ThomasM125
Expert Alumni

Deductions & credits

You can make the journal entry you suggest, crediting accumulated depreciation and debiting retained earnings for book purposes and it would be correct. However, to reflect the missed depreciation as a deduction on your tax return, you would need to file form 3115 to reflect a change in accounting method, or amend the prior year returns, for which you could only go back three years. Here is an article on the subject:  Recording missed depreciation

@htstucco 

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