Depreciation Recapture

[DianeW777]

Yes, you should use the full time it was a rental property (2014-2024) to accurately capture the correct depreciation and change in accounting.

@By55 

[By55]

We are working on section 481(a) adjustment.

My accountant and I have different thinking.

We have a net negative adjustment, but we can not be sure “ Yes “ or “ No “ answer on question 28 that asked “ Is the applicant making an election to take the entire amount of the adjustment into account in the tax year of change? “

I need help clarifying the meaning of this question and the  answer “ Yes “ or “ No “ for this question.

Thank you.

[PatriciaV]

Because you never claimed depreciation in the past, you are now electing to claim an adjustment equal to all prior depreciation. And you are making this adjustment this year, which is the year of the change.

If you were amending last year's return and reporting some of the adjustment on that return, you would answer "no" to this question.