Just to confirm: I SHOULD/MUST claim income on the refund from him, right?
Since this is on understated depreciation, I change my mind. I now believe all you need to do is to increase the amount of depreciation taken on the previous rental property, as depreciation is "allowed or allowable" under the tax law. In other words, I now believe the amount you received from the CPA is not currently taxable, but will be when you sell your property. Hopefully, some higher level tax experts will chime in .
Sorry for the delay in replying. The message from Intuit went into my junk folder.
