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Level 2
posted Jun 1, 2019 8:52:57 AM

Add Closing Costs a Year Late for Depreciation?

I bought a 2-family house in 2015 and began renting it in 2017 after construction.  When I started depreciating the cost of the rental unit I forgot to include the closing costs.  Must I amend the 2017 return or can I just add the costs to my 2018 return as a new line?

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1 Replies
New Member
Jun 1, 2019 8:52:59 AM

If you add it in 2018, you will see the prior depreciation on the screen, but you will miss that deduction in 2017.  The 2017 amount will be included in the total of depreciation you will have to claim and pay tax on when you sell.  If you don't care about those disadvantages, just enter it as a new asset with the same beginning date as the house.  If you do mind, amend 2017.