Unknown asset

rleaf — Mon, 09 Mar 2026 09:17:37 GMT

Our accountant has retired last year. We used to keep track of our revenue and expenses, and he used to file all corporate forms for us. This year we decided to start using TurboTax Business to file. To our surprise, schedule L from the last two years shows $2,007 more assets than we know of. There was no depreciation claimed for that extra asset over the last 2 years. What should we do with it?

Re: Unknown asset

PatriciaV — Wed, 02 Mar 2022 21:17:04 GMT

If you are certain that the missing asset should have been depreciated, you will need to amend your prior year returns to report the missing depreciation. Unfortunately, the IRS does not allow you to "catch up" depreciation in a later tax year.

From IRS Pub 946 "How Do You Correct Depreciation Deductions?":

You can file an amended return to correct the amount of depreciation claimed for any property in any of the following situations.

You claimed the incorrect amount because of a mathematical error made in any year.
You claimed the incorrect amount because of a posting error made in any year.
You have not adopted a method of accounting for property placed in service by you in tax years ending after December 29, 2003.
You claimed the incorrect amount on property placed in service by you in tax years ending before December 30, 2003.

When to file. If an amended return is allowed, you must file it by the later of the following.

3 years from the date you filed your original return for the year in which you did not deduct the correct amount. A return filed before an unextended due date is considered filed on that due date.
2 years from the time you paid your tax for that year.

Amend the oldest return first, then amend last year.

You can either file an extension for your current year return, or calculate the depreciation that should have been taken so you can add that asset and complete this year's return.

In either case, you may benefit from the assistance of a local tax expert in preparing the amended returns, since your previous tax preparer is no longer in business.

topic Unknown asset in Get your taxes done using TurboTax

Unknown asset

Re: Unknown asset