No tax records from 2009-2012. Rental house in service starting 2008. Don't know years I did/did not claim deprec. Now CPA wants to do catch up deprec.Is this ok?

[TaxGuyBill]

Did you EVER claim depreciation for any of those years?

If so, the CPA can't 'catch up' on depreciation unless he knows EXACTLY what depreciation was claimed (even then, there may be restrictions that may not allow it).  Otherwise, he may be claiming 'catch up' depreciation on something you have already claimed.

[TomYoung · Accepted solution]

This is a little hard to follow, but if by "catch up deprec." you are referring to a "current year's income tax return" - and I don't even know what tax year we're talking about - "cumulative depreciation expense that gets accumulated depreciation properly stated as if I was taking depreciation for all those years", then nope, that's not kosher.

Get transcripts for all "missing" years from the IRS.  Amend any open years where depreciation was not taken, or taken in an improper amount.  When you sell the property you will need to recapture all the depreciation the you took or could have taken, even if you didn't take it.

Tom Young

[SweetieJean]

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