountant. Is it a big deal if I keep it at 5 years even though the category doesn't describe the assets the best possible way?
Any clarification is appreciated!
