I have a rental property that was put in service in 2007 and every year, the expense for depreciation was taken on schedule E. Some of the years that my taxes were done by CPA's the 4562 form was included in the return and other years it was not. The only depreciation that was taken was for the rental property (i.e. there were no other business assets that were depreciated). Why would it have been included some years and not others? Is it not required to be filed every year?
Also, if it was not included and should have been, will that cause a problem later when the property is sold and depreciation is recaptured? And how would I fix this with the IRS records if its been longer than 3 years and the older returns cannot be amended?
One other related question is if I can elect to not take the depreciation expense on the rental in certain future years if I end up having tax credits that can wipe out the tax that would be owed on the amount of the depreciation that I would not be taking. If I don't take the depreciation expense on some years, does that reduce the amount of depreciation recapture I will have to pay when the property is later sold?
Thanks.
