Solved: Re: Depreciation calculation in Form 4562?
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misterno123
Level 2

Depreciation calculation in Form 4562?

I bought my house on 5/1/2014 and the garage in the house is my home office. I always used the depreciation but now I understood that I was doing it wrong. I also know that you can not amend your tax return prior to 3 years. So I wanted to go head and amend the return from 2018 and 2019.

 

Here is a snapshot of the form 4562 where I want to correct it. I copied it from 2017 tax return. So look where it says 01/2017. Should I place that with the date I purchased the house which is 05/01/2014? Or should it be the first day of the tax return year which in this case is 01/2017?

 

Also is the row I correct where it says Nonresidential real property?  See the snapshot below.

 

https://imgur.com/a/9CJRwgl

1 Best answer

Accepted Solutions
AmeliesUncle
Level 11

Depreciation calculation in Form 4562?

Yes, it should have been 5/1/14 for all years.  Well, actually only the first year, and other years would not show that at all (but it WOULD show up on the bottom of 8829).

 

However, it is not a major mistake.  You have been missing a $20 deduction each year, but other than that, your mistake didn't really affect much.   So I would not bother to amend just to claim a missing $20 deduction.  Just start doing it correctly now.

View solution in original post

6 Replies
DavidD66
Employee Tax Expert

Depreciation calculation in Form 4562?

Instead of amending the prior three years, you should file Form 3115, Application for Change in Accounting Method.  You can make the correction all at once on your 2020 tax return.  TurboTax does not support Form 3115, so you won't be able to use TurboTax to file if you choose to use Form 3115.  I recommend you find a local tax professional to help with the situation.

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misterno123
Level 2

Depreciation calculation in Form 4562?

Instead of amending the prior three years, you should file Form 3115, Application for Change in Accounting Method.  You can make the correction all at once on your 2020 tax return.  TurboTax does not support Form 3115, so you won't be able to use TurboTax to file if you choose to use Form 3115.  I recommend you find a local tax professional to help with the situation.

------------------------------------------

Thanks but my real question; is the date supposed to be 05/01/2014 or 01/01/2017 in that bucket?

 

Also is Nonresidential real property correct?

 

AmeliesUncle
Level 11

Depreciation calculation in Form 4562?

Did you start using the Home Office in 2014 or was it in 2017?

 

Look for Form 8829 on your 2017 tax return.  What is on Line 39 and 41?

 

If you used a Home Office in 2014, 2015 and 2016, does that section (Part 3 of Form 8829) show anything?  If so, what does it show?

misterno123
Level 2

Depreciation calculation in Form 4562?

I started using my garage as home office the day I bought the house which is 05/01/2014

 

This is form 8829   line 39 and 41

 

https://imgur.com/a/5SY6ZX7

 

Also every year beginning 2014, section III of form 8829 shows values. But the problem is I made a mistake and I typed in 01/01/2015 in 2015 and 01/01/2016 for 2016 and on. I guess it should have been 05/01/2014 for all years because that is when the depreciation started right?

AmeliesUncle
Level 11

Depreciation calculation in Form 4562?

Yes, it should have been 5/1/14 for all years.  Well, actually only the first year, and other years would not show that at all (but it WOULD show up on the bottom of 8829).

 

However, it is not a major mistake.  You have been missing a $20 deduction each year, but other than that, your mistake didn't really affect much.   So I would not bother to amend just to claim a missing $20 deduction.  Just start doing it correctly now.

View solution in original post

misterno123
Level 2

Depreciation calculation in Form 4562?

Thanks

 

Also is the row I correct where it says Nonresidential real property?  See the snapshot below.

 

Keep in mind this is just a garage in my residential house

 

https://imgur.com/a/9CJRwgl

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