Something I realized TTX did was if you did not claim a depreciation one year, it will adjust the amount that you can depreciate in future years to account for the missed depreciation. Is that true?
When you enter the asset with a prior year in service date, the program will "assume" you took the required depreciation for all prior years, display that amount, then depreciate for the current tax year based on the assumed prior year's depreciation.
If you change the prior year's depreciation amount, then the program will adjust the current year depreciation to compensate.
If you did not take the prior year's depreciation, that is not the correct way to fix and report this. You need to amend the prior year's return, provided it was not placed in service "more" that two years prior.
If placed in service more than 2 years prior and you didn't depreciate it, then you have to file IRS Form 3115 with the current year's return to properly fix this.
